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HomeMy WebLinkAbout4.C.3. Approve Pymt of Assessment with UP Railroad Co. for East Sewer Imprvmt. Project No. 7439Consent Business 4. C. 3. SHAKOPE E TO: Mayor and City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director DATE: 04/15/2014 SUBJECT: Approve a Payment of Special Assessments Agreement with the Union Pacific Railroad Company for the East Shakopee Industrial Sewer Improvements Project No. 2013 -4 (D) Action Sought Authorize the appropriate City officials to execute the Special Assessment Agreement between the Union Pacific Railroad Company and the City of Shakopee Background The City has awarded a contract to Heselton Construction Inc. for the East Shakopee Industrial Sewer Project. This project can provide service to the Union Pacific Valley Park switch yard building. Staff has worked with Union Pacific officials and our city attorney to prepare the agreement which Union Pacific has agreed to. This agreement has the assessment at $60,000 which is approximately the amount in the feasibility study. The reason for the agreement is the difficulty of proving benefit to railroad property and both sides wanted to memorialize the assessment amount and waiver of assessment in an agreement. Recommendation Staff recommends the execution of this agreement to secure an assessment with the railroad. Budget Impact This agreement assists in the project funding. Relationship to Vision This supports Goals D & E: Maintain, improve and creat strong partnerships with other public and private sector entities; and Deliver effective and efficient public services by a staff of well- trained, caring, and professional employees. Requested Action Authorize the appropriate City officials to execute the Special Assessments Agreement between the Union Pacific Railroad Company and the City of Shakopee. Attachments: Agreement legal description and map This space reserved for recording purposes AGREEMENT RE PAYMENT OF SPECIAL ASSESSMENTS This Agreement is entered into as of , 2014, by and between the City of Shakopee ("City'), and Union Pacific Railroad Company, a Delaware corporation, ( "Union Pacific "). RECITALS A. Union Pacific is the owner of a parcel of land ( "Property ") located near Stagecoach Road. The legal description of the Property is attached as Exhibit A to this Agreement. B. The City has prepared a Preliminary Engineering Report dated December • 12, 2012 ( "Engineering Report ") pertaining to City Project 2013 -4 known as the East Industrial Sewer Improvements ("Project") by which the City proposes to construct sanitary sewer to serve properties abutting CSAH 101 and Stagecoach Road from 70`x' Street to TH169. Union Pacific's Property is located hi the Project area. C. The City contemplates assessing the total Project costs to the properties in the Project area. D. The amount of the special assessments for which Union Pacific will be responsible is $60,000. Union Pacific and the City desire to enter into this Agreement to set forth the obligations of Union Pacific with respect to payment of those special assessments. Now therefore in consideration of the mutual covenants and conditions set forth in this Agreement, the City and Union Pacific agree as follows: 1. The Recitals are true and correct and are incorporated by reference into this Agreement. 441141A JJT SI1155 -291 2. Upon substantial completion of the Project, the City will levy special assessments in accordance with the Engineering Report. The amount that will be levied against the Property is $60,000. Union Pacific covenants and agrees to pay the special assessment in that amount in installments over the maximum period of time allowable by state law and the City's ordinances and regulations. Union Pacific waives notice of hearing and waives the right to the hearing required by Minnesota Statutes, Section 429.031 on the special assessment to be levied on the Property in the amount of $60,000. 4. Union Pacific waives any and all rights to appeal or otherwise contest or challenge the levying of special assessments of $60,000 against the Property, including but not limited to the right to challenge whether the increase in fair market value resulting from the Project is at least equal to the amount that is being assessed against the Property and that such increase in fair market value is a special benefit to the Property. Union Pacific further agrees that any requirements of Minnesota Statutes, Chapter 429 with respect to the adoption or levying of the special assessments are waived to the extent that those requirements are not met. 5. The covenants, waivers and agreements contained in the Agreement shall run with the Property and shall bind future owners of the Property and the heirs, successors and assigns of Union Pacific. It is the intent of the City and Union Pacific that this Agreement be recorded as a pant of the land records of Scott County, Minnesota. 6. In the event Union Pacific violates any of the covenants and agreements contained in this Agreement and to be performed by Union Pacific, the City shall have the option to commence an action for specific performance requiring Union Pacific's fill] and faithfill performance hereunder, and Union Pacific agrees that the City shall be entitled to its admilustrative costs, legal costs, and reasonable attorney's fees in connection with said action provided that the City is successfiil in such action. 7. Any notices permitted or required to be given or made pursuant to this Agreement shall be delivered personally or mailed by United States Mail to the addresses hereinafter set forth by certified or registered mail. Such notices, demand or payment shall be deemed timely given or made when delivered personally or when deposited in the United States Mail in accordance with the above. Addresses of the parties hereto are as follows: If to the City: City Administrator City Hall 129 Holmes Street South Shakopee, MN 55379 If to Union Pacific: 8. The City agrees that Union Pacific will not be required to pay any MCES Sewer Availability Charge (SAC) or City Sewer Availability Charge (SAC) or Tank Sanitary 2 SeNver Charge that Union Pacific would otherwise be obligated to pay when the property is connected to sanitary seNver. 9. Except as otherwise set forth in this Agreement, nothing in this Agreement is intended to affect any other payments that might be due to the City, or any other governmental entity, if the Property is platted or subdivided in (lie future. City of Shakopee By Its Mayor By Its City Administrator Union Pacific Railroad Company STATE OF MINNESOTA ) ) ss COUNTY OF ) SNTH..? ArJ The foregoing instrument was acknowledged before me this day of , 2014 by, of Union Pacific Railroad Company Inc. on behalf of said Corporation. STATE OF MINNESOTA ) ) ss COUNTY OF SCOTT ) The foregoing instrument was aeknoNvledged before me this clay of , 2014 by, Brad Tabke, Mayor; and Mark McNeill, City Administrator, of the City of Shakopee, Minnesota, on behalf of said City. This document drafted by: Kennedy & Graven, Chartered (JJT) 470 U.S. Bank Plaza 200 South 6 °i Street Minneapolis, MN 55402