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Aberdeen City Council

Regular Meeting

Aberdeen, SD · January 13, 2020

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Agenda

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City Manager’s Proposed Action: Motion by ___________, second by __________ to accept, pursuant to SDCL 6-13-5, the high bid of C&J Holdings, LLC, in the amount of $7,500.00 to purchase the real property declared surplus by Resolution No. 19-12-02R, and to authorize the City Manager to execute all documents necessary to conclude a sale of the real property upon the terms and conditions set forth in the Invitation To Bid – Notice of Sale. Overview: The Council previously declared Lot 1 in M & M Second Subdivision to the City of Aberdeen as surplus property. A notice of sale upon sealed bids was published in compliance with SDCL 6- 13-4. The bid opening occurred on January 7, 2020, with the highest bid submitted by C&J Holdings. The Council is required to accept the bid of the highest bidder or reject all bids. The City Manager recommends acceptance of the high bid and that he be granted authority to execute the necessary documents to conclude the sale of the real property to C&J Holdings. Budgetary/Fiscal Issues: The lot was appraised by three property owners as required by SDCL 6-13-2. The appraisal reports will be filed with the Finance Office after execution of a purchase agreement for the real property. The Administration will incur certain expenses in closing the sale. Such expenses will be included in the costs at closing so no additional budget appropriation is requested. Attachments: 1. Bid Packet (with Invitation To Bid – Notice Of Sale) 2. Affidavit of Publication 01/10/2020 Page 23 of 68 BID TABULAT¡ON FOR SURPLUS REAL PROPERTY Bids Received: January 7 ,2020 at 2:00 PM 123 South Lincoln Street Aberdeen, SD 57401 Name of Bidder: Depot Apartments, LLC C&J Holdings Address of Bidder: 501 2nd Avenue 1111 S. 2nd Street Frederick, SD 57441 Aberdeen, SD 57401 Description of Bid: Surplus Real Property $6,750.00 $7,500.00 Described as: LOT 1 in M&M Second Subdivision to the City of Aberdeen, according to the plat thereof of record, Brown County, South Dakota. Bid Suretv Cashier's Check for $675.00 Cashier's Check for $750.00 Certified By: l-1-LoLo 01/10/2020 Page 24 of 68 SURPLUS REAL PROPERTY INVITATION TO BID – NOTICE OF SALE, CONDITIONS OF SALE, AND INSTRUCTIONS TO BIDDERS INVITATION TO BID – NOTICE OF SALE Notice is hereby given that sealed bids will be received by the City Council of Aberdeen, South Dakota, at the office of the Finance Officer, Auditor Division, 123 S. Lincoln Street, Aberdeen, SD 57401-4215 until 2:00 o’clock p.m. local time on Tuesday, January 7, 2020, at which time bids will be publicly opened, read, and referred to the City Council for sale of the following surplus real estate: LOT 1 in M & M SECOND SUBDIVISION TO THE CITY OF ABERDEEN, according to the plat thereof of record, BROWN COUNTY, SOUTH DAKOTA. The sale shall be conducted in accordance with SDCL Ch. 6-13. The City reserves the right to reject any and all bids. If not rejected, the City Council is required to accept the high bid for the surplus real property before the City Manager may be authorized to execute a purchase agreement on behalf of the City. No bid may be withdrawn within a period of thirty (30) days after the date fixed for opening bids. The successful bidder(s) shall execute within five (5) business days of notice of award a “Surplus Real Property Purchase Agreement” in the form approved by the City Attorney. CONDITIONS OF SALE The following terms and conditions shall apply to the sale of the surplus property: 1. The surplus property will be sold as-is in the condition existing at the time of the sale, subject to all easements and encumbrances of record. 2. The surplus property is currently exempt from real property taxation but may not retain its tax-exempt status as of the date of closing. 3. The surplus property is zoned in the I-2 highway commercial district. 4. Closing shall take place as soon as practicable but in no case later than 30 days after acceptance of the bid by the City Council. 5. Title shall transfer by quit claim deed from the City of Aberdeen to the successful bidder. 01/10/2020 Page 25 of 68 6. If the successful bidder owns real property adjacent to the surplus property, the successful bidder within 90 days of the closing shall submit to the Planning & Zoning Department the forms necessary to combine the surplus property with the adjacent property and shall incur all costs associated with the re-plat. INSTRUCTIONS TO BIDDERS Each bid shall be legibly written or printed in ink and clearly identify the bid amount. Each bidder shall sign the bid using the bidder’s usual signature and the bidder’s full business address. When requested by the City, evidence of the authority of the person signing shall be furnished. Each bid shall be enclosed in a sealed envelope, addressed to the Finance Officer of the City of Aberdeen, South Dakota, identified on the outside with the words “Bid for Surplus Real Property”, and filed with the office of the Deputy Finance Officer, Auditor Division, not later than 2:00 o'clock p.m. local time on January 7, 2020. Each bid shall be accompanied by a certified check, cashier's check, or draft certified or issued by a state or national bank payable to the City of Aberdeen equal to ten percent (10%) of the bid offer. Copies of this Notice, bid details, and proposed contract document are available upon request from City Attorney, Ron Wager, at the Municipal Building, 123 S. Lincoln St., Aberdeen, SD 57401 ((605) 626-7025) (ron.wager@aberdeen.sd.us). By Order of the Aberdeen City Council. Dated this 3rd day of December, 2019. /s/ Karl Alberts By:__________________________ Karl Alberts, Finance Officer 01/10/2020 Page 26 of 68 PLAT OF ^,7.172 M & M SËCOND SUBD¡VISION TO THE CITY OF ABERDEEN, ¡N THE NW 1 14 OF SECTION 24-'1123N-R64W OF THE sth P.M., BROWN COUNTY, SOUTH DAKOÏA 11TH AVÊNUË SW PIPI LS 8295 i\ ----*l ?" L q^ro EAST 50' OF s-¡ËËL Sl.lrLDrNG F ourLoÌ t) ul (,t (ñoÌ PARI OF lrJ 921 TH|S FLAr) É. LJ t. :.. RÒËTRT K. : t- KIESO U) t"- U) i'&.çr,mq"$"* ñ É 'Ð tttt Cì IL T di f* f 31 ì.4? o Ø , N9o'00'û0"w N594.111.6? E2 356r C2.85 j" I o SIEEL z ^8ÉRDEåNOU'ILOT A di BUILOÍNGS (vAcAÌÊD BY rHrS ÞLÀT) PIPE L I ^så*ffi';- ,.ñ,-fËï"'X¿'*^'l r) q o o N z LOT 1 0.r1 AcRls t.s 1â41 PREVIOUSLY VACÂfEO SOUIH ljrRsr srRtt T ì -, *,,-,'r;tS,:Ì:^"ì LOr :. Þ\Rì "' € èp I Gl(J' @ o z ABíRDEEN SIEEI BUILDING5 OUftoT 8 (VACAIED BY TT]IS PLÂI) r0 (NFrrT) LS 1641 '- *'- -' -' -(:) N5941 72.4.9 3J.00' LS 82S5 12356072.70 -- t1 N5941 72.60 LEGEND I F?356 r 05.1'-o v c FOUND PROPERïY CORNÉR AS NO1ED I o sEr 5/8" X 16' RÉB^R wllH SURVEY l ' "ttBD\s9\d CAP SIAMPED KIESO RLS 9214 t-- T !!rt) UTILITY EASEMENTS "-E' vlu ""r**113,":Ìåì*B:tto} 5' S|oES lO,BACK fni'¡ äfp BASIS OF BEAR]NGS H=" Helms ASSOCIATËS atG: ú!.¡¡5.t¡¡¡ SD SIÂTE PLANE NORTH ZONE DISÏANCES ARE GROUND r lvll ftt¡l*l:rìF-(A l,\\DSl ¡\'nlllRS COORDINÀ1E5 ARE GRIO owc 7,172-LS BY: KMW S¡IEET 1 OF 3 01/10/2020 Page 27 of 68 Brown County, SD Overview Legend Railroad Highways Roads City Street County System Road No Local Administration Township System Road Legal Townships Parcels Cities and Towns 230 ft Parcel ID 28404 Class n/a Owner Address ABERDEEN CITY Sec/Twp/Rng 0-0-0 Acreage n/a ATT: ROBIN BOBZIEN Property Address 123 S LINCOLN ST Aberdeen City ABERDEEN SD 57401 District 326100 01/10/2020 PART V/S BETWEEN BK 43 & 46 THOMAS ADD (33 X 137.5) Page 28 of 68 Brief Tax Description (Note: Not to be used on legal documents) Date created: 11/25/2019 Last Data Uploaded: 11/25/2019 7:44:29 AM Developed by SURPLUS REAL PROPERTY PURCHASE AGREEMENT THIS SURPLUS REAL PROPERTY PURCHASE AGREEMENT is made and executed between , of , Aberdeen, South Dakota 57401 (hereafter "Buyer"), and CITY OF ABERDEEN, a South Dakota municipal corporation, of 123 South Lincoln Street, Aberdeen, South Dakota 57401(hereafter "City"). WITNESSETH: WHEREAS, City is the owner of certain surplus real property located in Brown County, South Dakota, as more specifically defined herein below; and SA WHEREAS, City desires to sell the property and Buyer desires to purchase the property upon certain terms and conditions; NOW, THEREFORE, in consideration of the premises and respective mutual agreements, covenants, representations, and warranties herein contained, the parties hereby mutually agree as follows: 1. M SALE OF PROPERTY: City agrees to sell, and Buyer agrees to purchase on the terms hereafter stated, the surplus real property located in Brown County, South PL Dakota (hereinafter called the "Property") legally described as: LOT 1 in M & M SECOND SUBDIVISION TO THE CITY OF ABERDEEN, according to the plat thereof of record; upon the following terms and conditions: 2. E PURCHASE PRICE: Buyer shall pay to City the sum of Dollars ($ ), to be due at closing, subject to the adjustments and pro- rations set forth in paragraph 4 hereof. 3. CLOSING: Buyer and City agree the purchase shall be consummated as follows: a. Title Transfer: City agrees to convey title to the Property to Buyer by Quit Claim Deed on the Closing Date and, effective on the delivery of such deed by City to Buyer, beneficial ownership and the risk of loss of the Property will pass from City to Buyer; b. Closing Date: The closing will take place at Titles Of Dakota, Aberdeen, South Dakota, on or about January 31, 2020, with the exact time for 01/10/2020 Page 29 of 68 closing to be designated by City and approved by Buyer. c. City's Instruments: At closing, City will deliver or cause to be delivered to Buyer the following items (all documents to be duly executed and acknowledged where required): (1) Quit Claim Deed: A Quit Claim Deed on the Property conveying to Buyer all of City’s right, title, and interest in the Property; (2) Additional Documents: Such additional documents as might be reasonably required by Buyer to consummate the sale of the Property to Buyer; and, d. Buyer's Instruments: At closing, Buyer will deliver to City the payment required by paragraph 2 and such additional documents as might be reasonably required by City to consummate the sale of the Property to SA Buyer. 4. ADJUSTMENTS AND PRORATIONS: The purchase price will be adjusted on the following basis: a. Property Taxes: City shall pay all real estate taxes due and owing b. M through Closing Date. Taxes due shall be based off previous years' taxes; Closing Costs: Closing costs shall be shared equally by Buyer and City; c. d. PL Transfer Fee: The transfer fee shall be paid by City; Recording of Deed: The recording of the Quit Claim Deed shall be paid by Buyer; and e. 5. E Attorney's fees. Each party shall be responsible for their own attorney's fees. POSSESSION: Possession of the Property will be delivered to Buyer at closing. 6. DEFAULT REMEDY: In the event that either party fails to perform such party's obligations hereunder, the party claiming default will make written demand for performance. If either fails to comply with such written demand within ten (10) days after receipt thereof, each will have any and all remedies provided by law. If there is litigation arising out of this purchase agreement, the non-prevailing party shall pay the attorney's fees, costs, and sales tax on fees of the prevailing party. 7. SIGNING OF DOCUMENTS: This agreement may be signed in counterpart and may be transmitted by facsimile or electronic mail with full force of 01/10/2020 Page 30 of 68 regular mail. [8. RE-PLAT. Buyer owns real property adjacent to the Property. Buyer agrees within 90 days of the closing to submit to the City of Aberdeen Planning & Zoning Department the forms necessary to combine in a single plat the Property with the adjacent property owned by Buyer and to incur all costs and expenses associated with the re-plat. If Buyer fails to re-plat the Property, Buyer hereby irrevocably appoints City as its agent to take all actions and to sign all documents necessary to combine by re-plat the Property with the adjacent property. Buyer additionally agrees and consents to special assessment by levy and collection against the re-platted property of all costs and expenses, including engineering and survey fees, associated with the re-plat if not paid by Buyer within 30 days from the date of invoice by City.] 9. MISCELLANEOUS: It is further agreed as follows: a. Time: Time is the essence of this Agreement; b. c. SA Notice: All notices required hereunder will be in writing and served by certified mail, return receipt requested, postage prepaid, at the addresses shown above, until notification of a change of such address; Survival: All representations and warranties of City and Buyer contained d. M in this agreement will survive the closing of this transaction; Entire Agreement: This instrument constitutes the entire agreement PL between Buyer and City and there are no agreements, understandings, warranties, or representations between Buyer and City except as set forth herein. This Agreement cannot be amended except in writing executed by Buyer and City; e. Binding Effect: This Agreement will inure to the benefit of and bind the f. E respective successors and permitted assigns of the parties hereto; and Counterparts. This Agreement may be signed in counterparts, with full effect as a valid contract. [SIGNATURE PAGE TO FOLLOW] 01/10/2020 Page 31 of 68 IN WITNESS WHEREOF, this instrument has been executed in duplicate by the parties on the date heretofore written. SELLER: Date: BUYER: CITY OF ABERDEEN Date: SA Lynn Lander, Buyer Manager ATTEST: Karl Alberts, Finance Officer M PL E 01/10/2020 Page 32 of 68 AFFIDAVIT OF PUBLICATION STATE OF SOUTH DAKOTA) s UNTY OF BROWN) \rx, duly sworn, on his/her oath says: That the NEIVS is a daily newspaper of general circulation, printed and published in Aberdeen, Brown County, South Dakota by the Aberdeen News Company, a corporation, and has been such a newspaper during the times hereinafter mentioned; That affiant is an employee and principal clerk ofsaid publisher and has personal knowledge of all facts stated in this afädavil That the advertisement headed: ù\ ù¡¡--''T..>) (-: .)lç Ruù a printed copy of which is hereunto attached, was printed and published in the regular and entire issue of said newspaper, and not in a thereof, once each \^q\ ror > The first publication being made on the day of' 2019. The second publication being made on the day of ç5lL, .2019 Thethirdpublicationbeingmadeonthedayof-,20l9' The fourth publication being made on the day of The fifth publication being made on the day of The sixth publication being made on the day of _ That said newspaper is a legal newspaper published five days or more with a bona fide circulation of more than two hundred copies daily; English language within the said county of Brown for more than one year first publication of said notice; and printed in whole in an office place of publication of said newspaper; That the whole amount of the fee publication of the annexed notice is S \-r+11 o which to the benefit of said publisher; That no agreement or understanding for thereof had been made with any other person; and That no part thereof to be to any person whomsoever t* Subscribed and sworn to before me this )vu day of Daily Circulation (}'rt Notary Public, Brown County, SD. 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