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Home My WebLink About6.C.4. Approval of Assessment Agreement with Tollefson Development, Inc. for Project No. 2007-3 b. c. '1J CITY OF SHAKOPEE Memorandum i CONSENT I TO: Mayor & City Council Mark McNeill, City Administrator FROM: Joe Swentek, Project Engineer SUBJECT: Consider Approval of Assessment Agteement with Tollefson Development, Inc. for Pike Lake Roac\ Project No. 2007-3 I DATE: April 3, 2007 INTRODUCTION: Attached is an agreement for payment of special assessments with Tollefson Development, Inc. for the improvement of Pike Lake Road Project No. 2007-3, as approved by the City Attorney. BACKGROUND: Improvement of 1,100 feet of Pike Lake Road south of CSAH 16 and a public street 425 feet west of Pike Lake Road is necessary for a new elementary school to open in August 2007. Previously, City Council adopted Resolution No'. 6580, a resolution approving plans and specifications for Pike Lake Road, from CSAH 16 to 1,100 feet south of CSAH 16, Project No. 2007-3. This project is currently out for bids. Bids will be received on April 10, 2007 for this project and brought back to City Council on April 17, 2007 for consideration of award of contract. Tollefson Development, Inc. has requested all assessments associated with this project be placed on their remaining 114 acres and will enter into the attached agreement for payment of special assessments. Independent School District #720 purchased 20 acres from Tollefson Development, Inc. and as part of the purchase agreement Tollefson Development, Inc. has agreed to pay for the School District's portion of the assessments. ALTERNATIVES: 1. Authorize the appropriate City officials to execute the agreement for payment of special assessments for Pike Lake Road Project No. 2007-3. I 2. Do not authorize the appropriate City officials to execute this agreement. 3. Table for additional information. RECOMMENDATION: Staff recommends Alternative No. 1, as the agreement for payment of special assessments has been approved by the City Attorney and agreed upon by Tollefson Development, Inc. ACTION REQUESTED: I i Authorize the appropriate City officials to execute th~ agreement for payment of special assessments for Pike Lake Road Project No. 2007-3. . r&~ Joe SwenteK Proj ect Engineer JW/pmp/2007ENGRPROlECT/PIKELAKDRDIWORD/ENCROACHMENT-AGREEMENT This space reserved for recording purposes AGREEMENT RE PAYMENT OF SPECIAL ASSESSMENTS This Agreement is entered into as of , 2007, by and between the City of Shakopee ("City"), and Tollefson Development, Inc., a Minnesota corporation, ("Tollefson"). RECITALS A. Tollefson is the owner of a parcel of land ("Property") located on the West Side of Pike Lake Road south of Eagle Creek Boulevard (County Road 16) in the City. The legal description of the Property is attached as Exhibit A to this Agreement. B. The City has prepared a Feasibility Report dated January 8, 2007 ("Feasibility Report") pertaining to City Project 2007-3 ("Project") by which the City proposes to reconstruct Pike Lake Road south from Eagle Creek Boulevard for approximately 1100 feet south and to construct a new public road west from Pike Lake Road for approximately 425 feet. The Project also includes construction of sanitary sewer, water main, and storm sewer and the installation of street lights. C. Tollefson has agreed to pay the special assessments for all properties in the Project area, regardless of whether Tollefson owns those properties or not. Tollefson's agreement is based on the fact that the assessment will be calculated in accordance with the City's assessment policy based on a 36-foot wide roadway. In accordance with the Feasibility Report, the City will be responsible for any oversizing costs associated with the street, sanitary sewer, and storm sewer construction and Shakopee Public Utilities will be responsible for any oversizing costs associated with the water main construction costs. Tollefson has also agreed to pay for all costs associated with acquiring right of way or easements needed for the Project. 1 D. The estimated amount of the special assessments ~or which Tollefson will be responsible is approximately $700,000. Tollefson and the City ~esire to enter into this Agreement to set forth the obligations of Tollefson with respect to payment of those special assessments. i : Now therefore in consideration of the mutual covenants and conditions set forth in this Agreement, the City and Tollefson agree as follows: 1. The Recitals are true and correct and are incorporated by reference into this Agreement. 2. Upon substantial completion of the Project, the City will levy special assessments in accordance with the Feasibility Report. The current estimated amount of the special assessments to be levied against on the Property is $700,000. Subject to Paragraph 3 of this Agreement, Tollefson covenants and agrees to pay the actual amount of the special assessments in installments over the maximum period oftime allowable by state law and the City's ordinances and regulations. I I , 3. Tollefson agrees that the outstanding principal anq interest on the special assessments will become immediately due and payable if the Property is placed into Green Acres status or if Tollefson sells or conveys the Property to another party. I 4. Tollefson waives notice of hearing and waives I the right to the hearing required by Minnesota Statutes, Section 429.031 on the special assessment to be levied on the Property up to a maximum of $700,000. 5. Tollefson waives any and all rights to appeal or othelWise contest or challenge the levying of special assessments up to a maximum of $700,000 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. Tollefson 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. 6. 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 Tollefson. It is the intent of the City and Tollefson that this Agreement be recorded as a part of the land records of Scott County, Minnesota. 7. In the event Tollefson violates any of the covenants and agreements contained in this Agreement and to be performed by Tollefson, the City shall have the option to commence an action for specific performance requiring Tollefson's full and faithful performance hereunder, and Tollefson agrees that the City shall be entitled to its administrative costs, legal costs, and reasonable attorney's fees in connection with said action provided that the City is successful in such action. 8. 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 ofthe partie~ hereto are as follows: Ifto the City City ~dministrator City Hall 129 Holmes Street South Shak6pee, MN 55379 Ifto Tollefson Gary Wollschlager Tollefson Development, Inc. 17271 Kenyon Avenue Suite 103 Lakeville, MN 55044 9. Nothing in this agreement is intended to affect any .other payments that might be due to the City, or any other governmental entity, at the time mat the Property is platted or subdivided. City of Shakopee By Its Mayor By Its City Administrator By Its City Clerk Toll~fson Development, Inc. By Gary Wollschlager Vice President STATE OF MINNESOTA ) ) ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2007 by, Gary Wollschlager, Vice President of Tollefson Development, Inc. on behalf of said Corporation. STATE OF MINNESOTA ) ) ss COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this day of , 2007 by, John Schmitt, Mayor; Mark McNeill, City Administrator and Judith S. Cox, City Clerk of the City of Shakopee, Minnesota, on behalf of said City. EXHIBIT A . LEGAL DESCRIPTION OF THE PROPERTY That part of the Southwest Quarter of Section 14, Township 115, Range 22, Scott County, Minnesota, lying southerly of the center line !.of County Road No. 16, also known as Eagle Creek Boulevard, EXCEPT the following d~scribed parcel: , Commencing at the southeast comer of said Southwest Quarter of Section 14; thence North 0 degrees 18 minutes 13 seconds East, assumed bearing, along the east line of said Southwest Quarter, a distance of 1198.75 feet to the point of beginning of the land to be described; thence North 89 degrees 41 minutes 47 seconds West 314.88 feet; thence southwesterly 176.44 feet, along a tangential curve, concave to the southeast, having a radius of 400.00 feet, and a central angle of 25 degrees 16 minutes 23 seconds; thence North 31 degrees 36 minutes 25 seconds West, not tangent to the last described curve 118.74 feet; thence South 74 degrees 28 minutes 13 seconds West 140.73 feet; thence North 86 degrees 59 minutes 05 seconds West 446.87; thence North 0 degrees 17 minutes 27 seconds East 892.61 feet to the center line of County Road No. 16, also known as Eagle Creek Boulevard; thence South 76 degrees 11 minutes 41 seconds East, along said center line, a distance of 1162.51 feet to the eastJine of said Southwest Quarter; thence South 0 degrees 18 minutes 13 seconds West, along said east line, a distance of 666.45 feet to the point of beginning. 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" ~~ {r~~!I!~~~~~ ;* ~ ~;[ 8", qg: g ~~ig<:>a.g,~!a '"1 b o~ ~ 8 ~ 82 "'1'1 0 )> r r \....~ BOUNDAY SURVEY John Oliver & Associetes, Inc. DATE: 5/2/06 ~ DATE DESCRIPTION C'krU~~~.~~ BK/PG: ~ Ii PROPOSED RIDGEVIEW VILLAGE 58!1JJoCq<!.Ii...:-mre DRAWN BY:~ o ' Elk J1o;v"", ,y,r.nc,..ct<J:. CHECKED BY:--1ml::L ....\ FOR: (1t!i)44/-2()72 (FAt)4.f./-GM$ OWG: 1562.20EXB-F.DWG ZOf r. 7'rcw.~ ~ SuUe zoo TOLLEFSON DEVELOPMENT. INC. ~ I/N 66887 TEXT, NA (862)894-3046 (FAX)lJfU-8049 ALf NO.: 1562.20-03