24-088 Declaring Release of Interest in the West Side Fire Facility and Approving the Certificate of CompletionCITY OF SHOREWOOD
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION 24-088
A RESOLUTION DECLARING RELEASE OF INTEREST IN THE WEST SIDE FIRE FACILITY AND
APPROVING THE CERTIFICATE OF COMPLETION
WHEREAS, in 2002 the Shorewood Economic Development Authority facilitated the construction
financing of the West Side Fire Facilities, located at 24100 Smithtown Road in Shorewood,
Minnesota, through lease revenue bonds; and
WHEREAS, the Shorewood Economic Development Authority entered into various agreements
which are detailed in the attached Declaration of Release of Property Interest (West 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; and
WHEREAS, the Shorewood Economic Development Authority has adopted Resolution EDA 24-1 on
October 28, 2024 releasing any and all interest in the West Side Fire Facility to the City of
Shorewood.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood that the Council
hereby:
1. Approves the attached Declaration of Release of Property Interest hereby forever releasing
all rights, title and interest in the West Side Fire Facilities in the favor of the Excelsior Fire
District; and
2. Approves the attached Certificate of Completion; and
3. Authorizes the City Administrator to take all actions necessary, including the execution of
documents on behalf of the City, to vest in the Excelsior Fire District all of the City's right,
title, and interest in and to the Site and Facilities.
Adopted by the City Council of the City of Shorewood, Minnesota this 28th day of October 2024.
1 nifer badie, Mayor
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Wst:
Sandra Thone, Ci y erk
(reserved for recording information)
DECLARATION OF RELEASE OF PROPERTY INTEREST
TO EXCELSIOR FIRE DISTRICT
(West Side Fire Facilities)
This DECLARATION OF RELEASE OF PROPERTY INTEREST (West Side Fire
Facilities) is granted this 28th day of October, 2024, by the CITY OF SHOREWOOD, a Minnesota
municipal corporation ("City")
RECITALS
A. The Excelsior Fire District ("EFD"), and the South Lake Minnetonka Police
Department ("SLMPD"), each one a Minnesota joint powers entity pursuant to Minnesota Statutes §
471.59, are the fee owners of certain real property located in the City of Shorewood, County of
Hennepin, State of Minnesota, which is located at 24150 Smithtown Road. and is legally described
as Lot 2, Auditor's Subdivision 133, Hennepin County, State of Minnesota (PID: 3311723110003)
(the "Property").
B. On September 1, 2002, the Economic Development Authority of the City of
Shorewood, a public body corporate and politic and political subdivision of the State of Minnesota
("Authority"), as Lessee of the Property, entered into that certain Ground Lease (West Side)
Agreement with the EFD and the SLMPD, collectively as Lessor of the Property, which Ground Lease
(West Side) was filed of record in the Office of the Hennepin County Recorder on November 8, 2002,
as Document No. 7857053 (the "Ground Lease")
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C. The Ground Lease has been amended, as reflected in the documents filed of record in
the Office of the Hennepin County Recorder as Document Nos. 8128546, 8975090, and Al 0293265.
D. On September 1, 2002, the Authority, as Lessor of the Property, entered into that
certain Lease Purchase Agreement (West Side Fire Facilities) with the City of Shorewood, a
Minnesota municipal corporation ("City"), as Lessee of the Property, which Lease Purchase
Agreement (West Side Fire Facilities) was filed of record in the Office of the Hennepin County
Recorder on November 8, 2002, as Document No. 7857054 (the "Lease Purchase Agreement")
E. The Lease Purchase Agreement has been amended, as reflected in the documents filed
of record in the Office of the Hennepin County Recorder as Document Nos. 8125548, 8975091, and
A 10293266.
F. Pursuant to Section 4.1 of the Lease Purchase Agreement, as amended, 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.
G. On September 1, 2002, the City, as Lessor of the Site and Facilities, entered into that
certain Sublease Purchase Agreement (West Side Fire Facilities) with the EFD, as Lessee of the Site
and Facilities, which Sublease Purchase Agreement (West Side Fire Facilities) was filed of record in
the Office of the Hennepin County Recorder on November 8, 2002, as Document No. 7857055 (the
"Sublease Purchase Agreement").
H. Pursuant to the Sublease Purchase Agreement, the EFD assumed all of the City's
duties and responsibilities under the Lease Purchase Agreement, and acquired an option to purchase
from the City all of the City's interests in the Facilities on the same terms as set forth in the Lease
Purchase Agreement.
1. Pursuant to the Lease Purchase Agreement, as amended, 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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J. Pursuant to Section 5.3 of the Lease Purchase Agreement, as amended, 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."
K. Pursuant to Section 5.5 of the Lease Purchase Agreement, as amended, 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."
L. As of February 1, 2023, the payment of all Lease Payments and Additional Lease
Payments was completed, as required by the Lease Purchase Agreement.
M. As of February 1, 2023, 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.
N. On October 28, 2024, the Board of Commissioners for the Authority adopted
Resolution EDA 24-1, approving a Declaration of Release of Property Interest (West Side Fire
Facilities) in favor of the City, which vested in the City alt of the Authority's right, title, and interest
in and to the Site and Facilities.
O. Accordingly, the City's acquisition of the Authority's interest in the Site and Facilities
is complete, and pursuant to the terms of the Sublease Purchase Agreement between the City and the
EFD, the City must convey the City's interest in the Site and Facilities to the EFD.
P. This DECLARATION OF RELEASE OF PROPERTY INTEREST (West Side
Fire Facilities) is made by the City for the purpose completing the conveyance of the City's
interests in the Site and the Facilities to the EFD.
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Q. On October 28, 2024, the City Council of the City of Shorewood adopted Resolution
No. 24-88 approving the conveyance and authorizing the City Administrator to take all actions
necessary, including the execution of documents on behalf of the City, to vest in the EFD all of
the City's right, title, and interest in and to the Site and Facilities.
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 No. 24-88, the City declares the following:
1. Recitals A — Q are true and correct, and are incorporated into and made part of this
DECLARATION OF RELEASE OF PROPERTY INTEREST (West Side Fire Facilities).
2. The City hereby forever releases all right, title, and interest in the West Side Fire Site
and Facilities in the favor of the EFD.
3. This document shall run with the land and shall be filed of record in the Office of the
Hennepin County Recorder upon execution.
[signature page follows]
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DATED this day of OCTVOW72024.
lei 0 Mall W w_1A D&W11011
By:
Marc Nevinski, City Administrator
(SEAL)
STATE OF MINNESOTA )
ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this 1 day of
, 2024, by Marc Nevinski, the City Administrator of the City of Shorewood, a
Minnesota municipal corporation, on behalf of the City, and pursuant to the authority granted by its
City Council.
ublic
BRENDA K PRICCO
,�"`;..�•-.;��� Notary Public
Minnesota
My Commission Expires
Jan 31, z025
Y Ill [.YL`G' II.Z11►y 1 o1U11\`7 77\ �1111 �117��i
CAMPBELL 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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CERTIFICATE OF COMPLETION
West Side Fire Facilities
I, the undersigned, hereby certify that am the duly qualified and acting Representative of
the City of Shorewood, Minnesota ("Lessee" or "City"); and with respect to the Lease Purchase
Agreement dated as of September 1, 2002 (the "Lease"), by and between Lessee and the
Shorewood Economic Development Authority ("Lessor"), that:
1. As of this date, the construction and acquisition of the Facilities has been completed
and the Project Costs (West Side Fire Facilities) have been paid, except for any portion thereof
which has been incurred but is not yet due and payable, or the liability for the payment of which
is being contested or disputed by the City.
2. This Certificate is given without prejudice to any rights the City has or may have
against third parties which exist as of the date hereof or which may subsequently come into being.
Dated: 06Tl V7 Z'9 12024
CITY OF SHOR OOD, N OTA
011
By:
Marc evinski, City Administrator
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