EDA 24-3 Declaring Release of Interest in the East Side Fire FacilitiesSHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION 24-3
A RESOLUTION DECLARING RELEASE OF INTEREST IN THE EAST SIDE FIRE FACILITIES
WHEREAS, in 2002 the Shorewood Economic Development Authority facilitated the
construction financing of the East Side Fire Facilities, located at 20227 Cottagewood Road in
Deephaven, Minnesota, through lease revenue bonds; and
WHEREAS, the Shorewood EDA entered into various agreements which are detailed in the
attached Declaration of Release of Property Interest (East Side Fire Facilities); and
WHEREAS, the bonds have been retired and all costs associated with the acquisition and
construction of the site and facilities have been paid.
NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Shorewood Economic
Development Authority that the Economic Development Authority hereby:
1. Approves the attached Declaration of Release of Property Interest hereby forever
releasing all rights, title and interest in the East Side Fire Facilities in the favor of the City
of Deephaven; and
2. Authorizes the Executive Director to take all actions necessary, including the execution
of documents on behalf of the Authority, to vest in the City of Deephaven all of the
Authority's right, title, and interest in and to the East Side Fire Site and Facilities.
Adopted by the Board of the Economic Development Authority in and for the City of
Shorewood, Minnesota this 28t" day of October 2024.
JepKfer Lab die, President
Attest:
P
Marc 14evinski, Executive Director
(reserved for recording information)
DECLARATION OF RELEASE OF PROPERTY INTEREST
TO CITY OF DEEPHAVEN
(East Side Fire Facilities)
This DECLARATION OF RELEASE OF PROPERTY INTEREST (East Side Fire
Facilities) is granted this Eday of 1 1 , 2024, by the ECONOMIC
DEVELOPMENT AUTHORITY OF THE CITY OF SHOREWOOD, a public body corporate
and politic and political subdivision of the State of Minnesota ("Authority").
RECITALS
A. The City of Deephaven, a Minnesota municipal corporation ("City"), is the fee owner
of certain real property located in the City of Deephaven, County of Hennepin, State of Minnesota,
which is located at 20225 Cottagewood Road, and is legally described as is set forth in the Ground
Lease defined in Recital B below (PID; 2411723340004) (the "Property_").
B. On September 1, 2002, the City, as Lessor of the Property, entered into that certain
Ground Lease (East Side) Agreement with the Excelsior Fire District ("EFD"), a Minnesota joint
powers entity pursuant to Minnesota Statutes § 471.59, as Lessee of the Property, which Ground
Lease (East Side) was filed of record in the Office of the Hennepin County Recorder on November
8, 2002, as Document No. 7857045, and in the Office of the Hennepin County Registrar of Titles as
Document No. 3628652 (the "Ground Lease").
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C. On September 1, 2002, the EFD, as Lessor, entered into that certain Subground Lease
(East Side) with the Authority, as Lessee of the Property, which Subground Lease (East Side) was
filed of record in the Office of the Hennepin County Recorder on November 8, 2002, as Document
No. 7857046, and in the Office of the Hennepin County Registrar of Titles as Document No. 3628653
(the "Subground Lease").
D. On September 1, 2002, the Authority, as Lessor of the Property, entered into that
certain Lease Purchase Agreement (East Side) with the City, as Lessee of the Property, which Lease
Purchase Agreement (East Side) was filed of record in the Office of the Hennepin County Recorder
on November 8, 2002, as Document No. 7857047, and in the Office of the Hennepin County Registrar
of Titles as Document No. 3628654 (the "Lease Purchase Agreement").
E. Pursuant to Section 4.1 of the Lease Purchase Agreement, the City leased and
purchased the Authority's interest in the Site and the Facilities, as each is defined in the Ground Lease
and the Lease Purchase Agreement.
F. On September 1, 2001, the City, as Lessor of the Site and Facilities, entered into that
certain Sublease Purchase Agreement (East Side) with the EFD, as Lessee, which Sublease Purchase
Agreement (East Side) was filed of record in the Office of the Hennepin County Recorder on
November 8, 2002, as Document No. 7857048, and in the Office of the Hennepin County Registrar
of Titles as Document No. 3628655 (the "Sublease Purchase Agreement").
G. Pursuant to the Sublease Purchase Agreement, the EFD assumed all of the City's
obligations under the Lease Purchase Agreement, and acquired an option to purchase from the City
all of the City's interests in the Site and the Facilities on the same terms as set forth in the Lease
Purchase Agreement.
H. Pursuant to the Lease Purchase _ Agreement, the Authority issued certain Lease
Revenue Bonds for the purpose of providing funds necessary for the acquisition and construction of
the Site and the Facilities.
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L Pursuant to Section 5.3 of the Lease Purchase Agreement, upon (i) payment of all
required Lease Payments and Additional Lease Payments, and (ii) defeasance of the Lease Revenue
Bonds, "the Authority's interest, right, and title to the Site and the Facilities shall pass to the City, and
the Authority shall have no further interest therein."
J. Pursuant to Section 5.5 of the Lease Purchase Agreement, upon satisfaction of (i) and
(ii) above, "the purchase of the Authority's interest in the Site and the Facilities by the City shall be
deemed to have been completed. The Authority shall thereupon deliver to the City such instruments
of conveyance or release as, in the opinion of the City, may be necessary to release the interests of the
Authority ... in the Site and Facilities."
K. As of February 1, 2022, the payment of all Lease Payments and Additional Lease
Payments was completed, as required by the Lease Purchase Agreement.
L. As of February 1, 2022, all Lease Revenue Bonds issued in relation to the acquisition
and construction of the Site and the Facilities have been retired, and all costs associated with the
acquisition and construction of the Site and the Facilities have been paid.
M. Accordingly, the City's acquisition of the Authority's interest in the Site and Facilities
is complete, but for the delivery of the necessary instruments of conveyance from the Authority to the
City.
N. This DECLARATION OF RELEASE OF PROPERTY INTEREST (East Side
Fire Facilities) is made by the Authority for the purpose completing the conveyance of the
Authority's interests in the East Side Fire Site and Facilities to the City of Deephaven.
O. On October 28, 2024, the Board of Commissioners for the Authority adopted
Resolution EDA 24-3 approving the Conveyance and authorizing its Executive Director to take
all actions necessary, including the execution of documents on behalf of the Authority, to vest in
the City all of the Authority's right, title, and interest in and to the Site and the Facilities.
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NOW, THEREFORE, based on the terms and conditions of the Ground Lease, the Lease
Purchase Agreement, the Sublease Purchase Agreement other agreements related to the Site and
Facilities, and Resolution EDA 24-3, the Authority declares the following:
l . Recitals A — O are true and correct, and are incorporated into and made part of this
DECLARATION OF RELEASE OF PROPERTY INTEREST (East Side Fire Facilities).
2. The Authority hereby forever releases all right, title, and interest in the Site and the
Facilities in the favor of the City of Deephaven.
3. This document shall run with the land and shall be filed of record in the Office of the
Hennepin County Registrar of Titles and in the Office of the Hennepin County Recorder upon
execution.
[signature page follows]
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DATED this 4710day of i , 2024.
(SEAL)
STATE OF MINNESOTA )
) SS.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
2024, by Marc Nevinski, the Executive Director of Economic Development
Authority of the City of Shorewood, a public body corporate and politic and political subdivision of
the State of Minnesota, on behalf of the Authority, and pursuant to the authority granted by its Board
of Commissioners.
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Notary Pu lc
/
;..;•.,• %
BRENDA K PRICCQ
Notary Public
Minnesota
My Commission Expires
Jan 31, 2025
THIS INSTRUMENT WAS DRAFTED BY:
CANI[PBELL KNUTSON
Professional Association
Grand Oak Office Center 1
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
651-452-5000
JDS/AKLS
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