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Home My WebLink About5.C.3. Authorize the execution of a stipulation of settlement between Conklin and the City of Shakopee Consent Business 5. C. 3• SHAKOPEE TO: Mayor and City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director DATE: 12/16/2014 SUBJECT: Authorize the Execution of a Stipulation of Settlement between Conklin and City of Shakopee (D) Action Sought Authorize the appropriate city officials to sign the Stipulation of Settlement in the condemnation matter between Conklin Company, Inc. and the City of Shakopee. Background On November 19, 2013, the City Council adopted Resolution No. 7378, a resolution authorizing eminent domain proceedings for the Valley Park Business Center Improvement Project. An attached Stipulation of Settlement has been negotiated by our attorneys with Conklin Company Inc. and is ready for City Council acceptance. The settlement amount is $50,000 for the parcels along with $5,000 for Conklins appraisal and reconstruction of Conklins driveway. The appraisal fee has been paid and driveway work has been done. The City has paid $11,900 toward the parcel taking and would owe the balance of$38,100.00 upon approval of this agreement. These costs have been included in the assessments for Emerson and Opus in the Valley Park Business Center Project costs. Recommendation Authorize the appropriate city officials to execute the Stipulation of Settlement in the condemnation matter of Conklin Company, Inc. and the City of Shakopee. Budget Impact Settlement costs have been included in the Valley Park Business Center project costs and assessments. Relationship to Vision This supports Goal D: Maintain, improve and create strong partnerships with other public and private sector entities. Requested Action Authorize the appropriate city officials to sign the Stipulation of Settlement in the condemnation matter between Conklin Company, Inc. and the City of Shakopee. Attachments: Stipulation of Settlement ••i�i Moss & Barnett December 3, 2014 VIA E-MAIL and U.S. MAIL Peter G. Mikhail Kennedy&Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402-1458 Re: City of Shakopee v. Conklin Company, Inc. Court File No. 70-cv-14-1565 Our File No. 25229.88 Dear Peter: Enclosed is the original Stipulation of Settlement in the above-referenced condemnation matter. I have signed it, as has our authorized client representative. Sin erely ph_4 • , hn P. Boyle orney at Law '. (612)877-5253 F: (612) :, -5018 John.Boyle @LawMoss.com JPB/peh Enclosure Sti s, •t, Hf' Sticet ; SJ to 1200 ! M++,neapohs, MN 55402 2 dig 87/ 3(7 ,0 r: 6!2-877 5991 W La',Moss con, STATE OF MINNESOTA DISTRICT COURT COUNTY OF SCOTT FIRST JUDICIAL DISTRICT Court File No: 70-CV-14-1565 City of Shakopee,a municipal corporation under Case Type: Condemnation Minnesota law, Petitioner, vs. Stipulation of Settlement Conklin Company, Inc.,a Minnesota Parcels 1 &2 corporation;et al. Respondents. THIS STIPULATION is made by and between the Petitioner City of Shakopee("City") and Respondent Conklin Company,Inc.,a Minnesota corporation("Owner"). RECITALS 1. The following recitals are a part of the parties' stipulation. 2. The Owner is the fee owner of the real property("Property") identified as Parcels 1 and 2 on Exhibit A to the court order approving the City's Petition(filed March 20,2014). A copy of an excerpt of Exhibit A,as it pertains to Parcels 1 and 2,is attached and incorporated herein. 3. Bremer Bank, National Association, ("Mortgagee") holds a mortgage on the Property. 4. Metropolitan Council, a public corporation and political subdivision of the state, f/k/a Metropolitan Sewer Board, and Northern States Power Company, a Minnesota corporation, hold easements across Parcel 1 of the Property;and Rosemount, Inc.,a Minnesota Corporation,and Opus Development Company, LLC, a Delaware limited liability company, (or their successors) hold easements across Parcel 2 of the Property. 1 5. The City commenced this condemnation action to acquire a permanent easement for right of way purposes and a temporary construction easement over, under, across and through portions of the Property for a street improvement project("Project"). 6. The City deposited $11,900.00 with the District Court Administrator's office on April 22,2014,as its approved,appraised value for Parcels 1 and 2("Deposit"). 7. The City and the Owner have reached a full and final settlement and compromise of the matters in dispute. AGREEMENT NOW, THEREFORE, in consideration of their mutual promises and other good and valuable consideration, it is hereby stipulated and agreed between the parties as follows: 1. Stipulation to Commissioners' Award. The City and the Owner agree to the issuance by the court-appointed commissioners herein of an award of damages for Parcels 1 and 2 in the total amount of$50,000.00 ("Settlement Amount") which is payable entirely to the Owner, and with zero dollars payable to all other respondents, in substantially the form attached hereto as Exhibit 1 ("Proposed Award"). The City and the Owner will jointly request the Proposed Award and will not appeal the Proposed Award.This settlement agreement is contingent upon the filing of the Proposed Award,and upon the expiration of the statutory appeal period without any appeal. All known respondents who may claim an interest in Parcels 1 and 2 will be given due notice of the commissioners' hearing and the award that is filed by the commissioners. In the event the court- appointed commissioners fail to issue the Proposed Award, or in the event any party appeals, this Stipulation of Settlement shall be null and void. 2. Payment of Settlement Amount.The Deposit will be credited against the Settlement Amount;and the Owner may request disbursement of the Deposit,together with accrued interest,at any time without further notice to any party. Within 10 business days after the expiration of the 2 statutory period to appeal from the Stipulated Award,without an appeal having been filed,the City shall p a Y to the Owner the balance of the Settlement Amount:$38,100. 3. Other Considerations. The parties agree to the following additional terms: a. The Owner acknowledges that it will not have to relocate as a result of the Project. i u b. In addition to the Settlement Amount, the City will reimburse the Owner up to the statutory limit of$5,000 for the cost of the Owner's appraisal. c. As additional consideration for this settlement, the City agreed to perform work to expand and reconstruct the Property's driveway access to Innovation Boulevard, consistent with the graphic depiction attached hereto as Exhibit 2. The Owner acknowledges that the City has performed this work. 4. Full and Final Compromise. The Owner and the City acknowledge that the terms and conditions of this Stipulation of Settlement constitute a full and final compromise of all matters in dispute with respect to Parcels l and 2. In consideration of the Settlement Amount and other terms and conditions of this Stipulation of Settlement,the Owner waives any and all claims it may have against the City in connection with this condemnation action, including without limitation,just compensation, statutory remedies, any other damages, interest, relocation benefits, appraisal fees, attorney fees, and costs and disbursements to which the Owner may otherwise be entitled. The Owner waives any and all rights to further notices, viewings, or hearings regarding this action, including without limitation the commissioners' hearing at which this Settlement Stipulation is presented. 5. Condemnation Action. After issuance of the Award of Commissioners and expiration of the statutory appeal period, the City will file a Final Certificate in this action with respect to Parcels 1 and 2, and record a discharge of lis pendens with respect to Parcels 1 and 2 in the Offices of the Scott County Recorder and Registrar of Titles. Each of the parties will bear its 3 own costs in connection with this action. The district court shall retain jurisdiction to enforce the terms of this Stipulation of Settlement. 6. Entire Agreement. The undersigned state and represent that they have fully read this Stipulation of Settlement,and that they each know and understand the consequences and legal effect thereof. This Stipulation of Settlement contains the entire agreement of the parties with regard to the matters set forth herein. 7. Execution. The parties agree that this Stipulation of Settlement may be executed in separate counterparts which,taken together,shall be and comprise one agreement. 8. Authority. The persons signing this Stipulation of Settlement in their representative capacities represent and warrant by signing this Agreement that it is their intent to bind their respective principals to the terms and conditions set forth herein, that the persons signing in their representative capacity have been authorized to bind their respective principals to such terms, and that it is the respective principals' intent to be so bound. Dated: %/ V le.;412/ OWNER—Conklin Co pany, Inc.,a Minnesota co ,•rai• ►-mac �• Its: ra*nO Dated: CITY OF SHAKOPEE By: Mayor By: City Manager 4 Dated: KENNEDY&GRAVEN,CHARTERED By: Peter G. Mikhail(#249907) Rylee J. Retzer(#0313166) Douglas D.Shaftel(#0391985) 470 U.S.Bank Plaza 200 South Sixth Street Minneapolis,MN 55402 (612)337-9300 ATTORNEYS FOR PETITIONER CITY OF SHAKOPEE Dated: Oe-G, 3 201 L( MOSS&BARNETT, a Professional Association / // By: ►,ir ) , J. P.Boyle(#186946) 1 South Fifth Street,Suite 00 Mi,neapolis,MN 55402 (612)877-5000 ATTORNEYS FOR RESPONDENT CONKLIN COMPANY,INC. 5 EXHIBIT A Parcel No. 1: Property I.D.272610010,Abstract and Torrens Certificate of Title No. 32104 Property Address: 551 Valley Park Drive,Shakopee,MN 55379 Description of Subject Property: Lot 1,Block 1,CONKLIN ADDITION,Scott County,Minnesota (the"Conklin Addition Property"). Description of easements to be taken: A temporary,non-exclusive easement for construction purposes over,under,across,and through that part of Lot 1,Block 1,Conklin Addition,according to the recorded plat thereof,which lies northerly of the following described line:Commencing at the Northwest corner of said Lot 1; thence South 05 degrees 29 minutes 36 seconds West,assumed bearing along the west line of said Lot 1, 10.16 feet,to the point of beginning of said line to be hereinafter described;thence South 74 degrees 13 minutes 54 seconds East,parallel with the north line of said Lot 1,267.86 feet;thence South 15 degrees 46 minutes 06 seconds West, 10.25 feet;thence South 74 degrees 13 minutes 54 seconds East,parallel with the north line of said Lot 1, 80.00 feet;thence North 15 degrees 46 minutes 06 seconds East, 10.25 feet;thence South 74 degrees 13 minutes 54 seconds East,parallel with the north line of said Lot 1, 113.34 feet to the east line of said Lot I and said line there terminating.(Torrens and Abstract Property) Said temporary easement to commence on April 15,2014 and expire on July 15,2014. Said temporary easement contains 5,396 square feet,more or less. Subject to easements of record,except as taken herein. Interests being acquired as to fee takings and encumbered as to easement takings within the taking areas described above: NAME NATURE OF INTEREST Conklin Company,Inc.,a Minnesota Fee Owner corporation Metropolitan Council,a public corporation Easement TI0384&T142852 and political subdivision of the state,f/k/a Metropolitan Sewer Board Northern States Power Company,a Minnesota Easement TI 53064 corporation Bremer Bank,National Association Mortgagee#210490,Assignment of Leases #210491 6 All other parties unknown,together with Any right,title or interest within the unknown successors,assigns,heirs,devisees acquired portion of the Subject Property and spouses, if any Parcel No.2: Property 1.D.272610011,Torrens Certificate of Title No. 12875 Property Address: unassigned Description of Subject Property: Outlot E, VALLEY PARK FIRST ADDITION,according to the plat thereof on file and of record in the Office of the Registrar of Titles in and for Scott County, Minnesota. (the"Valley Park First Addition Property"). Description of easements to be taken: A permanent easement for right of way purposes over,under,across and through all of the Valley Park First Addition Property. Said easement contains 16,390 square feet,more or less. Subject to easements of record,except as taken herein. Interests being acquired as to fee takings and encumbered as to easement takings within the taking areas described above: NAME NATURE OF INTEREST Conklin Company,Inc.,a Minnesota Fee Owner corporation Rosemount,Inc.,a Minnesota Corporation Easement T37539 Opus Development Company,LLC,a Easement T37539 Delaware limited liability company Bremer Bank,National Association Mortgagee#210490,Assignment of Leases #210491 All other parties unknown,together with Any right,title or interest within the unknown successors,assigns,heirs,devisees acquired portion of the Subject Property and spouses, if any 7 EXHIBIT 1—Proposed Stipulated Award 8 STATE OF MINNESOTA DISTRICT COURT COUNTY OF SCOTT FIRST JUDICIAL DISTRICT Court File No: 70-CV-14-1565 City of Shakopee,a municipal corporation under Case Type: Condemnation Minnesota law, Petitioner, vs. Award of Commissioners Conklin Company,Inc.,a Minnesota Parcels I &2 corporation;et al. Respondents. The undersigned commissioners, appointed by the above-named Court, having qualified according to law, hereby make the following award of damages with respect to the Petitioner's taking of property interests from Parcels I &2(as described on Exhibit A attached hereto) in the above-captioned matter, as of April 22, 2014, which is the date of taking, together with any interest that has accrued to the deposit: TO: Conklin Company,Inc.,a Minnesota corporation $50.000.00 TO: Bremer Bank,National Association; Metropolitan Council,a public corporation and political subdivision of the state,f/k/a Metropolitan Sewer Board; Northern States Power Company, a Minnesota $0.00 corporation; Rosemount, Inc., a Minnesota Corporation, and Opus Development Company, LLC, a Delaware limited liability company: TOTAL DAMAGES TO ALL PARTIES: $50,000.00 This award of damages is made after notice of viewing, notice of hearing, and an opportunity for possible claimants to be heard,and is based on the commissioners' viewing of said 9 between the City of Shakopee and real estate and the Stipulation of Settlement entered into betty pee p Y Respondent Conklin Company,Inc.,which the commissioners received and accepted. Dated: Joseph R.Cade,Commissioner Richard Black,Commissioner Steven Hosch,Commissioner 10 EXHIBIT A Parcel No. 1: Property I.D.272610010,Abstract and Torrens Certificate of Title No.32104 Property Address: 551 Valley Park Drive,Shakopee,MN 55379 Description of Subject Property: Lot 1,Block 1,CONKLIN ADDITION,Scott County,Minnesota (the"Conklin Addition Property"). Description of easements to be taken: A temporary,non-exclusive easement for construction purposes over,under,across,and through that part of Lot 1,Block 1,Conklin Addition,according to the recorded plat thereof,which lies northerly of the following described line:Commencing at the Northwest corner of said Lot 1; thence South 05 degrees 29 minutes 36 seconds West,assumed bearing along the west line of said Lot 1, 10.16 feet,to the point of beginning of said line to be hereinafter described;thence South 74 degrees 13 minutes 54 seconds East,parallel with the north line of said Lot 1,267.86 feet;thence South 15 degrees 46 minutes 06 seconds West, 10.25 feet;thence South 74 degrees 13 minutes 54 seconds East,parallel with the north line of said Lot 1, 80.00 feet;thence North 15 degrees 46 minutes 06 seconds East, 10.25 feet;thence South 74 degrees 13 minutes 54 seconds East,parallel with the north line of said Lot 1, 113.34 feet to the east line of said Lot 1 and said line there terminating.(Torrens and Abstract Property) Said temporary easement to commence on April 15,2014 and expire on July 15,2014. Said temporary easement contains 5,396 square feet,more or less. Subject to easements of record,except as taken herein. Interests being acquired as to fee takings and encumbered as to easement takings within the taking areas described above: NAME NATURE OF INTEREST Conklin Company,Inc.,a Minnesota Fee Owner corporation Metropolitan Council,a public corporation Easement T10384&T142852 and political subdivision of the state,f/k/a Metropolitan Sewer Board Northern States Power Company,a Minnesota Easement T153064 corporation Bremer Bank,National Association Mortgagee#210490,Assignment of Leases #210491 A-11 452692v1 MPF SH155-331 All other parties unknown,together with Any right,title or interest within the unknown successors,assigns,heirs,devisees acquired portion of the Subject Property and spouses,if any Parcel No.2:, Property 1.D.272610011,Torrens Certificate of Title No. 12875 Property Address: unassigned Description of Subject Property: Outlot E, VALLEY PARK FIRST ADDITION,according to the plat thereof on file and of record in the Office of the Registrar of Titles in and for Scott County,Minnesota. (the"Valley Park First Addition Property"). Description of easements to be taken: A permanent easement for right of way purposes over, under,across and through all of the Valley Park First Addition Property. Said easement contains 16,390 square feet,more or less. Subject to easements of record,except as taken herein. Interests being acquired as to fee takings and encumbered as to easement takings within the taking areas described above: NAME NATURE OF INTEREST Conklin Company, Inc.,a Minnesota Fee Owner corporation Rosemount, Inc.,a Minnesota Corporation Easement T37539 Opus Development Company,LLC,a Easement T37539 Delaware limited liability company Bremer Bank,National Association Mortgagee#210490,Assignment of Leases #210491 All other parties unknown,together with Any right,title or interest within the unknown successors,assigns,heirs,devisees acquired portion of the Subject Property and spouses,if any A-12 452692v1 MPF SH155-331 EXHIBIT 2—Driveway Access Depiction A-13 452692v1 MPF SHI 55-331