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cp04-01-1992 c• AGENDA SPECIAL MEETING - HUTCHINSON CITY COUNCIL WEDNESDAY, APRIL 1, 1992 1. Call to Order - 12:15 P.M. 2. PUBLIC HEARING Adoption of Resolution Calling for An Organized Refuse Collection System for Residential Only Action - Motion to close hearing - Motion to reject - Motion to approve - Motion to waive reading and adopt Resolution 3. Consideration of Proposed Purchase Agreement for Liquor Store Condominium Unit with Erickson's Diversified Corporation Action - • 4. Adjournment is PUBLISHED IN THE HUTCHINSON LEADER THURSDAY, MARCH 19, 1992 PUBLICATION NO. 4356 NOTICE OF PUBLIC HEARING • This Notice of Public Hearing is adopted by the Hutchinson City Council for and on behalf of the City of Hutchinson on this 13th day of March, 1992. RECITALS: 1. The City of Hutchinson presently receives solid waste collection services pursuant to a written contract between the City and Junker Sanitary Services, Inc.; 2. The contract will expire on June 30, 1992; 3. The City desires to consider the possibility of an organized collection system pursuant to Minn. Stat. §115A.94 (1991) ; NOW THEREFORE BE IT RESOLVED by the City Council for the City of Hutchinson, Minnesota: • 1. A public hearing will be held at the City Council chambers for the City of Hutchinson, Hutchinson City Hall, 37 Washington Avenue West, Hutchinson, Minnesota 55350 on the 1st day of April, 1992 at 12:15 o'clock _r.M. to consider the possibility of adoption of an organized collection system pursuant to Minn. stat. §115A.94 for the purpose of organizing collection of the residential generation of solid waste. 2. The City Administrator for the City of Hutchinson is hereby directed to give notice of such hearing by mailed notice to Junker Sanitary Services, Inc. and to otherwise provide notice as required by law. • Adopted by the Hutchinson City Council this 13th day of March, 1992. CITY OF TCHINSON Paul L. Ackland, Mayor Att Gary D. lotz, ity Administrator • • RESOLUTION OF INTENT • This Resolution of Intent is adopted by the Hutchinson City Council on the 1st day of April, 1992. RECITALS: 1. By Resolution dated March 13, 1992, the City Council for the City of Hutchinson ordered a public hearing to be held on April 1, 1992 to consider the possibility of adoption of an organized collection system pursuant to Minn. Stat. §115A.94; 2. The public hearing was duly and properly called and held and appropriate notice was given to the public by way of publication of the Notice of Public hearing and by mailed notice to the presently licensed hauler; 3. The City of Hutchinson believes that organized collection would be in the best interests of the City of Hutchinson, at least at the present time; NOW THEREFORE, IT IS RESOLVED by the City Council for the City of Hutchinson, that the City intends to enter into a system of organized collection of residential solid waste and hereby invites the participation of interested persons, including persons licensed to operate solid waste collection services in planning and establishing the organized collection system. • J Attest: Gary D. Plotz City Administrator CITY OF HUTCHINSON By: Paul L. Ackland, Mayor a�' FROM BRIGGS & MORGAN (TUE) 3,31, 17:32 1 PAGE 2 v • M9ITZ" DIRECT ELL Nv"ZZ (612) 334.8532 March 31, 1992 G. Barry Anderson, Esq. Hutchinson City Attorney 101 South Main Street Hutchinson, Minnesota 55350 Dear Barry: SAINT PALL OMCE *200 FIM KITIO DANK STILOf IANT ►ACL,ND4260TA 60101 TELCPSOPC bM Sao .6600 sic M7N uu1 a s BY FAX: 1 -687 -4096 This correspondence is to set forth the position taken by our client, Junker Sanitation, • Inc„ in respect of the waste hauling contract with the City of Hutchinson. I ask that this letter be made a part of the record at the public hearing on April 1. 1 will be attending the public hearing as well and will either answer questions or make comments as appropriate. It is our view that there is an affirmative obligation on the part of the City of Hutchinson to negotiate a new contract with Junker Sanitation for both residential and commercial hauling. Under Minn. Stat. §I15A.94, there is a statutory mandate that the City must follow of which the public hearing you are proceeding with is only one small part. As you know, Subd.4(g) of the Statute gives the City of Hutchinson explicit authority to avoid the hearing procedures In the Statute and negotiate a contract directly with "all of the persons licensed ... " In the city. Of course, Junker Sanitation is the only licensed carrier and, thus, would be the only one with whom you can negotiate under Subd.4(g), From our earlier conversations, I believe you and I have concurred that the City and our client can negotiate during the 180 -day period under Subd.4(g) of the Statute. We are available to begin those discussions at the City's early convenience. In addition to the option of negotiating with our client under Subd.4(g), the Statute, we believe, requires that the City negotiate exclusively with our client under Subd.(4c) providing, in part, that the "City ... shall Invite and employ the assistance of persons licensed as of the date of the resolution of intent to operate waste collection services In the city of town," Again, our client is the only such person. We believe that Subd.4(c), LW orrICES BRIGGS AND �-iORGAN aaorLaarow.L ARsociAr30N P 400 tea CENTER MINNEAPOLIS, XINNESOTA 63409 TELEPHONE -612 036•.600 rACSIMILE F612i 056 -aeoo FROM BRIGGS & MORGAN • BRIGGS &=.10 MORGAti (TUE) 3,31, 17:33 NO.2060667 60 PAGE 3 in effect, bars participation by any other haulers In the City process during the initial 9t} day period. Moreover, Subd.4(c) in particular, and §115A,94 in general, provide an imperative for the City to undertake a good faith effort to negotiate a contract with licensed hauler(s) which in this case is our client only. Thank you for your attention to those matters. yours, A. Cairns 0 JAC/bk cc: Jim Junker • 12"1 § 115A.93 WASTE MANAGEMENT (c) A licensing authority ahan prohibit mixed municipal solid waste collectors from imposing a greater charge on residents who recycle than on residents who do not recycle. Subd. 4. Date certain. By January 1, 1993, each county shall ensure that each city or town within the county requires each mixed municipal solid waste collector that provides curbside collection service in the city or town to obtain a license under this section or the county shall directly require and issue the licenses. No person may collect mixed municipal solid waste after January 1, 1993, without a license. ILws 1989. tat Sp., c. 1. art 20, f & Off. Oct 4, 1989. Amended by Laws 1991, a 337, if 42, 43. Historical and Statutory Notes 1991 Legislation The 1991 amendment in subd. 3 in par. (a) deleted "to the extent possible" foil o wi "shall require ", aad added par. (c) prohibiting greater Charges on residents who recycle than on resF dents who do not; and added subd. 4 setting the date by which mired municipal solid waste col- lectors most obtain Sceoaea Law Review Commentaries Need for a principled expansion of the tole of local government in environmental enforcement Beverly Conerten and LeRoy Paddock, 16 Wm_� Mitchell L.Rev. 949 (1990). YARD WASTE ig 115"31. _ Yard waste prohibition (a) Except as authorized by the agency, in the metropolitan area after January 1,1990, and outside the metropolitan area after January 1, 1992 a person may not place yard waste (1) m 'miied municipal 'solid'wss tax . _` .. .... M in a dts _ posai facility; or , (3) in a resource recovery facility except for the purposes of composting or co- compoat= ing. weeds, and waste. subject to this, snbdivisioa is garden wastes, leaves,.lawn cuttings, w P Bs .. :. Lava .,. 198& c. 685, § 21. .Amended by Laws 1991, a 337, .4 44. .. �. - Historical and Statutory Note - 1991 Usubstion - .- Tbe 1991 amendment provided that persons may not waste in apecdW plam " of', yard . _ . 115A.935. Solid waste generated outside of Minnesota - No petsoo shall transport into or deposit in thi state, for the purpose of processing or disposal. solid waste that was generated in another state, unless the waste: (1) meets all the solid waste management re gulati generated; and ons of the state In which it was ., M contains none of the items specificany banned from mixed municipal solid waste this state, including waste tires . used motor on, waste lead acid batteries, yard waste, major appliances, and any other item specifically banned from the waste stream and this chapter. Laws 1991, a 337, 1 45. ORGANIZED COLLECTION . 115A.94. Organized collection -- waste is w hic h 1. Definition. "Organized conection" means s System for collecting st s pecified collector, or a member of an orgatuzation of conectors, 88 WASTE MANAGEMENT n solid waste collectors from residents who do not recycle. :ounty shall ensure that each city or 1 solid waste collector that provides n a license under this section or the :s. No person ma y collect mixed a license. nended by Laws 1991, e. 337, ¢il a 43. which mixed municipal solid waste 001 - nest obtain licenses. view Coeamentarles for a principled expansion of the role of vemmeat in environmental endorsement Conerton and LeRoy Paddock 16 Wm. L.Rev. 949 (1994 ropolitan area after January 1, 1990, 1992 a person may not place yard uposee composting or'cocompost- '_*Wtes, leaves, lawn cuttings, 1 44. csots' ate, for the purpose of processing or state, unless the waste: stions of the state m' which it was from mixed municipal solid waste in sate lead acid batteries, yard waste, armed from the waste stream under CnON means a system for collecting solid of an organization of collectors, is WASTE MANAGEMENT § 115A.94 authorized to collect from a defined geographic service area or areas some or all of the solid waste that is released by generators for collection. Sated_ L Local authority. A city or town may organize collection, after public notification as required in subdivision 4. A county may organize collection as provided in subdivision 5. Sahel. 3. General provisions. (a) The local government unit may organize collection as a municipal service or by ordinance, franchise, license, negotiated or bidded contract, or other means, using one or more collectors or an organization of collectors. (b) The local government unit may not establish or administer organized collection in a manner that impairs the preservation and development of recycling and markets for recyclable materials. The local government unit shall exempt recyclable materials from organized collection upon a showing by the generator or collector that the materials are or will be separated from mixed municipal solid waste by the generator, separately co]{ected, and delivered for reuse in their original form or for use in a manufacturing process. (a The kKal government unit shall invite and employ the assistance of interested persons, mcinding persons licensed to operate solid waste co0ection services in the local as government unit, is deve]oping plena -sad proposal+ for organized collection. and in establishing the organized co0ection system- . (d) Organized collection accomplished by contractor as a m®idpal service may.mrJnde a.regniremmt that all or any portion of. the cooed waste; except (i) recyclable materials and (� matenala that ere processed at a.resonree recovery facility at the rapacity m operation. at the time that the requirement. is ®posed,. be. delivered, W c waste facility identified.by, the local government unit In a district or county where a resource recovery taoLty lieu been designated by ordinance `under'section 115A.86: organized collection most conform to the requirements of the designation ordinance. Sabd. 4. Cities and towns: notice planning.' (a) At least 180 days before implement - rog an ordinance , franchise, license; contract or other means of organizing collection, a city or -.town, by resolution of the governing body, shall.annoance its-intent to organize collection and invite the participation of interested persons, including persons licensed to operate solid waste, collection services, in planning and establishing the organized eollec- Lion system (b) The resolution of intent must be adopted after- a public hearing. e hearing an be held at let two weeks after public notice and marled notice to perso ns known Y the city or town to be operating solid waste collection services m. the city or town_ The failure to give marled notice to persons or defect in the notice does not. invalidate the proceedings, provided a bona fide effort to comply with notice requirements has been made. (e1 During a 90-day period following the resolution of intent; the city or town shall deselop or supervise the development of plans or proposals for organized collection_ Dining this 9t}day P��B Pew. � �Y or town shall invite and empby the assistance of persona licensed. as of the data of the resolution of intent to operate solid waste eoUeetion eervicea in the sty or town. Failure of a licensed collector to participate m the ��Y P�nmg Pew. when the city or town has made a bona fide effort to provide the person. the opportunity to Participate, dow oot invalidate the pl:usnmg. process• (d) For 90 days after the date ending the planning period required under P�grsPh (c) the city or town shall discuss posmble organized collection arrangements with all licensed collectors operating in the ci ty or town who have expressed interest If the city or town is unable to agree on an organized collection arrangement with a majority of the licensed collectors who have expressed interest, or upon expiration of the 90 days, the city or town may propose implementation of an alternate method of organising collection u authorized in subdivision 3. (e) The city or town shall make specific findings that ( describe in detail the procedures it used to plan and to attempt implementation of organized collection through an arrangement with collectors who expressed interest; and 89 • § 115A.94 WASTE MANACEMLN -r (2) eva luate the Proposed Organised c°]leetioo method in light of at leant the following 1 d isplaceme nt achie leecttors ens organized collection goals Of the city or town: minimizing mal®g Process; and m °na Participation of all interested parties in the decision. ! (A Upon axnnuirtg efficiency in solid waste collection. PO request, the city or town shall provide maDed notice of all proceedings on the organization of collection in the city or town. ( 9) If the city or town and all the persons waste Collection Se aid to operate mixed municipal solid or t own ma rnce and d oing business in the city or town agree on the plan, the dry paragraph (a) implement the plan without regard to the 180 -day period specified in ! coun 9ubd. S. County organlzed eo0ection.(a) A county may by ordinance require dties ti towns a the county to organize collection Organized collection Ordinances of recyclable materials,- and towns to require the separation and separate collection of (2) specify the material to be separated and tbiat are ocontained m the coun t mee any P�ormance standards for ao ty solid waste plan " separation -cOun county may itself o+8anae collection collection ordina in anydty Or town that does aoteomply�vith m i ty mplemen4 as organized o nce adopted under this Subdivision, and the coup ay rrga�ed collection, . t h e .sonrce seParation.program Sad p Performance standards required a 9utid L ' rgaaized collection ordinance_ sabdivision'6, - a � o c is r iot: or_ pre .vented , Except as. 4 ' d'in (1Y required to ur8aaiu collcctio ii; or C2) Prevented from organizing co llection of solid waste or recyclable material ��thiiss l ion is lti ve conduct: (a} A p olities subdivision -that organizes colledion Section n authorized to engage in anticompetitive d conuct to the extent ne "arY to Plan and implement it chosen organized collection system sad is immure from ty Hader state laws relating to antitrust restraint of trade, unfair trade Practices, and other regulation of trade or commerce M er organization. of solid waste c Dectors, an individual collector, and their officers, collection under this' and agents who o cooperate with a political subdivision that 'organizes Pan and s a authorized to engn anticompetitive conduct to the extent Political Sa�bdi�viston vel the age organized co vision system, Provided that the entity; or person covered by the of each entity. An organization, relating antitrust, restraint of trade unfpair mime f rom liability understate law tt 'ade or commerce. trade practices, and.other regulation of 199 59Y�f 46 a1i'7an ��b7 Laws 1989. a 32S, if 26, Zl; L 600, i4 1; Lws 4 199L ws 1990, ; Motodel and Statutory Note government . 1989 Lea64tbn - . formerly ryd rewrote subd. which that co The 1989 amendment added sub L 6 Wuvtdm - �( (A) At lent 90 days before prnpnsing an ordi. collection is not required or rev d banchise. license. contract added subd 7 Prevented; and means O or other duet s authorized 90 1• g that anticompetitive con- resolution of �ovconeGtiO4 a city or town, by a g overning shall announ 19Klalatloa ft intent too rga - nize - ro0atl ce oa and invite l Pa "a of interested. the The 1990 amendment. in cub sad d sttab' " Mnons in planni stltuted " ' e 3, par. (c), sub- ) �h the organized collation system e lution I operate h or"opentlng -,sand fooljloowwm�ed attera pub' earinaf Intent must m t b � ed a waste collection services" inserted •,in tie "� held at least two weelu after public notice and a be mailed actin to peraoas !mown by the dry or a A • WASTE MANAGEMENT WASTE MANAGEMENT § 115A.95 thod in light of at least the following goals of the city or town; minimhffig town to be operating solid waste collection set LAWN 1990, C. 600, ¢ 9 provides in part that an interested Parties in the decision• vrm in the city or town. The failure to give N 1 and Z amending subds. S and 4 of this waste collection. mailed notice to Persons or defect i the notice seeder, am effective August 1. 1990, and apply does not invalidate the proceedings, pro a to cities, towns, and eomnes that initiate action tailed notice of an proceedings on the bom ride effort to eomplY with notice requim to organize solid waste eollecdos 00 or after that mesta has been made. l ed to operate mixed municipal solid 10 During the 90-day period following the 1991 leglslatlon resolution -Y or town agree on the plan, the city method of of intent, and before proposing a The 1991 amendment in solid. 4 added par. (g) to the 180daY Period specified in shah met hod organizing collection, the city or town regarding plan implementation without regard m lop or supervise the development of the 191)-day period.. plans or proposals for organized collection. Law Review Commentaries mty may by ordinance require cities "ld) Upon request, the city or town shall Organized. collection Ordinances' of "do mailed_ notice of subsequent proceedings Need for a en t in en expansion of the role of �9 n gs link government is environmental enforcement. - : • .: _.. thorgaoixation or , c ollection is ,iha., chi. or. - Beverly. Conerton and LeRoy,Paddoek, -16 wen. aration 'and separate collection 'of �'Niteheh l-Re.. 919 d URo . .> - - - USA-941. Scud waste; . -- requlred_eolleetion ice: staadarda for so Jc r 7 ^'Text o sectiorr tarts separation r 3 r r - r.. f .ochre Jufp J99L tt.._ (+!_Eithept as provided in paragraph (b), each a F or town that does mot tom ] ormore shall ensure - that ev LOWa with a poPubttion of 5,000 P Y With every residential housebA and buainev in the city or town has n this subdivision, and the county solid waste tw➢eetion service. To comply with' this, sectioa a city: in t e Cit i own. as h e:sourCe , Separation,program and ro °4 provide collection, or require by ordinance that every home hold'imdbminess ction ordinance . ;..: r .. bas etidct fin collec .tion! services: • Ab this section =must vevented. y '•~ Provide- forenfomment�; rs::.. - �, - ;n ,, — Except as provided'm °+ _ : •. use city or tows wr2h PoPulation:'of 5,000. or more`may exempt &'residential ltoasehold'.or busmess.in: th- city. or town -from the requirement to h ' 1 • cohecti0n e service if the household or business ensure iJiat an eavironm ata➢y waste ite,or recyclable ma rer,°t alternative is used sound ibdivision - that organizes collection I (C). To. the axtent practi cable, the costs incua b a rmpetitive coadoct to the extent must be incorporated into the collection y city or. town -under this'section collection system and is immune under this section by the City or tows or the enforcement mecbaniams adopted restraint of trade, unfair trade fives 1991, c 337, ¢ 4Z.. ._ ,.. idual co➢ector'aad their officers, 8lstorfnl and Statutory Note, ;..,. lolitical subdivision that'organizes 199I Legislation m anticompetitive conduct to the Ins 1991,'x337, ¢ " "91'LProvid io part tiara -. - . illeetioa system, Provided that the seetioo is effective Jnly 1, 1992 of each entity. An organization, - t from liability understate -law ractices,.and other regulation of VISIBLE COSTS .• -....• - 11SA.945. Visible solid solid waste magem naent Coats n ' �� 1990, c 44 1, , Z La as Any political subdivision that pprovides or solid waste shall, through a billing or others for the coati of collection or disposal of :�; end rewrote solid. 4 wh coats for each solid waste generator visible and obvious to t! a Prorated share of those ul:. ich Laws 1989. Lt SP, e. 1. art. 20, ¢ 9, eff. Oct. 4, 1989. geaerater. vt 90 days before proposing an ordi chase, license, Contract or other ;viidng collection, a city or town, by RECYCLABLE MATERIALS PROHIBITED FROM- CERTAIN FACILITIES the governing body, shall announce - of� � n and Invite the 115A.95.. Recyclable materials - ing the o persons In planriIng ... A resource recove fac➢i that is Cons .. .. ' . . rganiud cehection system. � waste to ene � � � Pns>�g waste, burning waste, or converting solution of intent moat be ado red a rgY or to materials for combustion, and is owned or operated by a public ;C hewing. hearing undo be gency or supppoorted by public funds or by obligations issued by a public agency, may Dot two weeks after public notice and accep recycla ble materials except for transfer to a i'ecycler, unless no other - person is to�na known by the City or Ong to accept the recyclable materials. - Amended by Lws 1967, a 348, ¢ 28. 91 MAR 24 '92 14:19 Ask THE EVEREST GROUP LTD March 23, 1992 G. Barry Anderson Arnold i McDowell 101 Park Place Hutchinson, Mt 55350 -2563 Re: Hutchinson Municipal Liquor Store Dear Barry: PAGE.002 Q ti MAR 1992 a RE(nV® m C'1 o N � B y Facs zile 1 -587 -4096 I am enclosing herewith a redraft of the proposed Purchase Agreement for the liquor store condominium unit. This redraft incorporates changes that were discussed at our recent meeting in Hutchinson. Revisions have been underscored for your convenience. since Gary Plotz is on vacation, he asked that I send the • redrafted Purchase Agreement directly to you, for review, distribution, and comment. Please call me with any thoughts, comments or questions you may have. It is my understanding, that the City Council will discuss the Purchase Agreement, and the proposed condominium transaction, at its March 24th meeting. It is my further understanding that on April list, there will be a special meeting to approve a final draft. We will plan on attending that meeting, and be prepared to address any questions that may arise. Please keep me advised as this matter progresses. Best regards, THE rREr ROUP, LTD. C. William Franke President Enclosures cc: Doug Driscoll • Greg Erickson w /enclosure CWF /jk 2M5 Long Lake Road P.O. Box 130190 a kosevl e, .1N S5113 /[1l\ "I i MAR 24 1 92 14:20 PAGE.003 '1: qdmj::. = W. H. -. N, A.Y This Purchase Agreement is made and entered into this day of , 1992, by and between the CIS HUTCHINS , a x nnesota municipal corporation, hereinafter referred to as Hutchinson, and ERICKSON'S DIVERSIFIED CORPORATION, a Wisconsin corporation, hereinafter referred to as Erickson's. Erickson's hereby sells and agrees to convey to Hutchinson, and Hutchinson hereby agrees to purchase, that certain parcel of real estate, located in the City of Hutchinson, County of McLeod, and State of Minnesota, legally described as Unit No. 2 Condominium No. , Erickson's Downtown Redevelopment Condomi�, together with all improvements constructed or to be constructed thereon and appurtenances thereunto belonging (hereinafter the "property "). 1:.�1f_: ' T yc A. Ike: The purchase price for the above - described property shall be established by reference to and shall equal the costs actually incurred by Erickson's to construct and provide Unit No. 2, together with appurtenant improvements, to Hutchinson, in the manner herein described. For the purposes of this Agreement, costs to be utilized in determining the purchase price shall include and be limited to the following: (i) a proportionate share of land acquisition costs, site preparation and improvement costs, building shell. ( including foundation, roof, walls and general building services and elements), and costs for professional services (including architectural, engineering, environmental, surveying, and legal for formation of condominium); and (ii) construction costs directly attributable to build out and finishing of Unit No. 2 and other costs directly attributable to =/n eumr r... n 0 MAR.24 1 92 14:20 PAGE.004 • said Unit No. 2. Hutchinson's proportionate share shall equal the percentage achieved by dividing the square footage of Unit No. 2 by the total square footage of all condominium units. The parties anticipate that the purchase price will be Three Hundred Thousand and no /100 ($300,000.00) Dollars, or less. In the event the purchase price, as determined above, exceeds or is estimated to exceed said sum, then either Hutchinson or Erickson's may terminate this Agreement by written notice to the other. The purchase price shall be estimated prior to commencement of construction and shall be determined prior to closing. In each instance Erickson's shall provide Hutchinson with a summary of the computation of the purchase price and complete back up material supporting the same. In addition, Hutchinson shall have the right to review, inspect and otherwise audit the books and records maintained by Erickson's and its contractor relating to the costs attributable to said Unit No. 2. • B. Payment: The purchase price shall be paid, in cash, on the date of closing. 3. CLOSING A. =1 The closing shall be held within fifteen (15) days following the substantial completion of the improvements to be constructed upon the property, at such place and time as the parties shall mutually agree. B. Closing Obligations At closing, Hutchinson shall pay the purchase price in the manner hereinbefore provided, and Erickson's shall deliver to Hutchinson, the following items, and the following duly executed documents, to -wit: (1) A general warranty Deed conveying marketable title to said property, subject only to the following exceptions: • 2 MAR 24 1 92 14:21 PAGE.00S a. Building and zoning laws, ordinances, • state and federal regulations; b. Reservations, restrictions, and ease- ments as set forth in the Declaration of Condominium No. , Erickson's Downtown Redevelopment Condominium; C. Utility and drainage easements currently of record; d. Reservations, restrictions, and condi- tions relating to the use and transfer of the property as hereinafter set forth. (2) A current Abstract of Title to the property, or a Torrens Certificate of Title. Erickson's shall pay all documentary stamps necessary for the recording of the Warranty Deed, and Hutchinson shall pay all other recording charges with respect thereto. Erickson's delivery of all of the documents above specified shall be a • condition precedent to the obligation of Hutchinson to close this transaction. Upon the delivery of the foregoing documents, Hutchinson shall pay the purchase price as hereinbefore stated. Erickson's agrees to deliver possession of the property not later than the date of closing, provided, that all conditions of this Agreement have been satisfied, or on such earlier date as the parties may agree. A. $'a; Erickson's shall pay or cause payment, at or before closing, of all the real estate taxes and installments of special assessments due and payable in the year preceding the year of closing and prior years, and a pro rata share of real estate taxes due and payable in the year of closing. A 3 MAR 24 '92 14:21 • S. Hutchinson C . Ericksonfs covenants and warrants as follows: A. Specific Warranties (1) Title 11 Erickson': warrants that it will have good and exclusive right, title and interest in and to the above described property, and has the right and authority to sell and assign the same. Ericksonls further warrants that all bills for work done or materials furnished to or in the improvement of the property vim have been paid in full by the date of closina- PAGE.006 Hutchinson shall have the obligation of paying a pro rata share of the real estate taxes due and payable in the year of closing, which proration shall be made on a daily basis to the date of closing, and shall have the obligation of paying all real estate taxes and installments of special assessments due and payable thereafter. the payment of property taxes or special assessments. Nothing herein contained shall be deemed to effect or alter any obligation of the parties under existing agreements between them with respect to Erickson•s warrants that all improvements on the property are entirely within the boundary lines of the property, and that there are no encroachments on the subject property. • Ericksonts warrants that: The property will fully comply with all existing local, state and federal rules, regulations and laws having application to the condition and ownership of the property, including, without limitation, health and safety and 4 ...w TI T111 P nI"r III -" MAR 24 1 92 14:04 PAGE.0Q2 • environmental ordinances, codes, and laws; srickson's has received no notice, and has no knowledge of any present code, ordinance, or zoning violations relating to the property from any governmental authority having jurisdiction over the property; Erickson's has or shall have, as of the date of closing, complied with all Landlord and Tenant laws of any governmental authority having jurisdiction over the property; Erickson's shall, if notice of any violation of the foregoing items is received by Erickson's prior to the date of closing, bear the expense of all work or action necessary to remove or correct such violation; and all licenses and permits needed to operate the property in the present manner, are in full force and effect, and, if assignable, will be assigned to Hutchinson, at closing, at no additional cost to Hutchinson. Erickson's warrants that during the period it has owned the property there has not been at • any time, any waste, substance or mixture or substances stored, disposed or spilled upon the property, of a nature or in such quantities which may be considered hazardous and therefore subject to or in violation of local, state or federal law or regulation requiring penalties, removal or other remedial action. Erickson's indemnifies and holds Hutchinson harmless from any cost, penalty, expense, loss or damage incurred as a result of the presence or removal of such regulated hazardous waste, substance or mixture of substances, that Erickson's placed or permitted to be placed on the property during the period of its ownership. B. Covenant Erickson's and Hutchinson acknowledge that between the date hereof and the date of closing, Erickson's will be creating Erickson's Downtown Redevelopment Condominium and constructing a building and certain improvements on the property and on the adjoining condominium property. In that connection, the parties agree that Erickson's • MAR 24 '92 14:06 PAGE.004 • consistent with the conceptual plans set forth in attached Exhibit C. Hutchinson agrees to cooperate with Erickson's in connection with the foregoing. C. Warranties Erickson's makes no warranties to Hutchinson relative to the building and improvementna to be constructed pursuant to the foregoing. However, Erickson's shall, at closing, assign to Hutchinson, all contractor, subcontractor and manufacturer warranties applicable to Unit No. 2. 7. TITLE. • Erickson's shall, within a reasonable time after approval of this Agreement, furnish an Abstract of Title, or a Registered Property Abstract certified to date to include proper searches covering bankruptcies, and state and Federal judgments and liens. Hutchinson shall be allowed thirty (30) days after receipt thereof for examination of said title and the making of any objections thereto, said objections to be made in writing or deemed to be waived. If any objections are so made Erickson's shall be allowed one hundred twenty (120) days to make such title marketable. Pending correction of title, the payments hereunder required shall be postponed, but upon correction of title and within 10 days after written notice to Hutchinson, the parties shall perform this Agreement according to its terms. If said title is not marketable and is not made so within one hundred twenty (120) days from the data of written objections thereto as above provided, this Agreement shall be null and void, at option of Hutchinson, and neither principal shall be liable for damages hereunder to the other principal. All money theretofore paid by Hutchinson shall be refunded. If the title to said property be found marketable or be so made within said time, and said Hutchinson shall default in any of the agreements and continue in default for a period of ten (10) days, then in that case Erickson's may terminate this Agreement and on such termination all the payments made upon this Agreement shall be forfeited by Hutchinson, and retained by Erickson's and Erickson's agent, if any, as their respective interests may appear, as liquidated damages, time being of the essence hereof. This provision shall not deprive either party of the right MAR 24 1 92 14:06 PAGE .00�5 17J s. 9. 10. of enforcing the specific performance of this Agreement provided such Agreement shall not be terminated as aforesaid, and provided action to enforce such specific performance shall be commenced within six months after such right of action shall arise. CASIIZsLTY In the event the property or any portion thereof is substantially damaged by any cause before the closing date, which damage materially affects the value of the property, then this Agreement shall remain in force and effect, Erickson "s shall diligently pursue correction and repair of any such damage and the time for performance and closing shall simply be extended to reflect delays Caused by any such casualty. ANTUSTUrM . Hutchinson and Erickson's also mutually agree that pro rata adjustments of rents, interest, insurance and city water, shall be made as of the date of closing. gESERVATI NS gESTR IONS AND CONDITIONS • Hutchinson and Erickson's agree that the property is transferred to Hutchinson subject to the following reservations, rights, restrictions and conditions: A. mm: The property may be used solely for the operation of a municipal off -sale liquor store. Hutchinson (or a successor in interest) shall not use, nor permit the use of the property or any portion thereof for any other purpose or purposes whatsoever, without first obtaining Erickson's written consent thereto. B. Erickson "s shall have the continuing option to reacquire the property from Hutchinson (or a successor in interest) on the fifth (5th) anniversary of the closing date of this transaction and on every third (3rd) anniversary of such date thereafter (i.e. eighth anniversary of closing date, eleventh anniversary of closing date, etc.). Such option may be exercised only by written notice from Erickson's to Hutchinson (or a • 8 • • • MAR 24 1 92 14:07 PAGE.006 successor in interest) given not less than eighteen (18) months prior to the date upon which such option to purchase will be exercised. In the event Erickson's exercises its option to reacquire the property from Hutchinson, such reacquisition shall be pursuant to the following terms and conditions: (i) If Hutchinson wishes to continue the municipal liquor store business in the Erickson's Downtown Redevelopment Condominium, then Erickson "s will, at its expense, expand the existing building to the south, to create a new condominium, to be known as Unit No. 3. Unit No. 3 will substantially conform to [flit No. 2, provided, however, that Hutchinson shall be responsible for .necessary furnishing and fixturing of Unit No. 3. Following completion of the work of expansion, Erickson's will convey Unit No. 3 to Hutchinson in exchange for Unit No. 2 and Hutchinson shall convey Unit No. 2 to Erickson's in exchange for said Unit No. 3. In such event, the parties agree that the condominium documents shall be modified to incorporate Unit No. 3 and to equitably adjust percentage shares of unit owners, all in accordance with the provisions of the condominium Declaration. If Hutchinson determines that it does not wish to continue in the municipal liquor store business, then Erickson "s shall pay Hutchinson a price for Unit No. 2 equal to the purchase price paid by Hutchinson to Erickson's for Unit No. 2. (iii) If Hutchinson determines that it will continue in the municipal liquor store business but wishes to relocate operations to a different site, then Erickson's shall pay Hutchinson a purchase price for Unit No. 2 equal to seventy -five percent (754) of the purchase price paid by Hutchinson to Erickson's for said Unit No. 2. 9 MAR 24 1 92 14:08 PAGE.007 E (iv) If Erickson's exercises its option to reacquire the property from Hutchinson pursuant to subsection (i) above, and thereafter wishes to again expand and to reacquire Unit No. 3 from Hutchinson on one of the option dates hereinbefore set forth, Erickson's may do so, consistent with the provisions applicable to the exercise of said option, and the price to be paid by Erickson'e to Hutchinson, shall equal one hundred percent (1004) of the price paid by Hutchinson to Erickson's for Unit No. 2. At closing, Erickson's shall pay the purchase price above atated or convey marketab tle to Unit No. 3 to Hutc��on an c inson s a deliver such duly executed document■ of conveyance as may be necessary to convey zarketable title to the property to Erickson's free and clear of all liens and encumbrances and subject only to the exceptions to title existing as of the date Hutchinson acquired the property from Erickson's. - Possession of the property shall be delivered to Erickson's on the Hate of closing. The property shall be delivered in a broom clean condition, free of all personal property, debris and hazardous substances. C. Riaht of Refusal: The property may be offered for sale and sold by Hutchinson, provided, however, that Erickson's shall have a perpetual right of refusal with respect to any sale of the property either by Hutchinson or any successor in interest. If Hutchinson (or a successor in interest) shall receive a bona fide offer to purchase the property, which offer is acceptable, prior to acceptance thereof, Hutchinson (or a successor in interest) shall give Erickson's, with respect to each such offer, written notice thereof, which notice shall include a copy of the offer. Following delivery of said notice, Erickson "s shall have 001 days within which to elect to purchase the property on and pursuant to the terms and conditions of said offer. Erickson's • shall give written notice of its election to 10 MAR 24 1 92 14:08 PAGE.008 • purchase the property within the time period set forth above. If Erickson'a fails to exercise its right of refusal as aforesaid, then Hutchinson (or a successor in interest) may accept the bona fide offer and sell the property pursuant thereto. ► .;. . , Hutchinson shall have the right to require Erickson's to repurchase the property in the event Hutchinson is required to withdraw from the liquor store business by reason of a change in state law applicable to operation of liquor stores by municipalities. In such instance, Hutchinson may exercise its option upon not less than eighteen (18) months prior written notice to Erickson's. In the event said option is exercised, the purchase price shall equal fifty mercent (50 %) of Closing, conveyance and delivery of possession on a sale resulting from Hutchinson's exercise of its option, shall be effectuated in the manner • described in Subsection 10B above. E. Leasinc Hutchinson (or a successor in interest) may not lease the property or any portion thereof without, in each instance, obtaining Erickson " s prior written consent thereto, which consent shall not be unreasonably withheld. The foregoing reservations, restrictions and easements shall be memorialized in a written instrument, in recordable form, to be executed by the parties at closing, and thereafter Erickson's shall record the same. All obligations of Hutchinson under this Agreement are subject to and contingent upon Erickson's and Hutchinson proceeding with development of the real estate to be .covered by the condominium, under and pursuant to the Development Agreement entered into between the parties on February 22, 1992. L 11 MAR 24 1 92 14:09 PAGE.009 n U In the event the foregoing condition is not satisfied on or before closing, then this Agreement shall be null and void, and the earnest money herein paid shall be refunded to Hutchinson forthwith. All statements contained in any financial materials or other instruments delivered by or on behalf of Erickson's pursuant hereto or in connection with the transaction contemplated hereby, shall be deemed representations and warranties by Erickson's hereunder. All representations, warranties, and agreements made by Erickson's in this Agreement or pursuant hereto shall be deemed joint and several, except as otherwise expressly stated, and shall survive closing. :.4-,►• " This Agreement shall be binding upon and shall inure tc the benefit of the respective parties and their heirs, successors and assigns. 14. DEFAULT In the event Hutchinson shall default in the • performance of its obligations hereunder, and Erickson's shall have performed Or tendered performance of all of its obligations hereunder, and said default shall continue for a period of ten (10) days, then, in that event, Erickson's shall be entitled to terminate this Agreement and on such termination, all payments made upon this Agreement shall be forfeited by Hutchinson and retained by Erickson "s and Erickson's agent, if any, as liquidated damages, time being of the essence hereof. This provision shall not deprive either party of the right of enforcing the specific performance of this Agreement provided such Agreement shall not be terminated as aforesaid, and provided action to enforce such specific performance shall be commenced within six months after such right of action shall arise. 15. ENTIRE AGREEMENT All understandings and agreements heretofore made between the parties hereto are merged in this Agreement, which alone fully and completely expresses their agreement. This Agreement is entered into after full investigation, neither party relying on ay • 12 • MAR 24 1 92 14:09 statement or representation not Agreement. 16. AcCUMCE OF PtM=ASE AMUMM T PAGE.010 embodied in this This Purchase Agreement has been signed by Hutchinson and submitted to Erickson's as of the date first above written. In the event Erickson's shall fail to accept this Purchase Agreement, by affixing its signature hereunto, and by notifying Hutchinson of such acceptance, on or before 1992, this Purchase Agreement shall be null and void and of no force and effect, and the earnest money herein paid shall be refunded to Hutchinson forthwith. IN WITNESS WHEREOF, the parties have executed this Purchase Agreement the date and year indicated below. Ll E BUYER CITY OF HUTCHINSON By: Its By: Its Date: SELLER ERICKSON'S DIVERSIFIED CORPORATION By: Its By: Its Date: 13 MAR 24 1 92 14:10 MMIBIT A LEGAL DESCRIPTION OF ENTIRE CONDOMINIUM PROPERTY Lots 1, 2, 3, 8, 9, 10, and the North one -half of Lot 4, except the South 20 feat of the said North one -half of Lot 4, all in Block 14, in the Townsite of Hutchinson, South half, according to the plat thereof on file and of record in the Office of the Register of Deeds in and for County of McLeod, State of Minnesota, together with the North 211 feet of the alley in Block 14, which alley has been vacated by the City of Hutchinson. A Lots 1, 2, 3, 4, and 5, Block 48; Jefferson Street between First Avenue Northeast and Washington Avenue (to be vacated by the City); Lots 1 -10; Block 47 (including the alley between First Avenue Northeast and Washington Avenue, to be vacated by the City); that part of Adams Street as platted in the townsite of Hutchinson, North Half, according to the recorded plat thereof, described as follows: Beginning at the northeast corner of Block 47 in said plat; thence south 0 degrees 38 minutes 02 seconds, assumed bearing, along the east line of said Block 47 a distance of 222.98 feet; thence north 15 degrees 33 minutes 30 seconds east, a distance of 214.14 feet; thence north 74 degrees 26 minutes 30 seconds • west, a distance of 62.18 feet to the point of beginning; all of said property being located within the original plat of the North Half of Hutchinson, in McLeod County, Minnesota; and that portion of the alley in Block 48 between the North line of said Block 48 and a line 12 feet South of the North line of Lot 7 in Block 48, and the East 8.25 feet of that portion of the alley extending between the South line of Block 48 and a line 12 feet South of the North line of Lot 7, Block 48 (to be vacated by the City); all of said property being located within the original plat of the North half of Hutchinson, in McLeod County, Minnesota. PAGE. 011 • 14 • • lJ MAR 24 1 92 14:11 EMBIT B Ipl:) gqP `: TN#1 !Y ERIC SON'S DOWNTOWN REDEVELOPMENT CONDOMINIUM 15 PAGE. 012 MAR 24 '92 14:11 PAGE. 0la A EOCHIHIT C DESCRIPTION OF BUILDING The building to be constructed as part of the project will be a single -story Type IIN slab on grade structure with exterior walls constructed of load- bearing decorative concrete masonry units, with an interior post and beam structural system, steel roof deck and canopy entrance. The building footprint will have an area of approximately 46,720 square feet, consisting of an approximate 5,720 square foot municipal liquor store and a Festival Foods grocery store of approximately 41,000 square feet. The liquor store space will have a separate exterior entrance and, in addition, an interior entry /connection to the grocery store. The building will be served by a truck loading dock and loading service area located in the rear of the building. The site improvements developed in connection with the building shall include a landscaped berm area at the rear of the building, along the west right of way of Adams Street, with a minimum berm height of three (3) feet above the elevation of Adams Street and appropriate landscape plantings to reasonably screen the truck service area from public view. is 40 16 MAR 24 1 92 14:12 PAGE. 014 1414 4 0 - 114� DESCRIPTION OF IMPROVEMENTS TO UNIT NO. 2 ERICKSON "S WORK Unit No. 2 of completed in specifications: DIMENSIONS: Frontage: Area: As measured store front rear wall center line WASHROOM Depth: by Erickson's Architect from the outside of the (or lease line indicated) and the outside of the (or center line if not outside wall) and the of the demising partitions. Erickson's will provide one (1) washroom as required by applicable codes and regulations for a retail store and for no other requirements, complete with necessary plumbing fixtures (one water closet and one sink), water heated electrically, as required by code, toilet paper holder, mirror, exhaust fan, light, suspended 2' x 4' acoustical ceiling, flooring installed, walls to be gypsum board taped and sanded ready for application of Hutchinson's wall covering, wainscoting as required by code, hollow metal door with hardware and all electrical hookups for washroom light, fan, and water heater. Washroom typically shall be located at the rear of the Premises or as shown on the blockout drawings. Additional washroom and /or plumbing requirements will be Hutchinson's responsibility. • the Condominium shall be constructed and accordance with the following outline 17 MAR 24 1 92 14:12 PAGE .01 -5 • EXHIBIT D LEASEHOLD CONSTRUCTION AND IMPROVEMENTS (contd.) CEILING SYSTEM ERICKSON'S WORK Erickson's will provide a suspended T -bar ceiling system with 2' x 4' lay -in acoustical tile or an allowance of $.80 per square foot for Premises ceiling on a "single plane basis ". Ceiling height to be 10 feet. Any additional cost of installing the ceiling system caused by partition walls or other interior tenant improvements shall be borne by Hutchinson. STORE FRONT The store front shall be 1" thick clear insulating glass and prefinished metal panels set in an anodized aluminum thermal break frame system. One tempered clear glass and anodized aluminum entrance door to be provided by Erickson's. DEMISING WALLS Tenant demising walls (party walls) shall typically be 5/8" thick Type X gypsum board on 4" standard steel studs at 16" centers, typically. Hutchinson shall verify actual stud location. Gypsum board will be taped and sanded, ready for finishing by Hutchinson. Where the steel studs are to carry any wall mounted equipment required by Hutchinson, the costs to reinforce the wall to carry the additional loads to be borne by Hutchinson. one side of each demising wall above the ceiling plane will be carried to underside of roof deck by Erickson's. PARTITIONS WITHIN PREMISES The washroom partitions are the only partitions within the Premises provided by Erickson's. All other interior partitions are the responsibility of Hutchinson. Where required as a second means of egress from Premises and as shown on the blockout drawings, a rear door with hardware will be provided by Erickson's. Additional or larger doors or openings will be provided at Hutchinson'$ cost, installed by Erickson's contractor. • 0 is • MM 24 1 92 14:13 EXHIBIT D LEASEHOLD CONSTRUCTION AND IMPROVEMENTS ERICKSON'S WORK (contd.) DECORATING PAGE. 016 All decorating in the Premises to be provided by Hutchinson. FLOORING Sealed concrete ready for the application of floor covering by Hutchinson. Hutchinson shall install floor covering, satisfactory to Erickson's. SIGNS • All signs to be provided by Hutchinson shall be in accordance with Erickson "s general sign criteria and the local sign ordinance of the City of Hutchinson. The quality and design of the sign must be approved in writing by Erickson "s prior to Hutchinson installation. The fascia signage will be wired direct to Hutchinson's electrical panel by Hutchinson's contractor. Erickson's shall provide a J -Box in this fascia for Hutchinson's signage. HEATING AND AIR CONDITIONING Erickson's will provide the Premises with a heating and air conditioning system. The quality and capacity shall be such as to provide comfortable conditions in the Premises in accordance with generally accepted Minnesota standards. Erickson's will provide the heating and air conditioning equipment on an open store plan basis. This equipment shall include; (1) the rooftop unit, (2) the drop to the Premises, (3) the main distribution trunk, (a) the thermostat, wired directly to Hutchinson's panel. The cost of any additional lateral ducts, any dampers and diffusers, and any cutting and patching of the roof membrane will be borne by Hutchinson. In order to insure that all warranties remain intact, this work shall be carried out by Erickson's contractor, at Hutchinson's sole expense, based upon written estimates approved in writing by Hutchinson, prior to the commencement of this work. If additional electrical capacities are required for lighting, Hutchinson shall bear the cost of additional air conditioning required to handle the increased load. • 19 MAR 24 1 92 14:13 PAGE.017 7 EIMBIT D LEASEHOLD CONSTRUCTION AND INPROVEKM?TS ERICKSON'S woRK (contd.) Erickson's will (1) bring the power supply to the Premises up to and including an emptylap_ AMP, zabA of distribution panel box, (2) provide one Z' x 4' fluorescent lighting fixture for every one hundred (100) square feet of space within the Premises. Additional electrical requirements will be paid for by Hutchinson. Hutchinson washroom light, exhaust fan and water heater will be connected to Hutchinson's panel by Erickson's. 4 0 :I40 rZOWTOT The Premises shall be provided with an automatic fire protection sprinkler system by Erickson's to meet current applicable building codes and standards. Coverage will be on a "single horizontal plane basis" to meet Uniform Building Code and National Fire Protection Association requirements. The cost of any change to the basic system • due to addition of partitions, ceiling height changes, bulkheads, high storage shelving, etc., will be borne by Hutchinson, and shall be carried out by Erickson's at Hutchinson's expense. Erickson's will provide one telephone conduit to Hutchinson's space. OTHER WORK The space provided by Erickson': is described above. The cost of any changes or additions to the above will be borne by Hutchinson and may be carried out by a contractor or contractors of Hutchinson': choice, subject to the written approval of the changes, additions and the contractor by Erickson's. other contractors working on the Premises must cooperate with Erickson's project manager, apply and pay for their own building permits and fees, and conform to all applicable State and local building codes. While other contractors may perform work on the Premises on behalf of Hutchinson, the following areas of work must be • performed by the contractor of Erickson's, and will be MAR 24 '92 14:14 • (contd.) EXHIBIT D LEASEHOLD CONSTRUCTION AND I"ROVZMMN'TS ERICKSON'S WORK PAGE.018 charged back to Hutchinson on the basis of prior estimates approved in writing Hutchinson: Structural alterations, including but not liz byy ted to: Breaking out concrete floors cutting and patching the roof membrane Alterations to exterior walls and store front Heating and air conditioning system installation or changes Plumbing and sprinkler system changes and additions Electrical feeder changes. • • 21 ' FOR YOUR INFORMATION ARNOLD & MCDOWELL DAVID H. ARNOLD ATTORNEYS AT LAW OF COUEEEL • CLINT D.WDORau PIA CE IOI PARR TLIAL.E W.CAHERON STEVEN A.ANDEH90N RATNOND C. LALLIER O.HARRT ANDERSON HuTCHINSON. MINNESOTA 35330 -2563 PAUL N.EEOICH STEVEN S. BO z (612) 587-7575 CHARLES B. CARNICAALL" AURA X. TRETLND DAVID A. BRUEOOENANN FAX (611) 307-4096 91561 CEDAR LA[£ ROAD PAUL D. DOVE •• NINNEAPOI]B, NINNE90TA 55416 345 -0000 8£9IDENT AT"I'08NEY JOSEPH R.PAIEN EITT F RN "LL FREE BOO -343 -4343 JAREE OTLET O. BARRY ANDERSON lAA (612)345-1!93 RICHARD O. YCOEE TIUOTHY W.FAFIN9EI March 29, 1992 501 SOUTH FOURTH STREET HART E. BORROC[9 PRINCETON, YDlNESDTA 55371 (611) 3159-2214 CATHRYN D. HEHER FAA (61113159-5506 Mr. Donald Steffen Hutchinson Elk's, Inc. CERTIFIED MAIL 225 Washington Avenue East RETURN RECEIPT REQUESTED ^: Hutchinson, Mn. 55350 Re: Hutchinson Downtown Development - Phase II Our File No. 3244 -91046 Dear Mr. Steffen: As you know, this office represents the City of Hutchinson and the Hutchinson Community Development Corporation (HCDC). This letter will serve as official notice of the intention of HCDC • and the City of Hutchinson to exercise the option rights granted under the contract between the Elks and HCDC. If you have not previously done so, please make arrangements to have the Abstract of Title to the property delivered to our office. As I am sure you are aware, the option sets a closing date, if the parties do not otherwise agree, of 45 days after the date of this letter. If you have made alternative arrangements and are prepared to move earlier than the 45 days specified in the agreement, the closing date could certainly be advanced. The City does have some limited flexibility in delaying the closing, but you should promptly communicate any problems you anticipate in that regard. We do look forward to working with you as we move this matter along to a successful conclusion. Thank you. Very t ours, AR DOWEL ry nder on GBA:lm CC Robert Peterson • Gary Plotz JpQhn Bernhagen maul Ackland 'CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LW SPECIALIST BY THE NIl ESOTA STATE BAR ASSOCIATION . DAVID B. ARNOLD GARY D. Ift O LL STEVRN A. ANDERSON O. HARRY ANDERSON' STEVEN S. HOBE LAURA E. FRETLAND DAVID A. DHIIE006MANN PAM D. BOVE" JOSEPH M. PAIEMENT JAMES UTLEY RICHARD O. M[OEE TIMOTHY W. PAPINSR MART E. HORHOCES CATHRYN D. RE HER ARNOLD & MCDOWELL ATTORNEYS AT LAW 101 PARE PLACE HUTCHIN9oN, MINNESOTA. 55350 -2363 of c W- AR N WILLIAM CWILLIAM w.cAMaeox G. Barry RAYMOND C. I.ALLIEN GBA:lm PAUL M. BEOICH CC Gary CHARLES R.CARMICHAEL" John (612) 587 -7575 FAX (617) 587 -4096 RESIDRiT ATTORNEY O. HARRY ANDERSON Sam CEDAR LIE ROAD MINNEAPOLIS,MINNESOTA 55416 (am) 545 -9000 MN TOLL FREE 600 -34'1 -4545 FAX ( 619) 545 -1793 March 29, 1992 501 SOUTH FOURTH STREET PRINCETON, MINNEROiA 55371 (619) 369 -2914 FAX (612) 389-5506 Mr. Myron E. Wigen, Jr. Wigen Motor Company CERTIFIED MAIL 525 Highway 7 East RETURN RECEIPT REQUESTED Hutchinson, Mn. 55350 Re: Hutchinson Downtown Development - Phase II Our File No. 3244 -91046 Dear Mr. Wigen: As you know, this office represents the City of Hutchinson and the Hutchinson Community Development Corporation (HCDC). This letter will serve as official notice of the intention of HCDC and the City of Hutchinson to exercise the option rights granted • under the contract between Myron E. Wigen, Jr. and Vivian Wigen and HCDC. If you have not previously done so, please make arrangements to have the Abstract of Title to the property delivered to our office. I understand you have had a chance to visit with City officials regarding the possibility of closing this transaction earlier than the 45 days following the date of this letter as would be the case under the agreement. The City would be interested in closing this transaction more quickly and you should not hesitate to contact either the City Administrator or the undersigned regarding those arrangements. We look forward to working with you as we move this matter along to a successful conclusion. Best personal regards. Very trul your , AR N cDO L G. Barry Anderson GBA:lm CC Gary Plotz John Bernhagen Paul Ackland • 'CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE DAR ASSOCIATION 'CERTIFIED AN A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION ARNOLD & MCDOWELL ATTORNEYS AT LAW 101 PARE PLACE HUTCH1NSoN, MINNESOTA 55350 -2563 (612) 587 -7575 FAX (619) 667-4099 RESIDENT ATTORNEY O -BARRY ANDERSON Mr. Joe Krammer, Jr. Joe Krammer Enterprises, Inc. c/o The Litchfield Laundromat 145 South Holcombe Litchfield, Mn. 55355 Re: Hutchinson Downtown Development - Phase II Our File No. 3244 -91046 OF COUfIEL WILLIAM W.CAIIERON HAYMOND C. LALLI£R PAUL X.BEOICH CHARLES R.CARIIICHAEL 3661 CEDAR LANE ROAD MINNEAPOLIS, MINNE A 55416 (619) 545-9000 MN TOLL TREE 600 - 340 -4315 TAN (619)343 -IT93 501 SOUTH FOURTH STREET PRINCETON, MINNESO 53371 (619) 369 -9914 FAX (619) 369-5506 Dear Joe: • I am pleased to report to you that the City Council has exercised all remaining options and insofar as your property is concerned, the City is proceeding ahead. Accordingly, the City Council has authorized this office to pay the compensation previously agreed upon for relocation benefits and any compensation due you for the balance of the lease. I would propose that we close this transaction on Friday, April 3, 1992 at 1:30 P.M. at this office. The original agreement called for your departure from the premises on or about May 1, 1992, but the City would have no objection to allowing you to remain and to continue to operate the business until May 11, 1992. We do expect beginning about May 11, however, that demolition and other activities will likely commence. You are reminded of the requirement that you provide liability coverage on this premises up to and including May 11, 1992. I previously provided to you a revised draft of the agreement, but for your information, I am enclosing another copy of the same. • I CERTIPIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION II CERTITIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION DAVID B A ' • OWNS D. MCDOrELL EL ETNVEN A.ANDERSON O. BANNT ANDERSON' STEVEN N. HUGE IADRA E.PHETLAND DAVID A. B$U£OOEMANN PAM D. DOVE I * JOSEPH M. PAIEMENT JAMES DTLET RICHARD O. MCOEE TIMOTHY W. TATINSEI MART E. HOHHOCNS CATHRYN D. REBER March 29, 1992 ARNOLD & MCDOWELL ATTORNEYS AT LAW 101 PARE PLACE HUTCH1NSoN, MINNESOTA 55350 -2563 (612) 587 -7575 FAX (619) 667-4099 RESIDENT ATTORNEY O -BARRY ANDERSON Mr. Joe Krammer, Jr. Joe Krammer Enterprises, Inc. c/o The Litchfield Laundromat 145 South Holcombe Litchfield, Mn. 55355 Re: Hutchinson Downtown Development - Phase II Our File No. 3244 -91046 OF COUfIEL WILLIAM W.CAIIERON HAYMOND C. LALLI£R PAUL X.BEOICH CHARLES R.CARIIICHAEL 3661 CEDAR LANE ROAD MINNEAPOLIS, MINNE A 55416 (619) 545-9000 MN TOLL TREE 600 - 340 -4315 TAN (619)343 -IT93 501 SOUTH FOURTH STREET PRINCETON, MINNESO 53371 (619) 369 -9914 FAX (619) 369-5506 Dear Joe: • I am pleased to report to you that the City Council has exercised all remaining options and insofar as your property is concerned, the City is proceeding ahead. Accordingly, the City Council has authorized this office to pay the compensation previously agreed upon for relocation benefits and any compensation due you for the balance of the lease. I would propose that we close this transaction on Friday, April 3, 1992 at 1:30 P.M. at this office. The original agreement called for your departure from the premises on or about May 1, 1992, but the City would have no objection to allowing you to remain and to continue to operate the business until May 11, 1992. We do expect beginning about May 11, however, that demolition and other activities will likely commence. You are reminded of the requirement that you provide liability coverage on this premises up to and including May 11, 1992. I previously provided to you a revised draft of the agreement, but for your information, I am enclosing another copy of the same. • I CERTIPIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION II CERTITIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION Mr. Joe Krammer, Jr. March 29, 1992 Page 2 I picked Friday as the most convenient day from the standpoint of my schedule and if it poses a problem for you, do not hesitate to contact me and other arrangements can be made. I look forward to seeing you again. Best regards. Very • E • GBA:lm Enclosure CC Gary Plotz John Bernhagen Paul Ackland • DAVED E. ARNOLD uARY D. McDO EL STEVEII A. ANDERSON O. BARRY ANDERSON' STEVEN S. BODE LAURA E. PRETLAND DAVID A. BRUEOOEMANN PAUL D. DOV E" JOSEPH M. PAIEMENT JAMES UTLEY RICBARD O. MCGEE TIMOYRY N. FAFINSXI RAHY E. RORROCES CATRRYN D. REBER ARNOLD & MCDOWELL ATToRNEYs AT LAW 101 P ART{ PLACE HUTCHINsoN, MINNESOTA 55350 -2563 (612) 587 -7575 FAX 1�) 581 -4096 RESIDENT ATTORNEY O. BARRY ANDERSON March 29, 1992 Ms. Evelyn Dobratz 126 First Avenue N.E. Hutchinson, Mn. 55350 Re: Hutchinson Downtown Development - Phase II Our File No. 3244 -91046 Dear Ms. Dobratz: OF ODUNEEL wlL " M. CAM BROW RAYMOND C. LALLIER PAUL X.BEOICH CHARLES R.CARMICBAZL" 5681 CEDAR LEE ROAD MINNEAMUS I MINNESOTA 55416 (619) 545-9000 MN TOLL TREE 800-343 -454.9 TAX(B19)545-IT93 501 SOUTH FOURTH STREET FRINCETON. MINN6 S5 n (619) 369-9914 FAX (619) 369 -5506 As you know, this office represents the City of Hutchinson and the Hutchinson Community Development Corporation (HCDC). This letter will serve as official notice of the intention of HCDC • and the City of Hutchinson to exercise the option rights granted under the contract between Evelyn Dobratz and HCDC. If you have not previously done so, please make arrangements to have the Abstract of Title to the property delivered to our office. Under the terms of the agreement between yourself and the City, the closing date will be 45 days from the date of this correspondence unless you and the City otherwise agree. I believe the City would be willing to move the closing up if that would be helpful to you. Please let us know what your wishes are in this respect. We look forward to working with you as we bring this matter to a successful conclusion. Best personal gards. Very t urs, WELL A G. Barry Anderson GBA:lm CC Paul Ackland Gary Plotz • John Bernhagen 'CERTIFIED AS A CIVIL TRIAL SPECIALIST BY TEE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAw SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION