HomeMy WebLinkAbout5.D.2. Agreement for Sanitary Sewer & Water Improvements
S. D. :L ,
CITY OF SHAKO PEE
Memorandum
TO: Mayor & City Council CONSEr~T
Mark McNeill, City Administrator
FROM: Bruce Loney, Public Works Director
SUBJECT: Approval of Agreement for Sanitary Sewer and
Water Improvements Between City of Shakopee and
Park Place Storage Condominiums
DATE: August 19, 2008
INTRODUCTION:
Attached is an agreement regarding sanitary sewer and water improvements and future
assessments, as prepared by Kennedy & Graven, between the City and Park Place Storage
Condominiums, Inc.
BACKGROUND:
A storage condominium land use proposal known as Minnesota River Valley Industrial Park has
been approved by Scott County and Jackson Township. This area is in a future urban reserve
area, per the County's plan. Attached is a location map showing the site in relation to the City's
west city limit line.
One of the requirements from the platting review is for the developer to plan for future sanitary
sewer and water improvements and to enter into an agreement with the City of Shakopee for
these improvements and waive their right to appeal assessments up to $250,000.00.
The agreement prepared by Kennedy & Graven does address the future City utility
improvements and assessment amount of $250,000.00 that could not be appealed. This
agreement would be recorded on the property so future land owners would be aware of future
improvements. The developer has agreed to pay 50% of the cost of the legal agreement as wel1.
This item was a condition required by the County in conjunction with the platting and does
provide the City with some protection of assessment appeals in the future. The actual timing of
the improvements could be years and the cost of improvements could rise above the estimated
$250,000.00 amount in the agreement. Nevertheless, it does provide the City with protection to
a certain dollar amount that cannot be appealed in the future.
ALTERNATIVES:
1. Authorize the appropriate City Officials to execute the agreement between the City of
Shakopee and Park Place Storage Condominiums, Inc. for sanitary sewer and water
improvements.
2. Do not authorize agreement.
3. Table for additional information.
RECOMMENDATION:
Staff recommends Alternative No.1.
ACTION REOUESTED:
Authorize the appropriate City Officials to execute the agreement between the City of Shakopee
and Park Place Storage Condominiums, Inc. for sanitary sewer and water improvements.
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Jorgensen/Minnesota River Valley EXHIBIT A N Exhibit A Location Map
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Industrial Park EA W LOCA TION OF PROJECT Drawn By: Seo" county
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AGREEMENT REGARDING SANITARY SEWER AND WATER
IMPROVEMENTS
This Agreement is entered into this _ day of , 2008 between Park
Place Storage Condominiums, Inc., a Minnesota corporation ("Park Place") and the City of
Shakopee, a Minnesota municipal corporation ("City").
RECITALS
A. Park Place is the owner of the Property legally described in attached Exhibit
A in Jackson Township, Minnesota ("Property").
B. Jackson Township is adjacent to the City.
C. Park Place is subdividing the Property into several lots, will develop a
portion of the Property as storage condominiums, and will make the
remainder available for development for such uses as allowed by applicable
ordinances, laws and regulations. The subdivision and development of the
Property is referred to as the "Project."
D. Currently Scott County ("County") has jurisdiction over the Project and is
processing all required land use approvals for the Project.
E. The Property will be served by wells and a septic system because the City
has not extended sanitary sewer and water services ("City Services") to a
location where it is feasible to extend the City Services to the Property at this
time.
F. The County is requiring that as a condition of the land use approvals required
for the Project, that the City and Park Place enter into an agreement to ensure
324919v5 SJS SH155-155 1
that the extension of City Services to the property will not be hindered in the
future by Park Place or the Project.
G. Park Place and the City desire and intend that at such time as the City
decides to extend the City Services to serve the Property that such extension
proceed as a public improvement project ("Public Improvement Project")
and it will not be hindered by Park Place or the Project.
NOW THEREFORE, in consideration of the mutual promises and covenants
contained in this Agreement, the City and Park Place agree as follows:
1. The Recitals set forth above are true and correct and are incorporated into
this Agreement.
2. In connection with the Public Improvement Project, the City or another
entity, may install, or need to install the City Services that serve, or are capable of serving
the Property or property adjacent to the Property. The obligation of Park Place to pay the
costs of the Public Improvement Project, as provided below, shall mean paying for the cost
of the City Services installed which actually serve the Property or are within the area of the
Property. With respect to any City Services that are within the area of the Property, Park
Place shall only be obligated to pay these costs if they are uniformly applied by the City
with respect to other properties that are also served by the facilities, in accordance with City
policy.
3. The amount to be paid by Park Place for the Public Improvement Project
shall include only the actual costs thereof, but shall include any design and administrative
expenses charged in accordance with the then current policy and practice of City with
respect to such projects, and shall be for the City Services serving the area of the Property
only.
4. The estimated cost of Park Place's portion of the Public Improvement
Project, including design and administrative expenses, is not expected to exceed $250,000.
5. In the event that the City decides to undertake the Public Improvement
Project, Park Place agrees to reimburse the City for Park Place's portion of the Public
Improvement Project costs up to a maximum amount of $250,000. Upon substantial
completion of the Public Improvement Project, the City shall invoice Park Place for the
actual amount. Park Place shall remit full payment to the City within thirty days of the date
of the invoice.
6. If Park Place fails to pay the amount due within thirty days of the date of the
invoice, the City may levy a special assessment on the Property. The estimated amount of
the special assessment which would be levied against the Property is $250,000. The terms
of the special assessment with respect to term and interest shall be in accordance with City
policy then in effect and as applied to substantially similar public improvement projects by
City.
324919v5 SJS SH155-155 2
7. If the special assessment is levied on the Property, Park Place waives and all
rights to appeal or otherwise contest or challenge the levying of the special assessment up to
a maximum of $250,000 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. Park Place further agrees that any
requirements of Minnesota Statutes Chapter 429 with respect to the adoption or levying of
the special assessment are waived to the extent that those requirements are not met.
Notwithstanding the foregoing, Park Place does not waive the right to enforce the terms and
conditions of this Agreement.
8. The covenants, waivers and agreements contained in this Agreement shall
run with the Property and shall bind the successors and assigns of Park Place. This
Agreement shall be recorded in the real estate records of Scott County, Minnesota.
9. If Park Place violates any of the covenants and agreements contained in this
Agreement which are to be performed by Park Place, the City shall have the option to
commence an action for monetary damages or specific performance against Park Place, and
Park Place agrees that the City shall be entitled to its administrative costs, legal costs and
reasonable attorneys' fees incurred in connection with that action.
10. 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 Park Place: Park Place Storage Condominiums, LLC
6415 County Road 19
Corcoran, MN 55357
Attn: Paul Jorgensen
324919v5 SJS SH155-155 3
IN WITNESS WHEREOF, the parties have hereunto set their hands the day and
year first above written.
CITY OF SHAKOPEE
By:
John Schmitt
Its: Mayor
By:
Mark McNeill
Its: City Administrator
By:
Judith S. Cox
Its: City Clerk
STATE OF MINNESOTA )
) ss
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of
, 2008 by John Schmitt, the Mayor of the City of Shakopee, Minnesota, on
behalf of said city.
Notary Public
324919v5 SJS SH155-155 4
STATE OF MINNESOTA )
) ss
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of
, 2008 by Mark McNeill, the City Administrator of the City of Shakopee,
Minnesota, on behalf of said city.
Notary Public
STATE OF MINNESOTA )
) ss
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of
,2008 by Judith S. Cox, the City Clerk of the City of Shako pee, Minnesota, on
behalf of said city.
Notary Public
324919v5 SJS SH155-155 5
PARK PLACE STORAGE
CONDOMINIUMS, INC.
By:
Its:
STATE OF MINNESOTA )
) ss
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of
. 2008 by . the of Park Place Storage
Condominiums~ Inc.~ a Minnesota corporation, on behalf of the corporation.
Notary Public
This document drafted by:
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
324919v5 SJS SHl55-155 6