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9.c Report on resolution terminating a restrictive covenantSC DILA Staff Report Date of Meeting: August 21, 2018 To: City Council From: Neil Soltis, Administrator Re: Termination of Restrictive Covenant Background: Carol Bofenkamp, the owner, proposes sell the lot and house located at 18135 Margo Ave and two adjoining lots on Margo to Washington County for inclusion into the Big Marine Park Reserve. A quit claim deed from Carol Bofenkamp to Carol Bofenkamp (Document 827587 dated 12/20/94) on two other parcels that Bofenkamp is not selling to the County has a restrictive covenant that these parcels cannot be sold, transferred or otherwise conveyed separately from the parcel that contains the house and a parcel located in May Township without the consent of the Town Board. Approval for terminating this restriction is necessary for the County to acquire the parcel that contain the house. If approved Carol Bofenkamp would still retain an outlot which provides access to two additional parcel which total roughly 8.7 acres with suitable area outside of the shoreland setback for a house, septic system, and backup septic system. City Attorney Andy Pratt has worked with the Bofenkamp attorney on the termination document and has prepared the resolution. Issue: Should the Council approve the resolution authorizing execution of the termination agreement Proposal Details: A parcel map is provided on the following page Fiscal Impact: The property taxes paid to the City on all 3 parcels for 2018 total $1,495. Options: 1. Approve the resolution 2. Defer action for additional information 3. Take no action on the resolution Recommendation: Option 1 Reserved for Recordina Data AGREEMENT TERMINATING RESTRICTIVE COVENANT This Agreement Terminating Restrictive Covenant (the "Agreement") is made this day of , 2018, by and between the City of Scandia, Minnesota, a municipal corporation and political subdivision under the laws of the State of Minnesota (the "City") and Carol A. Bofenkamp and Thomas M. Bofenkamp, married to each other (the "Bofenkamps"). RECITALS A. Carol A. Bofenkamp was both the Grantor and the Grantee on that certain Quit Claim Deed dated December 20, 1994 and recorded December 30, 1994 in the office of the County Recorder for Washington County, Minnesota as Document Number 827587 (the "Quit Claim Deed"). B. The Quit Claim Deed established a restrictive covenant as to the real property described in the Quit Claim Deed, which restriction reads as follows: The property herein described may not be sold, transferred or otherwise conveyed separately from Lot 1, Block 3 of Big Lake Estates and Government Lot 1, Section 4, Township 31 North, Range 20 West without the consent of the Town Board of New Scandia Township. C. As of January 1, 2007, the City is the successor of the Town of New Scandia and has the authority to release the said restrictive covenant. NOW, THEREFORE, in consideration of the Recitals, which are hereby adopted, and the covenants and agreements hereinafter contained, it is hereby agreed by and between the parties as follows: 1. Bofenkamps warrant that no part of the real property described in the Quit Claim Deed has been sold, transferred or otherwise conveyed by them. 2. The restrictive covenant contained in the Quit Claim Deed is hereby terminated and shall be of no further force or effect. The City Council of the City has adopted a resolution approving this Agreement, which memorializes the City's intent to terminate the aforementioned restrictive covenant. 3. The terms and conditions of this Agreement shall run with the land and shall be binding upon the successors and assigns of the parties hereto. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed with an effective date as first stated above. CITY OF SCANDIA, MINNESOTA 0 Christine Maefsky Its: Mayor By: Neil Soltis Its: City Administrator 2 Thomas M. Bofenkamp Carol A. Bofenkamp STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON) The foregoing instrument was acknowledged before me this day of 2018 by Christine Maefsky and Neil Soltis, the Mayor and City Administrator, respectively, of the City of Scandia, a municipal corporation and political subdivision under the laws of the State of Minnesota, on behalf of said municipal corporation and political subdivision. STATE OF ) ss. COUNTY OF Notary The foregoing instrument was acknowledged before me this day of _ by Thomas M. Bofenkamp and Carol A. Bofenkamp, married to each other. Notary Public Drafted by: Greig R. Tennis (#15619X) Tennis Law Office, P.A. 20 Lake Street N, Suite 202 Forest Lake, MN 55025 651/464-7400 2018