HomeMy WebLinkAbout15.C.4. Right-of-Way Acquisition Agreemetn with United Properties-Project 2003-3
CITY OF SHAKOPEE Is-, C t 'I
Memorandum ,
TO: Mayor & City Council
Mark McNeill, City Administrator
FROM: Bruce Loney, Public Works Director
SUBJECT: Approval of Agreements on Right-of-Way Acquisition with
United Properties on the 2003 Street Reconstruction,
Project No. 2003-3
DATE: February 17, 2004
INTRODUCTION:
Attached are agreements for right-of-way acquisition and temporary surface drainage
easement between the City of Shakopee and United Land, LLC in regard to the 2003 Street
Reconstruction Project. The purpose of this agenda item is for City Council to accept,
approve and to authorize the appropriate City officials to execute the agreement for right-of-
way acquisition associated with the United Land, LLC parcel on the 2003 Street
Reconstruction Project.
BACKGROUND:
On May 6, 2003, a public hearing was held on the 2003 Reconstruction Project No. 2003-3,
and Council ordered the improvement project to be designed on Fourth Avenue, from
Naumkeag Street to Shenandoah Drive; Viking Steel Road, from Fourth Avenue to c.R.
101; and Cavanaugh Drive, from Viking Steel Road to the Union Pacific Railroad crossing.
Also included in the actions for ordering the improvement and preparation of plans and
specifications, was for staff to obtain necessary right-of-way in order to construct the
improvements.
With the United Land, LLC parcel, which is adjacent to Viking Steel Road now named
Sarazin Street and also adjacent along 4th Avenue, from Sarazin Street to Shenandoah Drive.
This parcel, owned by United Land, LLC, recently had an AUAR done for the future
development of the Shenandoah Business Park. The agreement has the following items for
Council consideration and review, as this agreement was prepared by Kennedy & Graven as
part of the negotiations with the property owner and their attorney for the right-of-way
acquisition:
. The City will obtain right-of-way for Sarazin Street, north of 4th Avenue both
permanent and temporary easements and obtain right-of way along 4th Avenue, from
Sarazin Street to Shenandoah Drive, both permanent and temporary easements.
. The City will obtain the rights to drain the storm sewer along 4th Avenue on United
Land, LLC parcel, as in this area this is no storm sewer outlet until the Shenandoah
Business Park is developed in the future.
. The City will pay United Land, LLC $47,093.00 for the right-of-way associated on
4th Avenue which the City has done for all other parcels along 4th Avenue. United
Land, LLC is dedicating the right-of-way on Sarazin Street as part ofthis agreement.
Attached to this agreement are the exhibits, as contained within the agreement,
indicating the easements, which are necessary for the City to construct the
improvements for the 2003 Street Reconstruction Project.
City staff and the City Attorney's office have worked with the property owner and his
attorney to prepare these agreements. The property owner's attorney is currently on
vacation and will review the final revisions on Monday. Staff would recommend that these
agreements be entered into in order to obtain the easements and resolve the issue on
drainage for the 4th Avenue drainage system, which allows the 2003 Street Reconstruction
Project to move forward. The City Council would need to authorize the appropriate City
officials to enter into these agreements and authorize payment to United Land, LLC for the
easements.
ALTERNATIVES:
1. Authorize the appropriate City officials to execute the agreements regarding the
right-of-way acquisition between the City of Shakopee and United Properties.
2. Approve a motion to authorize payment of $47,093.00 to United Land, LLC, the
owner of Parcel No.5 ( P.LD. No. 27-905021-0) for easements associated with
the 2003 Reconstruction, Project No. 2003-3
3. Do not execute the agreements regarding right-of-way acquisition.
4. Do not authorize payment for easements to United Land, LLC.
5. Table for additional information.
RECOMMENDATION:
Staff recommends Alternative No.1 and No.2, as the City Attorney and the property
owner's attorney have come to an agreement on the right-of-way acquisition, which is
necessary for the 2003 Reconstruction Project and on the payment for easements.
ACTION REQUESTED:
1. Authorize the appropriate City officials to execute the agreements regarding right-
of-way acquisition and temporary surface drainage easement between the City of
Shakopee and United Properties for the 2003 Street Reconstruction Project No.
2003-3.
2. Approve a motion to authorize payment of $47,093.00 to United Land, LLC, the
owner of Parcel No.5 ( P.LD. No. 27-905021-0) for easements associated with
the 2003 Reconstruction, Project No. 2003-3
~neY
BUpmp
UNITEDPROPERTIES2-10-04
United Land LLC Pill #27-905-0210
EASEMENT AGREEMENT
THIS AGREEMENT is made by United Land, LLC, a Minnesota limited liability
company ("United") and the City of Shakopee, a Minnesota municipal corporation ("City").
Recitals
A. United is the fee owner of the certain real property in Scott County, Minnesota, as described
on the attached Exhibit A (the "Property").
B. United desires to grant to the City certain easements, according to the terms and conditions
contained herein.
Terms of Agreement
For good and valuable consideration, the parties agree as follows:
1. Right of Way Easements. United grants and conveys to the City perpetual easements for
public right of way purposes over, under, across and through those portions of the Property as
described on the attached Exhibit B. The easement granted in this paragraph includes the right of
the City, its contractors, agents, and employees to enter the premises at all reasonable times for
the purpose of locating, constructing, reconstructing, operating, maintaining, inspecting, altering
and repairing within the described easement area a public roadway, storm sewer, sanitary sewer,
water facilities, and sidewalk, or other public facilities, utilities, or improvements of any type
that are not inconsistent with a public right-of-way use. The easement also includes the right to
cut, trim, or remove from the easement area trees, shrubs, or other vegetation as in the City's
judgment unreasonably interfere with the easement or facilities of the City, its successors or
aSSIgns.
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2. Drainage, Pathway, and Utility Easements. United grants and conveys to the City perpetual,
non-exclusive easements for drainage, pathway and utility easements over, under, across and
through those portions of the Property as described on the attached Exhibit C. The easement
granted in this paragraph includes the right of the City, its contractors, agents, and employees to
enter the premises at all reasonable times for the purpose of locating, constructing,
reconstructing, operating, maintaining, inspecting, altering and repairing within the described
easement area a surface water drainage way, as well as storm sewer, sanitary sewer, or water
facilities, and a public pathway for use by pedestrians and non-motorized vehicles (except
motorized wheelchairs or similar devices used by disabled persons). The easement granted
herein also includes the right to cut, trim, or remove from the easement area trees, shrubs, or
other vegetation as in the City's judgment unreasonably interfere with the easement or facilities
of the City, its successors or assigns. If in exercising its rights under the preceding sentence, the
City, its contractors, agents or employees disturb the easement area or any other portion of the
Property, including any pavement, landscaping (other than the trees, shrubs or vegetation
trimmed or removed), structures or any other surface or subsurface conditions, City shall
promptly restore the same to its condition immediately prior to such disturbance. United reserves
the right to use all portions of the easement area for any purpose not inconsistent with the rights
hereby conveyed to City, including installation of other utility services through the easement area
and granting easements to third parties.
3. Temporary Construction Easement. United grants and conveys to the City temporary
easements for construction purposes over, under, across and through those portions of the Property
as described on the attached Exhibit D. The temporary easement includes the right of the City, its
contractors, agents, and employees to enter upon the described easement area at all reasonable
times for the purposes of construction, grading, sloping, and restoration purposes, and all
purposes ancillary thereto, together with the right to remove trees, shrubs or other vegetation in
the easement area, as well as the right to deposit earthen materials within the easement area and
to move, store, and remove equipment and supplies, and to perform any other work necessary
and incident to the project. The temporary easements granted in this paragraph shall expire on
December 31, 2005, unless earlier released by Grantee. Grantee agrees that after construction is
completed and upon United's request, City will file an instrument releasing the temporary
easement granted in this paragraph. United reserves the right to use all portions of the easement
area for any purpose not inconsistent with the rights hereby conveyed to City, including
installation of other utility services through the easement area and granting easements to third
parties.
4. Warranty of Title. United warrants it is the owner of the Property and has the right, title
and capacity to convey to the City the easements herein.
5. Environmental Matters. The City shall not be responsible for any costs, expenses,
damages, demands, obligations, including penalties and reasonable attorney's fees, or losses
resulting from any claims, actions, suits or proceedings based upon a release or threat of release
of any hazardous substances, pollutants, or contaminants which may have existed on, or which
relate to, the easement area or Property prior to the date of this instrument.
6. Indemnity. City shall indemnify, defend and save United harmless from all claims,
CAH-242641 v3 2
SH155-141
actions or damages of every kind and description, including claims for property damage or
personal injury, which accrue to or are suffered by any person or property, resulting from City's
activities in exercise of its rights under this easement and occurring in or about the easement area
or the Property (except to the extent arising from United's negligence or that of its contractors,
agents or employees). Nothing herein shall be deemed a waiver by the City of the limitations on
liability set forth in Minnesota Statutes, Chapter 466; and the City's obligation to indemnify shall
be limited to the limit on municipal liability set forth in Minnesota Statutes Chapter 466.
7. Relocation of Drainage, Pathway and Utility Easement. United reserves the right to
require City, at United's expense, to relocate all or any portion of the drainage, pathway and
utility easement area granted herein and the facilities located therein to other portions of United's
lands. United shall provide City not less than sixty (60) days' notice of any required relocation.
In the event of such relocation, this Agreement shall be amended to reflect such relocation.
8. Notices. Any notice, consent, waiver, request or other communication required or
provided to be given under this Agreement shall be in writing and shall be sufficiently given and
shall be deemed given when delivered personally or when mailed by certified or registered
United States mail, return receipt requested, postage prepaid, or when dispatched by nationally
recognized overnight delivery service, in any event, addressed to the party's address as follows:
If to Grantor: United Land LLC
Attn: George Burkards and Dale Glowa
3500 West 80th Street
Suite 200
Bloomington MN 55431
If to Grantee: City of Shakopee
129 South Holmes Street
Shakopee MN 55379
or to such party at such other address as such party, by ten (10) days' prior written notice as
given as herein provided, shall designate, provided that no party may require notice to be sent to
more than two (2) addresses. Any notice given in any other manner shall be effective only upon
receipt by the addressee.
9. Binding Effect. The terms and conditions of this instrument shall run with the land and
be binding on the United, it's successors and assigns.
STATE DEED TAX DUE HEREON: NONE
Dated this day of ,2004.
CAH-242641v3 3
SH155-141
Signature Page for United
UNITED LAND, LLC
By
Its
By
Its
STATE OF MINNESOTA }
ss.:
COUNTY OF HENNEPIN
The foregoing instrument was acknowledged before me this _ day of ,
2004, by and , the
and of United Land, LLC, a
Minnesota limited liability company, Grantor, by and on behalf of the Grantor.
Notary Public
NOTARY STAMP OR SEAL
CAH-242641v3 4
SH155-141
Signature Page for City
CITY OF SHAKOPEE
By
Its Mayor
By
Its City Clerk
By
Its City Administrator
STATE OF MINNESOTA }
ss.:
COUNTY OF HENNEPIN
The foregoing instrument was acknowledged before me this day of
, 2004 by John Schmitt, Judy S. Cox, and Mark McNeill, the mayor,
city clerk, and city administrator, respectively, of the City of Shakopee, a Minnesota municipal
corporation, Grantee, on behalf of the Grantee.
Notary Public
THIS DOCUMENT DRAFTED BY
AND RETURN DOCUMENT TO:
Kennedy & Graven, Chartered
470 Pillsbury Center
Minneapolis, MN 55402
(612) 337-9300
CAH-242641 v3 5
SH155-141
EXHIBIT A
Description of the Property
All that part of the North one-half of Section 5, Township 115, Range 22, Scott County,
Minnesota, lying South of the Southerly Right-of-way line of the Chicago, St. Paul, Minneapolis
and Omaha Railway Company as the same is now located and established over and across said
Section 5; Excepting therefrom the following three tracts:
TRACT NO.1. Beginning at a point on the South line of the Northeast Quarter of
said Section 5, which point is 2,026.60 feet West of the Southeast corner of said
Northeast Quarter; thence continuing West on said South line a distance of276.40
feet; thence Northerly at right angles to said South line a distance of 187.00 feet;
thence) Easterly at right angles a distance of 276.40 feet; thence Southerly a
distance of 187.00 feet to the point of beginning.
TRACT NO.2. That part of the East Half of the Northeast Quarter of said Section
5, Township 115, Range 22, Scott County, Minnesota, lying Southerly of the
Southerly right-of-way of the Chicago, St. Paul, Minneapolis and Omaha
Railroad.
TRACT NO.3. The West 1,234.91 feet as measured at right angles to the West
line thereof, of that part of the Northwest Quarter of Section 5, Township 115,
Range 22, Scott County, Minnesota, lying South of the Southerly right of way line
of the Chicago, St. Paul, Minneapolis and Omaha Railway Company, as the same
is now located and established over and across said Section 5. EXCEPTING
therefrom the South 639.08 feet, as measured at right angles to the South line
thereof on said Northwest Quarter of said Section 5.
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A-I
EXHIBIT B
Description of Right of Way Easements
A perpetual easement for public right of way purposes over, under, across and through the
following described lands:
The West 40.00 feet of the North 599.08 feet of the South 639.08 feet of the West Half of
the Northwest Quarter of Section 5, Township 115, Range 22, Scott County, Minnesota;
and
That part of the East Half of the Northwest Quarter of Section 5, Township 115, Range
22, Scott County, Minnesota which lies Southerly of a line drawn parallel with and
distant 45.00 feet Northerly of the Southerly line of said East Half of the Northwest
Quarter, and which lies Westerly of the roadway as described in Document No.261213;
and
That part of the West Half of said Northwest Quarter of Section 5, Township 115, Range
22, Scott County, Minnesota, which lies Southerly of a line drawn parallel with and
distant 40.00 feet Northerly of the Southerly line of said West Half of the Northwest
Quarter.
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B-1
EXHIBIT C
Description of Drainage, Pathway and Utility Easements
A perpetual, non-exclusive easement for drainage, pathway and utility purposes over, under,
across and through the following described lands:
The East 10.00 feet of the West 50.00 feet of the North 584.08 feet of said South 639.08
feet of the West Half of the Northwest Quarter of Section 5, Township 115, Range 22,
Scott County, Minnesota; and
The North 10.00 feet of the South 55.00 feet of said East Half of the Northwest Quarter
of Section 5, Township 115, Range 22, Scott County, Minnesota, lying Westerly of the
roadway as described in Document No. 2612l3; and
The North 10.00 feet of the South 50.00 feet of said West Half of the Northwest Quarter
of Section 5, Township 115, Range 22, Scott County, Minnesota, lying Easterly of the
Westerly 40.00 feet thereof.
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C-l
EXHIBIT D
Description of Temporary Construction Easements
A temporary easement for construction purposes over, under, and across the following described
lands:
The East 5.00 feet of the West 55.00 feet of the North 579.08 feet of said South 639.08 feet
of the West Half of the Northwest Quarter of Section 5, Township 115, Range 22, Scott
County, Minnesota; and
The North 5.00 feet of the South 60.00 feet of said East Half of the Northwest Quarter of
Section 5, Township 115, Range 22, Scott County, Minnesota, lying Westerly of the roadway
as described in Document No. 26l213; and
The North 10.00 feet of the South 60.00 feet of said West Half of the Northwest Quarter of
Section 5, Township 115, Range 22, Scott County, Minnesota, lying Easterly ofthe Westerly
50.00 feet thereof.
CAH-242641v3
SH155-141
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.mm S~AN~AH
United Land LLC PID #27-905-0210
TEMPORARY SURFACE DRAINAGE EASEMENT AGREEMENT
THIS INSTRUMENT is made by United Land, LLC, a Minnesota limited liability
company ("United"), Grantor, in favor of the City of Shakopee, a Minnesota municipal corporation
("City"), Grantee.
Recitals
A. United is the fee owner ofthe following described property in Scott County, Minnesota (the
"Property"):
All that part of the North one-half of Section 5, Township 115, Range 22, Scott
County, Minnesota, lying South of the Southerly Right-of-way line of the
Chicago, St. Paul, Minneapolis and Omaha Railway Company as the same is now
located and established over and across said Section 5; Excepting therefrom the
following three tracts:
TRACT NO. 1. Beginning at a point on the South line of the Northeast Quarter of
said Section 5, which point is 2,026.60 feet West of the Southeast comer of said
Northeast Quarter; thence continuing West on said South line a distance of 276.40
feet; thence Northerly at right angles to said South line a distance of 187.00 feet;
thence Easterly at right angles a distance of 276.40 feet; thence Southerly a
distance of 187.00 feet to the point of beginning.
TRACT NO.2. That part of the East Half of the Northeast Quarter of said Section
5, Township 115, Range 22, Scott County, Minnesota, lying Southerly of the
Southerly right-of-way of the Chicago, St. Paul, Minneapolis and Omaha
Railroad.
CAH-242664v4 1
SH155-141
TRACT NO.3. The West 1,234.91 feet as measured at right angles to the West
line thereof, of that part of the Northwest Quarter of Section 5, Township 115,
Range 22, Scott County, Minnesota, lying South of the Southerly right of way line
of the Chicago, St. Paul, Minneapolis and Omaha Railway Company, as the same
is now located and established over and across said Section 5. EXCEPTING
therefrom the South 639.08 feet, as measured at right angles to the South line
thereof on said Northwest Quarter of said Section 5.
B. United desires to grant to the City an easement, according to the terms and conditions
contained herein.
Terms of Easement
1. Grant of Easement. For good and valuable consideration, receipt of which is acknowledged
by United, United grants and conveys to the City a temporary easement for surface water drainage
purposes over and across that portion of the Property as shown on the attached Exhibit A. The
easement includes the right of the City to grade a drainage way as shown on the attached Exhibit A
but otherwise does not include the right to grade or alter the terrain or topography of the remainder
of the Property. United reserves the right to use all portions of the easement area for any purpose
not inconsistent with the rights hereby conveyed to Grantee, including installation of utility
services through the easement area and granting easements to third parties
2. Termination of Easement. The easement granted herein shall terminate upon the recording
of a plat subdividing the property or upon release by the City.
3. Warrantv of Title. United warrants it is the owner of the Property and has the right, title
and capacity to convey to the City the easement herein.
4. Wetland. United warrants, based upon an AUAR report of which the City has been
furnished a copy, that there are currently no wetlands on the Property that are subject to
regulation by the federal, state or local authorities. City warrants that the City's use of the
Property under this easement agreement will not create a wetland that is subject to such
regulation and further warrants that if the City's use of the Property does create a wetland that is
subject to regulation by federal, state or local authorities, the City shall be responsible at its sole
cost and expense for removing the wetland and performing any required mitigation.
5. Environmental Matters. The City shall not be responsible for any costs, expenses,
damages, demands, obligations, including penalties and reasonable attorney's fees, or losses
resulting from any claims, actions, suits or proceedings based upon a release or threat of release
of any hazardous substances, pollutants, or contaminants which may have existed on, or which
relate to, the easement area or Property prior to the date of this instrument.
6. Indemnity. City shall indemnify, defend and save United harmless from all claims,
actions or damages of every kind and description, including claims for property damage or
personal injury, which accrue to or are suffered by any person or property, resulting from City's
activities in exercise of its rights under this easement and occurring in or about the easement area
CAH-242664v4 2
SH155-141
or the Property (except to the extent arising from United's negligence or that of its contractors,
agents or employees). Nothing herein shall be deemed a waiver by the City of the limitations on
liability set forth in Minnesota Statutes, Chapter 466; and the City's obligation to indemnify shall
be limited to the limit on municipal liability set forth in Minnesota Statutes Chapter 466.
7. Binding Effect. The terms and conditions of this instrument shall run with the land and
be binding on United, it's successors and assigns.
STATE DEED TAX DUE HEREON: NONE
Dated this day of ,2004.
[remainder of this page left blank intentionally]
CAH-242664v4 3
SHl55-141
Signature Page for United
UNITED LAND, LLC
By
Its
By
Its
STATE OF MINNESOTA }
ss.:
COUNTY OF HENNEPIN
The foregoing instrument was acknowledged before me this _ day of ,
2004, by and , the
and of United Land, LLC, a
Minnesota limited liability company, Grantor, by and on behalf of the Grantor.
Notary Public
NOTARY STAMP OR SEAL
CAH-242664v4 4
SH\55-\4\
Signature Page for City
CITY OF SHAKOPEE
By
Its Mayor
By
Its City Clerk
By
Its City Administrator
STATE OF MINNESOTA }
ss.:
COUNTY OF HENNEPIN
The foregoing instrument was acknowledged before me this day of
, 2004 by John Schmitt, Judy S. Cox, and Mark McNeill, the mayor,
city clerk, and city administrator, respectively, of the City of Shakopee, a Minnesota municipal
corporation, Grantee, on behalf of the Grantee.
Notary Public
THIS DOCUMENT DRAFTED BY
AND RETURN DOCUMENT TO:
Kennedy & Graven, Chartered
470 Pillsbury Center
Minneapolis, MN 55402
(612) 337-9300
CAH-242664v4 5
SH155-141
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DRAFT LETTER FROM BRUCE LONEY
George 1. Burkards
United Land LLC
3500 West 80th Street
Minneapolis, MN 55431
Re: Temporary Drainage Easement
Property at Viking Steel Road and 4thA venue, Shakopee
Dear Mr. Burkards:
This will confirm the understanding that the City has reached with United Land LLC concerning the
temporary drainage easement dated , 2004 and granted by United to the City over the
above referenced property. We have agreed that the City's use of United's property for discharge of
storm water will be temporary, until such time as the United property develops.
Our expectation is that upon development United will be required to install one or more on-site
storm water holding ponds and related storm water pipes to connect those ponds to the City's storm
water drainage system. When that development occurs, unless the City has found an alternate
means of handling the storm water that the City has discharged on the property, United will oversize
its pond(s) and pipe(s) to accommodate the City's storm water needs, and the City will reimburse
United for the oversizing of the pond(s) and pipe(s) in conformance with then-existing storm water
drainage policies.
This will also confirm that the City will grant to United the right to directly discharge without
treatment storm water into the existing catch basins located in the City storm sewer system in
Fourth Avenue.
Finally, you indicated that United intends that the right of way and easements it has granted to the
City by instrument dated , 2004 will satisfy the City's dedication requirements for
streets and easements upon platting of the property. When the Property is submitted for plat
approval, the plat will include street and utility dedications at no cost or expense to the City of those
areas for which United has granted right of way, drainage, pathway and utility easements under the
, 2004 easement agreement. If the City determines that it needs additional road right-of-
way, drainage, pathway or utility easements, it must acquire any additional amount in excess of the
easements granted in the _, 2004 easement agreement by direct purchase or eminent domain.
If you have a different understanding, please inform me in writing at your earliest convenience.
Yours truly,
Bruce Loney
CAH-242669vl
SH155-141