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HomeMy WebLinkAbout05-27-1997RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 13 - May 27, 1997 4969 Agenda Item A-1 President John Hunziker called the meeting to order at 5:00 p.m. with the following members present: Councilmembers Mack Evans, Ed Hruska, Marcia Marcoux, Jean McConnell, David Senjem and Walter Stobaugh. E-1 City Attorney Terry Adkins explained that at the May 19, 1997, the City Council approved the Development Assistant Agreement and Purchase Agreement for the Kreofsky Chicago and Great Western Depot project. He explained that the City provided Kreofsky's attorney with an abstract of title for the property and their attorney identified several problems in the chain of title and a small strip of land that is not covered in the title. Mr. Adkins stated that due to these identified problems, the closing of the Depot project that was scheduled for May 21, 1997, did not take place and has been postponed. He stated that Kreofsky has asked the City to amend the Purchase Agreement to require the City to correct the title problems by going through a registration of land process which is also called a torrens registration proceeding. Mr. Adkins explained that this is a court process where the court will provide clear title to the property if no claims to the property are brought forward. He stated that there is some expense with the process but noted that a lot of the things involved with the process should be able to be handled in house. He explained that the process could get expensive if someone claims title and ownership to that small strip of land and the City has to either purchase the land or go through the condemnation process to get the land. Mr. Adkins stated that there is some risk but the risk is minimal. He stated that someone may have title to that strip of land even though it is unlikely. Mr. Adkins stated that the City Council is being asked to approve an amendment to the Purchase Agreement to initiate the registration of land process/torrens registration proceeding. President Hunziker asked how long this process would take. City Attorney Terry Adkins answered that it would take most of the summer as notices have to be sent out, etc. Councilmember McConnell asked who owned this property before the City. It was noted that there was an assemblage of three different owners or partners. Councilmember Stobaugh asked if there are any liens on the property. City Attorney Terry Adkins answered no. Councilmember Senjem asked if a Phase I Environmental Study was completed on this property. Doug Knott, City Administration, answered yes and noted that it came out clean. Councilmember Senjem asked if staff is comfortable with the language in the amendment. City Attorney Terry Adkins stated that the City is promising to provide Kreofsky with clear title to the property. Mr. Adkins noted that the City is taking some risk by promising this. He noted that the risk is low but it does exist. He explained that if someone has title to the small strip of land, the City would have to either purchase or condemn that land. Councilmember Hruska stated that basically the City is agreeing to give Kreofsky the land and saying that if there are any problems with the title, the City will take r- RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL 4970 CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 13 - May 27, 1997 Agenda Item care of them so the project can go ahead. City Attorney Terry Adkins answered yes. Councilmembers Senjem moved, Stobaugh seconded, to Adopt Resolution 288-97 amending the Purchase Agreement for the Depot project to require that the City clear the title to the parcel through registration of the property and authorizing the City Attorney to initiate the appropriate legal proceeding on behalf of the City to register the property. Ayes (7), Nays (0). Motion carried. Having no further business, Councilmembers Hruska moved, Marcoux seconded, to adjourn the meeting. Ayes (7), Nays (0). Motion carried. Special Deputy City Clerk F-,