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HomeMy WebLinkAbout15.A.1. Stipulation of Settlement for Valley View Rd Project 2001-5 / S. (1. I, CITY OF SHAKOPEE CONSENT Memorandum TO: Mayor & City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Approval of Stipulation of Settlement and Approval of Agreement on Payment of Special Assessments with John and Mary 0' Loughlin with Sarazin Street and Valley View Road Project No. 2001-5 DATE: March 4, 2003 INTRODUCTION: Attached is a Stipulation of Settlement between the City of Shakopee and John and Mary O'Loughlin on the eminent domain proceedings for certain property needed for the road and utility improvements for Sarazin Street and Valley View Road Project. Also, attached is an agreement for payment of special assessments between the City and the O'Loughlin's, as previously discussed with City Council. The purpose of this agenda item is for the City Council to accept and approve the Stipulation of Settlement and to authorize the appropriate City officials to execute the agreement for payment of special assessments. BACKGROUND: Associated with the Sarazin Street and Valley View Road Improvement Project, a number of easements were needed to construct the road and utilities. The City did enter into eminent domain proceedings by filing a petition of condemnation on April 26, 2002, and did provide a quick take payment to parcels that were needed on this project on July 24, 2002. John and Mary O'Loughlin are the owners of Parcel No.6, and staff along with the City Attorney have reached a settlement of final compensation for their permanent and temporary easements. The Stipulation of Settlement is a document that stipulates the agreement between the City and property owners and spells out the final payments for this matter. Previously, the City did pay the O'Loughlin's an amount of $10,340.00 and the remaining balance due to the O'Loughlin's is $2,000.00 for a total settlement amount of$12,340.00. This agreement is also contingent upon the approval of the City Council of Shakopee. Also, included is the agreement regarding the special assessment payments for the O'Louglin parcel. This agreement includes the provisions on payment of the special assessments to the O'Loughlin parcel which has the following highlights: . The property owner will pay the City a current assessment amount of $10,000.00 according to State Law and City Ordinances. . The O'Loughlin's waive their right to a public hearing, as required by Minnesota Statutes. . The O'Loughlin's agree to pay the City a principal amount of $3,500.00, plus interest, at the time the property is connected to public sanitary sewer. The interest rate would be 1.5% less than at the rate the City normally charges. . This agreement would be recorded on the property and would be binding on future property owners and heirs of the O'Loughlin's. Previously, staff had a benefit appraisal done on this property and the benefit appraisal amount was determined to be $15,000.00. The agreement with the O'Loughlin's provides for a 10% reduction in the assessment amount, a reduced interest rate on the assessment that is deferred and this deferred assessment does not need to be paid until the connection is made to the public sanitary sewer system. City Council would need to authorize the appropriate City officials to enter into this agreement. ALTERNATIVES: 1. Make a motion approving the Stipulation of Settlement for permanent and temporary easements for Parcel No.6 between the City of Shakopee and John and Mary O'Loughlin. 2. Authorize the appropriate City officials to execute an agreement regarding payment of special assessments between the City of Shakopee and John and Mary O'Loughlin. 3. Do not approve the Stipulation of Settlement. 4. Do not execute the agreement regarding payment of special assessments. 5. Table for additional information. RECOMMENDATION: Staff recommends Alternative No. 1 and No.2, as the City and the property owners have come to agreements for the right-of-way acquisition and in regard to special assessments, which would end any further condemnation action on this property acquisition. The agreement in regards to special assessments is consistent with Council direction and previous approval. ACTION REQUESTED: 1. Make a motion approving the Stipulation of Settlement for permanent and temporary easements for Parcel No.6 between the City of Shakopee and John and Mary O'Loughlin. 2. Authorize the appropriate City officials to execute an agreement regarding payment of special assessments between the City of Shakopee and John and Mary 0' Loughlin. ~n~ Public Works Director BUpmp 0' Loughlin Case Type: Condemnation STATE OF MINNESOTA DISTRICT COURT COUNTY OF SCOTT FIRST JUDICIAL DISTRICT City of Shakopee, a Minnesota municipal Court File No. 02-09197 corporation, Petitioner, vs. STIPULATION OF SETTLEMENT John O'Loughlin, et aI., PARCEL 6 Respondents. THIS STIPULATION is made as of February 20,2003 by and between Petitioner City of Shakopee ("City"), and John and Mary Ann O'Loughlin ("O'Loughlin"). WHEREAS, the City commenced eminent domain proceedings by filing a Petition of Condemnation on April 26, 2002 to acquire certain property necessary for road and utility improvements to Sarazin Street and Valley View Road in the City of Shakopee, Project No.2001-5; and WHEREAS, O'Loughlin is the fee owner of certain real estate located at 2111 Valley View Road East, Shakopee, Minnesota, and WHEREAS, the City desires to acquire permanent road right-of-way and a temporary easement over a portion of the O'Loughlin property, which is identified as Parcel 6 in the Petition filed herein; and WHEREAS, on July 24, 2002, the City made a payment to O'Loughlin in the amount of $10,340.00 (the "Quick-Take Payment") pursuant to Minn. Stat. Sl17.042, thereby acquiring title to and possession of Parcel 6; and PAC-227822vl 1 SHl55-118 WHEREAS, the parties to this Stipulation have negotiated a full and final settlement concerning the acquisition of Parcel 6 and desire to provide for compensation as provided herein. NOW, THEREFORE, the City and O'Loughlin agree as follows: 1. The foregoing recitals are incorporated into and made a part of this Agreement. 2. The City agrees to pay and O'Loughlin agrees to accept the total amount of $12,340.00 (the "Settlement Amount") as full and fmal settlement of the above-matter. This amount includes the quick-take payment already paid to O'Loughlin. 3. The City shall pay O'Loughlin the $2,000 balance due, within 10 business days after the Agreement has been fully executed and approved by the city council. 4. The City and O'Loughlin agree that the Settlement Amount includes all amounts due and owing in consideration for the taking of Parcel 6, including but not limited to amounts for just compensation, interest, and costs and disbursements, including appraisal and attorney fees, if any. 5. The City and O'Loughlin agree to the terms and conditions of the Agreement Re: Payment of Special Assessments (the "Assessment Agreement"), a copy of which Agreement is attached hereto as Exhibit A and to execute the Assessment Agreement contemporaneously with this Agreement. 6. The City and O'Loughlin agree that the house located on the subject premises shall be removed with the assistance of a controlled bum by the City of Shakopee Fire Department. O'Loughlin agrees to cooperate with the Fire Department to obtain the asbestos inspection required by the State of Minnesota prior to the demolition of the house and to pay all costs of the asbestos inspection and associated clean-up, if there are any. O'Loughlin agrees to remove all personal property and fixtures from the house prior to the bum, as may be PAC-227822vl 2 SH155-118 required by the Fire Department. O'LougWin further agrees to: clean up the premises after the bum and remove all debris and remnants of the demolition, grade the premises and fill any excavation to grade, remove the existing septic system and cap the well, all at their own expense. 7. O'Loughlin agrees to waive any and all rights to appeal and to any further notices, viewings, or hearings regarding the above-entitled condemnation action. 8. This Agreement is contingent upon the approval ofthe Shakopee City Council. O'LOUGHLIN John O'Loughlin Mary Ann O'Loughlin CITY OF SHAKOPEE Mayor City Administrator City Clerk PAC-227822vI 3 SH155-1I8 This space reserved for recording purposes AGREEMENT RE PAYMENT OF SPECIAL ASSESSMENTS This Agreement is entered into as of , 2003, by and between the City of Shakopee ("City") and John O'Loughlin and Mary O'Loughlin ("O'Loughlins"). RECITALS A. The O'Loughlins are the owners of a parcel of land ("Property") located at 2111 Valley View Road in the City. The Property's PID # is 27-917012-0 and the Property is approximately .33 acres in size. The legal description of the Property is contained on Exhibit A to this Agreement. B. The City is proposing to adopt special assessments on the Property with respect to the Valley View Road hnprovement Project, City Project No. 2001-5 ("Project"). The amount of the proposed assessment on the Property is $15,000.00. C. The O'Loughlins disagree with the amount of the proposed assessment. D. The O'Loughlins and the City desire to enter into this Agreement to settle their dispute over the amount of the proposed assessment and to set forth the obligations of the respective parties with respect to payment of the special assessment and related matters. Now therefore in consideration of the mutual covenants and conditions set forth in this Agreement, the City and the O'Loughlins agree as follows: 1. The Recitals are true and correct and are incorporated by reference into this Agreement. JJT-220289vl SH155-105 1 2. The City will reduce the amount of the special assessment on the Property to $10,000. The City will levy that amount on the Property, and the O'Loughlins will pay that amount in the manner required by state law and the City's ordinances and regulations. 3. The O'Loughlins waive notice of hearing and waive the right to the hearing required by Minnesota Statutes, Section 429.03l on the $10,000 special assessment to be levied on the Property. 4. The O'Loughlins waive any and all rights to appeal or otherwise contest or challenge the levying of the $10,000 special assessment 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 of the Project cost that is being assessed against the Property and that such increase in fair market value is a special benefit to the Property. The O'Loughlins further agree 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. 5. The O'Loughlins covenant and agree to pay the City the principal amount of $3,500.00 plus interest at the time that the Property is connected to public sanitary sewer. Simple annual interest shall accrue on the principal amount at an annual rate of 1.5% less than the annual interest rate that the City pays on the bonds that will be issued to finance the Project. Interest will accrue from the date of this Agreement until the date that the Property is connected to public sanitary sewer. 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 ofthe O'Loughlins. It is the intent of the City and the O'Loughlins that this Agreement be recorded as a part ofthe land records of Scott County, Minnesota. 7. 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 that the Property is connected to public sanitary sewer. JJT-220289v4 SH 155-1 05 City of Shakopee By Its Mayor By Its City Administrator By Its City Clerk STATE OF MINNESOTA ) ) ss COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this day of , 2003 by William P. Mars, Mayor; Mark McNeill, City Administrator and Judith S. Cox, City Clerk of the City of Shakopee, Minnesota, on behalf of said City. Notary Public, My Commission Expires: Jo1m O'Loughlin Mary O'Loughlin STATE OF MINNESOTA ) ) ss COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this _ day of , 2003 by John O'Loughlin and Mary O'Loughlin, Husband and Wife. Notary Public, My Commission Expires: JJT-220289v4 SH 155-1 05