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HomeMy WebLinkAbout15.A.3. Declaring of Petition, Ordering an Improvement, Plans and Specs for Dean Lakes, Project 2004-4-Res. No. 6000 IS. fl. 3. CITY OF SHAKOPEE Memorandum TO: Mayor & City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Declaring Adequacy of Petition, Ordering an Improvement, Approve Plans and Specifications for Dean Lakes Improvements, Project No. 2004-4 DATE: January 20, 2004 INTRODUCTION: The developer of Dean Lakes (formerly Valley Green Corporate Center) has submitted a petition for the construction of Dean Lake Boulevard, Dean Lake Trail and Coneflower Lane within the plat of Dean Lakes and for the extension of sanitary sewer, watermain and storm sewer to these streets. BACKGROUND: The developer for Dean Lakes has petitioned the City to construct Dean Lake Boulevard, Dean Lake Trail, Coneflower Lane and utility extensions within the plat of Dean Lakes. The property owners have executed a petition for the improvements listed as attached. Attached is Resolution No. 6000, declaring adequacy of petition and ordering an improvement. With 100% of the property owners petitioning the improvement, no public hearing is necessary, thus the project can be ordered and design of roadways can commence. The design of these improvements were authorized earlier by a reimbursement agreement approved by the City Council on November 18,2003. The plans and specifications for these improvements are being done by WSB & Associates, Inc. as part of the reimbursement agreement. In discussions with the City Attorney, if these roadways are to be included as a 429 Special Assessment City project, the petitioning for the project is recommended and required as part of the platting process. The developer of Dean Lakes is requesting to proceed with the project of the major roads and utilities to serve the site. Part of the financial discussions with this project is for the City to install these improvements and assess the cost over a twenty-year period as part of the master agreement. Attached to this memo is the page in the master agreement referring to the assessments. The estimated cost ofthe improvements listed is $4,240,000.00 If Council agrees to accept the petition, then the appropriate actions would be to approve a resolution declaring the adequacy of the petition and order the preparation of plans. ALTERNATIVES: 1. Move to approve Resolution No. 6000, declaring adequacy of petition, ordering an improvement and preparation of plans and specifications for improvements to Dean Lake Boulevard, Dean Lake Trail, Coneflower Lane and utility extensions within the plat of Dean Lakes, as described in Exhibit "B" of the petition. 2. Do not approve Resolution No. 6000. 3, Table this item for additional information. RECOMMENDATION: Staff recommends Alternative No.1, if Council accepts the petition for a City project on roadways within Dean Lakes. If the Council does not want to proceed at this time, then voting against Resolution No. 6000 is the appropriate action. Proceeding with the project at this time is to accommodate the developer's schedule and is at their request and the entire project cost is 100% assessed to the developer. ACTION REQUESTED: Offer Resolution No. 6000, A Resolution Declaring the Adequacy of Petition, Ordering an Improvement and Preparation of Plans and Specifications for Dean Lake Boulevard, Dean Lake Trail, Coneflower Lane and Utility Extensions Within the Plat of Dean Lakes, Project No. 2004-4, and move its adoption. ~Lo~ Public Works Director BUpmp MEM6000 RESOLUTION NO. 6000 A Resolution Declaring Adequacy of Petition And Ordering An Improvement And The Preparation Of Plans And Specifications For Improvements To Dean Lake Boulevard, Dean Lake Trail, Coneflower Lane And Utility Extensions Within The Plat of Dean Lakes Project No. 2004-4 WHEREAS, a certain petition requesting construction of improvements to Dean Lake Boulevard, Dean Lake Trail, Coneflower Lane and utility extensions within the plat of Dean Lakes, has been filed with the Council on January 20,2004; and WHEREAS, this petition is hereby declared to be signed by 100 percent of the property owners affected thereby, no public hearing or notices are required, as per Minnesota Statutes Section 429.031, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA: 1. That the improvement is.ordered as hereinafter described: Dean Lake Boulevard, Dean Lake Trail, Coneflower Lane and utility extensions within the proposed plat of Dean Lakes including street construction, concrete curb & gutter, concrete median, grading, aggregate base, bituminous paving, turn lanes, storm sewer, sanitary sewer, watermain, street lighting, concrete sidewalk, bituminous trail and any appurtanant work. 2. Bruce Loney, Public Works Director, is hereby designated as the engineer for this improvement. He shall prepare plans and specifications for the making of such improvements. 3. The work of this project is hereby designated as part of the 2004-4 Public Improvement Program. Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of ,2004. Mayor of the City of Shako pee ATTEST: City Clerk I ARTICLE III Property Tax Abatement for Infrastructure Section 3.1. Status of Development Property. (a) The Developer has entered enter into a purchase .agreement to acquire f~e title to the Development Property. The City has no obligation to acquire the D~velopment Property or any portion thereof. (b) The Developer shall prepare and seek City approval of a planned unit development ("PUD") and plat of the Development Property (the "Plat") at Developer's cost and subject to all City ordinances and procedures. The plat and PUD must be consistent with the Master Site Plan, provided that nothing in this Agreement is intended to limit the City's authority in reviewing the PUD and plat, or to preclude revisions requested or required by the City. The parties acknowledge that Developer has submitted a preliminary Plat as of the date of this Agreement. Approximately 42 acres of the Plat and PUD must be designated for residential lots (the "Residential Property), approximately 36 acres (the "Commercial Property") must be designated for development of the Commercial Improvements, and approximately 90 acres (the "Business Park Property") must be designated for development ,of the Individual Improvements. (c) In connection with the Plat and POO, the parties agree and understand that the Developer and City will enter into the following related agreements with Developer: (i) a planned development agreement (the "PUD Agreement") that addresses the overall POD requirements for the entire Development Property, including any related open space easements or restrictive covenants or declarations, and (ii) a developers' agreement (the ''Developer's Agreement") that addresses cons~uction of infrastructure for each phase of development of the Development Property. : Section 3.2. Abatement for Infrastructure. (a)' Generally. The Business Park Property is currently encumbered, and will be addition~y encumbered, with special assessments for various infrastructure improvements. The City has determined that, in order to facilitate development of the Business Park Property, the City will retain Abatements from the Commercial Property pursuant to the Act, and will apply those Abatements to pay a portion of assessments for infrastructure levied or to be levied against the Business Park Property, all as de'scribed in more detail in this Section and in the Abatement Resolution. (b) Existing Assessments. Prior to the date of this Agreement, the City has levied special assessments against the Development Property to finance improvements to County Roads 83 and 16 adjacent to the Development Property (the "Existing Assessments"). Such assessments were levied in the aggregate principal amount of $3,734,572.78 payable in annual installments through 2012. Upon or after filing of the Plat, the City will allocate the Existing Assessments againstthe various portions of the Plat, including the Business Park Property, in accordance with City ordinances and procedures. (c) New Assessments. In connection with the development described in this Agreement, the City will construct additional infrastructure improvements within the Development Property, including roads, sanitary sewer, water and storm water improvements (referred to as the "Plan B Improvements" in the Development Agreement to be executed upon SJB-239S76vS 6 SH23S-12 approval of the initial Plat). The City will assess the cost of the Plan B Improvements against the various portions of the Plat (the "New Assessments"), including the Business Park Property, in accordance with the Developer's Agreement and City ordinances and procedures. The New Assessments will be payable in annual installments over 20 years with interest detennined by the City in accordance with its usual and customary procedures and policies, beginning with taxes payable in 2005. (d) Terms of Abatement. The City will retain Abatements from each Parcel of the Commercial Property in accordance with Article V of this Agreement and the Abatement Resolution. The term of the Abatement for each Parcel is 15 years, commencing with the first tax-payable year after substantial completion of Commercial Improvements on that Parcel. The Abatements for each Parcel tenninate on the earlier of (i) the date all Existing Assessments and New Assessments against the entire Business Park Property have been paid in full, or (ii) after the 15th year of collection of Abatements from that Parcel. (e) Application of Abatements. The City will receive Abatements semi-annually from the County along with the property tax settlement, and will apply such amounts as follows: First, to pay the next installment of principal and interest on the Existing Assessments against the Business Park Property; and Second, to pay the next install~ent of principal and interest o~ the New Assessments against the Business Park Property. Abatements will be applied pro rata to the outstanding Existing Assessments or"New Assessment (as the case may be) against each Parcel of the Business Park Property. As soon as reasonably practicable after each semi-annual tax settlement date, the City will calculate the total Abatements from all Parcels of .the Commercial Property, and will allocate the amount to be applied toward Existing or New Assyssments against each Parcel of the Business Park Property. The City will pay'the Abatements to the County on or before the next property tax payment date (May 15 or October 15, as the case may be), and will specify to the County the amounts allocated toward the assessments against each Parcel. At least 30 days. before such property tax payment date, .the City will'send the owner of each Parcel (the Developer or an Individual Developer, as the case may be) a written notice specifying the Abatement amounts to be paid by the City for that Parcel and the balance to 'be paid by the owner. Notwithstanding such notice requirement, the owner of each Parcel, its successors or assigns remains obligated to pay the full installment of Existing and New Assessments due on any tax payment date unless and until the owner receives actual notice of the portion paid by the City under this Section. (f) Limitations. The maximum Abatement applied toward Existing or New Assessments in any calendar year will not exceed the lesser of (i) 25% of the amount equal to City's Abatement Capacity for that year less the Certainteed Abatement for that year, or (ii) the aggregate installment of Existing Assessments and New Assessments against the entire Business Park Property due in that year. If the Act is amended to increase the City's Abatement Capacity, the percentage 'of Abatement Capacity in clause (i) will be reduced proportionately, and if the Act is amended to reduce the City's Abatement Capacity, the percentage of Abatement Capacity in clause (i) will be increased proportionately. The City's obligation under this section is payable solely from and to the extent of the Abatements, and nothing herein shall be construed to SJB-239576vS 7 SH23S-12 CITY OF SHAKOPEE PETITION FOR PUBLIC IMPROVEMENTS AND WAIVER OF ASSESSMENT RIGHTS RECITALS A. The undersigned is the contract for deed purchaser of certain real Propelty legally described in Exhibit A ("the Property"), which is being platted as Dean Lakes. B. As part of subdivision and platting process for Dean Lakes, the undersigned will be dedicating right-of-way for those Streets listed on Exhibit B. C, The undersigned desires the City of Shakopee to install the public improvements and assess the costs against the Property. D. The undersigned understands that those streets on Exhibit B will be designated as collector streets but that the assessments for them will be based on the equivalent local street costs in accordance with the City of Shakopee's ("City") assessment policy. E. It is understood by the undersigned that the City will be doing the Chapter 429 Public Improvements solely at the undersigned's request and for the undersigned's convenience and that the City would not be installing the improvements described in this petition without this waiver. F, The undersigned is voluntarily submitting this petition and understands that the City is relying on it as a condition of subdivision approval and proceeding with the public improvements. NOW, THEREFORE, the undersigned agrees as follows: 1. The undersigned petitions the City to install the following improvements and to assess them against the Property pursuant to Minnesota Statutes, Chapter 429; streets and all related 2 improvements listed on Exhibit B and shown on Exhibit C within the plat of Dean Lakes including street construction, turn lanes, storm sewer, sanitary sewer, watermain, street lighting, sidewalk, landscaping and bituminous trail and appurtenant work ("Improvement Project"). 2, The undersigned represents and warrants that it is the contract for deed purchaser of the Property and that it has the full legal authority and power to encumber the Property. 3. The undersigned request that he cost of the Improvement Project be assessed against the Property. The current estimated amount of the assessment is $ 4,664,520.00 , and the assessments will be levied over a period of 20 years. The undersigned understands that the exact amount of the assessments cannot be detennined at the present time, and understands that the final assessment will be determined in accordance with the City's adopted assessment policy. The undersigned understands that the waivers contained in this Petition are effective for the current estimated amount of the assessments and for any increases that are the result of requests made by the undersigned or any increases that are otherwise approved in writing by the undersigned. 4. Provided that the assessments are as described in paragraph 3, the undersigned waives notice of hearing and hearing pursuant to Minnesota Statutes 429,031 on the Improvement Project and notice of hearing and hearing on the special assessments to be levied in finance the Improvement Project pursuant to Minnesota Statutes 429.061 and specifically request that the Improvement Project be constructed and special assessments be levied without hearing against the Property, 5. Provided that the assessments are as described in paragraph 3, the undersigned waives all right to appeal or otherwise contest or challenge the levy of the special assessment, including but not limited to the right to challenge whether the increase in fair market value resulting from the construction ofthe improvement project is at least equal to the amount of the project cost that is assessed against the Property and that such increase in fair market value is a special benefit to such parcel. The undersigned fuliher agrees that any requirements of Minnesota Statues, Chapter 429 are waived to the extent that such requirements are not met. 6, The covenants, waivers and agreement contained herein shall run with the property and shall bind the heirs, successors and assigns of the undersigned, It is the intent of the City and the undersigned that this document be recorded as a part of the land records of Scott County, Minnesota, 7. The terms and conditions set forth ins this Petition shall telminate upon the final payment of all special assessment levied against the Property regarding the Improvement Project, and the City shall execute and deliver such document, in recordable form, as are necessary to extinguish its rights contained herein upon receipt of such final payment. 3 Dated this 1l day 01\ 'wt~ ,2004. RYAN COMPANIES US, INC. aMinnesota orporation By Its ...........'...........]1 '1f=~ STATE OF MINNESOTA ) )ss '.~ .' My CorI\lllIlIlIIl EJpI'" JIll at. 2lICI8 Iii . .,."., COUNTY OF tkt~ hQp 1\1\ ) The fUllt13instrument was acknowledged before I"e this li day o~ 2004, by a-VlSM , the \)i ce ~@de41;J- of Ryan Compani S, Inc., a Minnesota corporation, on behalf of the corporation. ~ ~t!htt. ~ Notary Public 1/ . ~ My Commission Expires 3' 08 Consent: The undersigned, the contract for deed seller of the Property, consents to the terms and conditions of this Petition by Ryan Companies US, Inc. Valley Green Business Park Limited Partnership By Valley Green Business Park, Inc., a Minnesota Corporation, s eneral Partner By Its STATE OF CONNECTICUT) )ss COUNTY OF FAIRFIELD ) '. d The fOregoinrc ins~ent was acknowledged bfJ,re lI)e this f,;Z ~day of MIflQ.~ , 2004, by LV. rev R-- I 2-, the }/ U..f.... 1~ of Va y Green siness Park Inc., a Minnesota corporation, as general partner of Valley Green Busi ess Park Li ited Partnership, a Minnesota limited partnership, on of the corporation and partnership. ~{ ~ . ' MAD LINE S, BUGEJA Drafted by: NOTARY PUBLIC Kennedy & Graven MY COMMISSiON EXPIRES 07/3112005 470 Pillsbury Center 200 S. Sixth Street Minneapolis, MN 55402 [I: Iclerkljudy\Deveagre IPetition-200 1] EXHIBIT A Le1!al Description Dean Lakes parcell: The Southeast Quarter of the Southeast Quarter of Section 9, Township 115, Range 22, Scott County, Minnesota. Being registered land as is evidenced by Certificate of Title No. 27854. Parcel 2: Lot A, REGISTERED LAND SURVEY NO.6, Scott County, Minnesota, EXCEPT Parcel 74, Minnesota Department of Transportation Right of Way Plat No. 70-11 as the same are on file and of record in the Office of the Registrar of Titles in and for Scott County, Minnesota. Being registered land as is evidenced by Certificate of Title No. 27850. Parcel 3: The Northeast Quarter ofthe Southeast Quarter of Section 9, Township 115, Range 22, Scott County, Minnesota; EXCEPT that part shown as Parcel 74 on Minnesota Department of Transportation Right of Way Plat No. 70-12 on file and of record in the Office of the Registrar of Titles in and for Scott County, Minnesota. Being registered land as is evidenced by Certificate of Title No. 27853. Parcel 4: The Southwest Quarter of the Southeast Quarter (SWl/4 ofSEl/4) of Section 9, Township 115, Range 22, Scott County, Minnesota, EXCEPT THE FOLLOWING: Commencing at a point 32 rods North of the Southwest comer of the Southeast Quarter, thence running East 13 rods, thence North 10 rods, thence in a Northwesterly direction about 13.70 rods to a point 46 rods North of said Southwest comer of the Southeast Quarter, thence South 14 rods to the place of beginning; EXCEPT that part shown as Parcel 74 on Minnesota Department of Transportation Right of Way Plat No. 70-11 on file and of record in the Office of the Registrar of Titles in and for Scott County, Minnesota. Being registered land as is evidenced by Certificate of Title No. 27854. ParcelS: Government Lots 1 and 2, and the West 601.13 feet of Government Lot 3, Section 10, Township 115, Range 22, Scott County, Minnesota, including the accretions and re1ictions thereto, EXCEPT that part of Government Lots 1 and 2 shown as Parcel 74 on Minnesota Department of Transportation Right of Way Plat No. 70-12 and that part of Government Lot 3 shown as Parcel 74 on Minnesota Department of Transportation Right of Way Plat No. 70-13, all in Section 10, Township 115, Range 22 on file and of record in the Office of the Registrar of Titles in and for Scott County, Minnesota. Being registered land as is evidenced by Certificate of Title No. 31775. Parcel 6: That part ofthe Southwest Quarter of the Southeast Quarter of Section 9, Township 115, Range 22, Scott County, Minnesota described as follows: Commencing at a point 32 rods North ofthe Southwest comer of the Southeast Quarter; thence running East 13 Rods; thence North 10 Rods; thence in a Northwesterly direction about 13.7 Rods to a point 46 Rods North of said Southwest comer of the Southeast Quarter; thence South 14 Rods to the place ofbegimling. Abstract Property Parcel 7: Tract B, REGISTERED LAND SURVEY NO. 172, files of the Registrar of Titles, Scott County, Minnesota. Being registered land as is evidenced by Certificate of Title No. 32371, EXHIBIT B Petition for Public Improvements Dean Lakes Shakopee, MN Streets and all related improvements to be constructed as part of the 429 Public hnprovements within Dean Lakes; . Dean Lakes Boulevard . Dean Lakes Trail . Coneflower Lane Utility Extensions (Sanitary and Watermains) between Highway 169 and Dean Lakes Blvd. Storm Sewer Extensions to Stormwater Ponds, #2912161\3 - -I DZOO)IIOI.~L1D. I W4l......bIfotw"'"'"' .m '~i i GOPHER STA TF ONE CAli till!! · . "'" aU.. ArM .,,-454-ClOO2 J I! I ...-- jii HIGHWAY ~Ol/ltl. BY-PA$S - i -1---- ! , (~~i '- t~' I HI -II t ip ~ I \ ----- Ill; ---- ----- --- j J Uj . HI, I !:n . a ifi -+-- I !Pill!l ..I",.. l! j j I' Ii ! III I ! .! I \ ,"I ill ~,! II! j II ~illltl!! ~lldlil . --.- u I \ f:J . E-l _1______ H l:Q -- - H - nuq ~ q . .. i~ ~i I;. f;r:l i !J ~ I' l' ./!; .:' . .., ... BII i / r/ t;;ii .. ..d ~! E 1 //l i Zr , tel : =t Silt DATA RESlOENnAL UNITS LEGEND ~ fl!!!l!g CARRIAGE lOWNHOMES: 18. -- ---- COMMERaAL AREA: t34 At lIlKICIl'''''V ---- - - - .t_UC flESlOENlIAl AREA: 42 At va.LACE LOTS: 82 "'-- - ..,.....,.__PC - 28 -- ._.._____~ w________ oPEN SPAt( AREA: 84 At S1pfGlE FAMilY: ~- ----- ----- ....... --- --- R.o.'H. AREk 13 AC TOTAl.: 29S ..."" -- IlIIlI:cr__ -- 273 At --- -- TotAL SITE AAEA: _or_"'" --...-..-- COMMERCIAL SF - ~~~ -.... , ITOTAL. COMl.lERCIAL Sf 1.185.083 SF I -- . . -- + - I - 6: 6: i -- I -- ~ , " il " '1 -