120604 EDA CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
December 6, 2004
6:50 p.m.
President Don Collier
Commissioner Doug Andersen
Commissioner Sharon Cassen
Commissioner Mary Gwin-Lenth
Commissioner Steve Sommer
1. Call to order
2. Roll call
3. Resolution approving settlement agreement for eminent domain proceeding to
acquire property at 7809 Bass Lake Road - 20~20 Eye Clinic taking (improvement
project no. 716)
4. Adjournment
EDA
! ro , cr os
Originating Department Approved for Agenda Agenda Section
Community Development '('~'~ ') 12-6-04 EDA
~i ~ Item No.
By: Kirk McDonald, Director of CD
Shawn Siders, CD Specialist By: 3
A RESOLUTION APPROVING SETTLEMENT AGREEMENT FOR EMINENT DOMAIN PROCEEDING TO
ACQUIRE PROPERTY AT 7809 BASS LAKE ROAD - 20/20 EYE CLINIC TAKING (IMPROVEMENT
PROJECT NO. 716)
REQUESTED ACTION
Staff requests that the EDA approve the enclosed resolution approving the settlement agreement for Eminent
Domain Proceeding to acquire the property located at 7809 Bass Lake Road (formerly 20/20 Eye Clinic).
POLICY/PAST PRACTICE
City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential properties
within the city.
BACKGROUND
At its closed meeting of November 22, 2004, the EDA authorized the City Attorney to file an appeal on behalf
of the EDA regarding the Commissioners Award for the 20/20 Eye Clinic in the amount of $300,000.
Following the appeal, the attorney for the property owners informed the City Attorney that his clients would
accept a reduction in the Commissioners Award to $280,000. As previously indicated, this is a $20,000
reduction from the Commissioners Award. The property owners have also paid the 2004 real estate taxes in
the amount of $5,398.22 which will further reduce the EDA cost in acquiring this property.
The City Attorney has provided the enclosed correspondence which indicates $280,000 is a fair price for the
property. If the enclosed resolution is approved, this matter will be settled.
REQUEST FOR ACTION:
Staff recommends the EDA approve the enclosed resolution prior to the City Council meeting on December 6,
2004.
ATTACHMENTS:
City Attorney Correspondence (December 1, 2004)
Settlement Agreement
Resolution
MOTION BY ~ ~, ~ SECOND BY ~
I: \ RFA \ PLANNING \ Housin~ \ 7809 \ SettlementA~reement.doc
JENSEN & SONDRALL, P.A.
Attorneys At Law
8525 EDINBROOK CROSSING, STE. 201
BROOKLYN PARK, MINNESOTA 55443-1968
TELEPHONE (763) 424-8811 · TELEFAX (763) 493-5193
DOUGLAS j. DEBNER2 e-mail law~j ensen-sondrall.com
GORDON L. JENSEN~
December 1, 2004
GLEN A. NORTON
STEVZN A. SOND~L
STACY A. WOODS VIA E-MAIL TO ddonahue(~ci.new-hope.mn,n.q
AND BY REGULAR U.S. MAIL
or COUNSEL Daniel J. Donahue
LORENS Q. BRYNESTAD City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Re: Resolution and Settlement Agreement
20/20 Eye CliMe Condemnation
Our File No.: 99.53074
Dear Dan:
Please find enclosed a Resolution Approving Settlement Agreement For Eminent Domain
Proceeding To Acquire Property At 7809 Bass Lake Road and the Settlement Agreement
attached to the resolution as Exhibit A. I would like the EDA to take action on this resolution if
possible before the Council meeting on December 6, 2004.
As we discussed, after our closed meeting on November 22, 2004, I filed the appeal from the
Commissioners Award on the 20/20 Eye Clinic condemnation for the property at 7809 Bass Lake
Road. Subsequent to filing the appeal, the attorney for the property owners informed his clients
would accept the reduction to $280,000.00. This is a $20,000.00 reduction from the Commissioners
Award. Also, the owners have paid the 2004 real estate taxes amounting to $5,398.22 further
reducing our cost to acquire this property. As I indicated in the Memorandum I provided to the
EDA at our November 22nd closed meeting, $280,000.00 is a fair price for this property.
As a result, I am still recommending we settle this matter for this amount. Adoption of the enclosed
resolution will settle this matter for the recommended $280,000.00 amount. I will attend this
meeting to answer any additional questions if you feel that is appropriate. Please contact me if you
have any further questions or comments.
Very truly yours,
Steven A. Sondrall, City Attorney,
JENSEN & SONDRALL, P.A.
Enclosure(s)
cc: Valerie Leone
~Real Property Law Kirk McDonald
Specialist Certified By
The Minnesota State
Bar Association
2Admitted in Iowa P:~Attorney~AS\l CIient FilesX2 City of New Hope\99-11279 Eye Cllnic\006-1tr to D Donahue re settlement of appeal.doc
EDA RESOLUTION NO. 04-
RESOLUTION APPOVING SETTLEMENT AGREEMENT
FOR EMINENT DOMAIN PROCEEDING TO ACQUIRE
PROPERTY AT 7809 BASS LAKE ROAD
(20/20 EYE CLINIC TAKING)
WIllgREAS, the New Hope EDA initiated an eminent domain proceeding pursuant to
Minn. Stat. Chap. 117 and identified as Hennepin County District Court File No. CD 2743 for
the purpose of acquiring real property located at 7809 Bass Lake Road also known as the 20/20
Eye Clinic for housing redevelopment purposes, and
WHEREAS, on October 19, 2004 the Award of Commissioners was filed in this action
establishing the damages for the taking of this property by the New Hope EDA at $300,000.00,
and
WHEREAS, on November 24, 2004 the New Hope EDA filed its Notice of Appeal From
Award of Damages In Report of Commissioners Relating to the Property at 7809 Bass Lake
Road and served said notice on Dr. John Bockhaus and Jane Bockhaus the owners and tenant
(hereafter collectively Owners) of 7809 Bass Lake Road per Minn. Stat. §117.145, and
WHEREAS, both the EDA and Owners are desirous of settling this matter without a new
trial in Hennepin County District Court and to that end the EDA is willing to pay and the Owners
are willing to accept $280,000.00 as damages for the taking by the EDA of the property at 7809
Bass Lake Road, and
WHEREAS, the settlement of this matter is further subject to the following conditions
which are incorporated into the Settlement Agreement attached hereto as Exhibit A to be signed by
the EDA and Owners as follows:
1. In the event the property's tenant the 20/20 Eye Clinic, also owned by Dr.
Bockhaus, applies for a $20,000.00 "In Lieu" Relocation Payment instead of
reimbursement for actual relocation expenses, said application for an "In Lieu"
payment will not be contested by the EDA,
2. The parties agree the EDA has previously paid Owners $175,000.00 as a "Quick
Take" payment, therefore, the EDA will be required to pay Owners an additional
$105,000.00 to satisfy the $280,000.00 settlement amount for the taking of the
property,
3. The Owners acknowledge and agree this additional $105,000.00 payment is
inclusive of all statutory interest, costs and fees, including attorneys fees, Owners
have or claim to have a right to resulting from the EDA's taking of the property at
7809 Bass Lake Road and Owners will receive no additional payments from the
EDA in excess of the $105,000.00 payment for the taking of their property except
for relocation expenses referred to in paragraph 1. above.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in
and for the City of New Hope as follows:
1. The settlement for $280,000.00 for the taking of the property at 7809 Bass Lake
Road, known as the 20/20 Eye Clinic, is hereby approved in accordance with the terms and
conditions set forth in the Settlement Agreement attached hereto as Exhibit A.
2. The President and Executive Director are hereby authorized and directed to enter
into and sign the Settlement Agreement and to take all necessary steps to carry out the terms and
conditions of the Settlement Agreement.
3. The City Attorney is authorized and directed to dismiss the EDA's appeal from the
Award of Commissioners in the Hennepin County District Court Eminent Domain proceeding
identified as CD-2743 upon receipt of a signed Settlement Agreement from Dr. John Bockhaus,
Jane Bockhaus and the 20/20 Eye Clinic.
Adopted by the Economic Development Authority in and for the City of New Hope this 6~
day of December, 2004.
Don Collier, President
Attest:
Daniel J. Donahue, Executive Director
P:\Attorney\Cnh Resolutions\CNH99.53074-004-EDA Reso Accepting Settlement Agreement for 78099 BLR taking.doc
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STATE OF MINNESOTA DISTRICT COURT
COUNTY OF HENNEPIN FOURTH JUDICIAL DISTRICT
Case Type: Condemnation
Court File No. CD-2743
The Economic Development Authority in and for the City of
New Hope, Minnesota, a Minnesota municipal corporation,
Petitioner,
V.
SETTLEMENT AGREEMENT,
Michael Charles Tomaszewski, Francis T. Tomaszewski, RELEASE AND DICHARGE
Wells Fargo Bank, N.A., Vernon N. Arens, Martha C. RELATING TO THE
Arens, The Arens Family Trust, Clifford R. Dahlman, PROPERTY AT 7809 BASS
Angeline Dahlman, Jose A. Mendez, TCF Mortgage LAKE ROAD
Corporation, Bell America Mortgage LLC, clPo/a Bell (Parcel 9/Exhibit 9-A of Petition)
Mortgage, Bremer Bank, National Association, State Farm
Fire and Casualty Company, Richard S. Sucky, Barbara S.
Sucky, New Hope Alano Group, Inc., a Minnesota
corporation, Signal Bank National Association, Casey M.
Moo, Amy P. Moo, Marquette Capital Bank, NA, Mortgage
Electronic Registration Systems, Inc., as nominee for
Regents Mortgage, LLC, U.S. Bank National Association,
N.D., Beatrice Dolan, TCF National Bank, John Bockhaus,
Jane Bockhaus, 20/20 Eye Care & Optics, Alphonse J.
Dejno, Betty Lorraine Dejno, Marqueritte C. Hanle, World
Savings Bank, FSB, Qwest Communications Corporation, a
Delaware corporation, Qwest Corporation, a Colorado
corporation, Xcel Energy Inc., a Minnesota corporation,
Centerpoint Energy Minnegasco, a division of Centerpoint
Energy Resources Corp., a Delaware corporation, City of
New Hope, a Minnesota municipal corporation, and County
ofHennepin, a Minnesota municipal corporation, John Doe,
an unknown person and Mary Roe, an unknown person,
Respondents.
EXHIBIT
AGREEMENT, RELEASE AND DISCHARGE
1. Parties. This Settlement Agreement, Release and Discharge is entered into and is
effective this __ day of December 2004 by the Economic Development Authority in and for
the City of New Hope (hereinafter referred to as Petitioner), and Dr. John Bockhaus, Jane
Bockhaus and the 20/20 Eye Care & Optics by and through its owner Dr. John Bockhaus
(hereinafter collectively referred to as Respondents).
2. Purpose. The purpose of this Settlement Agreement is to determine the award of
damages for thc Petitioner's taking of the Respondents' real property located at 7809 Bass Lake
Road, New Hope, Minnesota. Respondents' acknowledge and agree Petitioner has paid Respondents
a "Quick Take" payment orS 175,000.00 the receipt of which was acknowledged on July 1,2004 and
from said payment Respondents' authorized Petitioner to withhold $2,699.11 for Respondents'
required payment of the 2nd half of real estate taxes payable in 2004. The parties further acknowledge
and agree the $300,000.00 award of damages ~iled by the Commissioners in this action shall be
reduced to $280,000.00 and shall be paid by Petitioner in accordance with the terms set out in
paragraph 3.
3. Payment. Petitioner shall pay Respondents an additional $105,000.00 to satisfy the
herein stipulated $280,000.00 award of damages. Said payment shall be delivered to Respondents'
attorney no later than December 15, 2004. The payment shall be made payable to Respondents and
their attorney. The parties hereto also agree to the following terms and conditions:
a) In the event the property's tenant the 20/20 Eye Clinic, also owned by Dr. Bockhaus,
applies for a $20,000.00 "In Lieu" Relocation Payment instead of reimbursement for
actual relocation expenses, said application for an "In Lieu" payment will not be
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contested by the Petitioner.
b) The Respondents acknowledge and agree this additional $105,000.00 payment is
inclusive of all statutory interest, costs and fees, including attorneys fees and
appraisal fees, Respondents have or claim to have a right to resulting from the
Petitioner's taking of the property at 7809 Bass Lake Road and Respondents will
receive no additional payments from the Petitioner in excess of the $105,000.00
payment for the taking of their property except for relocation expenses referred to in
section 3(a) above.
c) In consideration of the payment by Petitioner to Respondents of the sum of
$280,000.00 in the above described manner, the parties hereby respectively release
and forever discharge the other from any and all past or present claims and demands,
which each party has or claims to have against the other, or in any manner growing
out of Petitioner's taking by eminent domain of real property owned and or leased by
Respondents commonly known as 7809 Bass Lake Road in the City of New Hope,
County of Hennepin, Minnesota. This Release and Discharge shall be a fully-binding
and complete settlement among the undersigned parties hereto. This Release is
intended to and does hereby extinguish any and all claims Respondents' may have
against Petitioner and any of Petitioner's officials, employees, agents or
representatives.
DISMISSAL WITH PREJUDICE
This Settlement Agreement, Release and Discharge is in response to the claims and
demands of the parties as presented to the District Court for the State of Minnesota, County of
Hennepin, under Court File No. CD-2743 and the parties' attorneys are authorized and shall
execute an appropriate Stipulation of Dismissal with Prejudice as to all said claims.
ADEQUATE CONSIDERATION/DENIAL OF LIABILITY
Respondents agree and acknowledge they accept the herein payment pursuant to the terms
of this Settlement Agreement, Release and Discharge as a full, complete, final, and binding
compromise of all matters involving the disputed issues relating to the award of damages for the
taking of their property at 7809 Bass Lake Road, regardless of whether too much or too little may
have been paid;
EXECUTED BY THE PARTIES HERETO:
PETITIONER: RESPONDENTS:
Economic Development Authority in
and for the City of New Hope
by: Dr. John Bockhaus
by: Don Collier,
its: President by: Jane Bockhaus
20/20 Eye Care & Optics
by: Daniel J. Donahue
its: Executive Director
by: Dr. John Bockhaus
its: Owner
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