HomeMy WebLinkAbout10/12/1994 JOINT W/SPUC TENTATIVE AGENDA
SHAKOPEE, MINNESOTA
ADJ.REG. SESSION OCTOBER 12 , 1994
LOCATION: City Hall, 129 Holmes Street South
Mayor Gary Laurent presiding
1] Roll Call at 5: 00 p.m.
2) Murphy's Landing Sublease - no action requested at this time
3] Other business;
4] Adjourn to Tuesday, October 18, 1994
COMMITTEE OF THE WHOLE OCTOBER 12 , 1994
LOCATION: City Hall, 129 Holmes Street South
Mayor Gary Laurent presiding
1] Roll Call at 5: 00 p.m.
2] Approval of Agenda
3] Approval of Minutes of August 30, 1994 and September 28 , 1994
4] Joint Meeting with Shakopee Public Utility Commission
a] Presentation by Jim Cook, SPUC President
b] Disposition of Old Park and Recreation Building
c]
d]
5] 1994 Comprehensive Plan Update Status
6] Set future meeting dates: November 8th and 22nd
7] Other business
8) Adjourn
Dennis R. Kraft
City Administrator
Next meeting: Tuesday, October 25th at 5: 30 p.m.
MEMORANDUM
TO: MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Karen Marty, City Attorne � /14
DATE: October 12, 1994
RE: Murphy' s Landing Sublease
At the last City Council meeting the City Council was asked to
consider a Recognition and Non-Disturbance Agreement with Paper
Warehouse for their proposed Halloween theme event, which is to be
held at Murphy' s Landing. The City Council asked staff to review
this in more depth.
Attached is a memo outlining many of the items of interest in
the sublease . This is being brought forward for review only at
this time. It will be placed on the October 17 agenda for
discussion and possible action.
MEMORANDUM
TO: MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Karen Marty, City Attorne e
DATE: October 12, 1994
RE: Murphy' s Landing Sublease
BACKGROUND:
At the last City Council meeting, a draft Recognition and Non-
Disturbance Agreement was presented. This agreement would have
allowed Paper Warehouse to continue to operate its Halloween theme
event, even if the lease between the City and Murphy' s Landing is
terminated. City Council tabled the agreement in order to allow
further review of the sublease between Murphy' s Landing and Paper
Warehouse, so that we may make certain that the City is comfortable
taking over that sublease if necessary.
REVIEW OF SUBLEASE:
Shirley Olsen, Executive Director of Murphy' s Landing, has
provided a copy of the sublease between Murphy' s Landing and Paper
Warehouse. Many of the concerns identified in earlier drafts have
been resolved. A copy of that sublease is attached for your
information.
Paper Warehouse wants a guaranteed period of operation for
several years, in order to recoup its investment . They have
requested that we execute the Recognition and Non-Disturbance
Agreement . That agreement provides that the City will step into
the place of Murphy' s Landing and follow the sublease, if the
City' s lease with Murphy' s Landing ends. Therefore, the City needs
to be comfortable with the provisions of the sublease.
A review of the sublease reveals the remaining areas of
interest or concern.
1 . Article 2 : This lease is exclusive. It gives Paper
Warehouse the exclusive use of the site starting the last full
weekend in September through the month of October. It is unclear
exactly when Paper Warehouse is to gain possession; if desired,
this could be revised to provide that Paper Warehouse has exclusive
use commencing 1 : 00 a.m. on the Saturday of the last full weekend
in September. An exclusive lease clarifies who is responsible for
the property at various times, but it also limits the landlord' s
use of the premises . City Council should decide if it is
comfortable with the exclusive provision.
2 . Article 6 : Paper Warehouse is not required to continue
the Halloween theme park throughout the term of the lease. Do we
want the right to terminate the lease if they skip a season, or is
it irrelevant so long as they pay the base rent?
3 . Article 6 : The City must be concerned with the protection
of the site and the patrons. Therefore, the City may want to
require that language be added describing Paper Warehouse' s plans
in this regard. In particular, we may want to require plans
satisfactory to the landlord that regulate the size, location, and
supervision of fire and flames; security; and safety or first aid.
4 . Article 8 : This gives the landlord the right to terminate
the lease at any time after seven years, by six months' prior
written notice. We may want to insert a date (November 1 or 30?) ,
and the phrase "for any reason" , so that no question would arise
regarding the validity of a termination.
5 . Article 9 : Paper Warehouse agrees to pay all utilities,
but it is not clear whether it will pay these directly or reimburse
the landlord. If the landlord is to pay these and get reimbursed,
then language should be added to enforce this provision. If Paper
Warehouse is to pay these directly, then we may want to add
language to provide that Paper Warehouse shall not permit any
discontinuance of, nor terminate, any utility.
6 . Article 10 : Paper Warehouse is given the right to attach
their facades to the existing buildings . Although presumably
Murphy' s Landing has worked something out so that the historic
structures will not be damaged, we may want to include language
requiring that the means of attachment be approved by the City.
7 . Article 10 : Paper Warehouse is required to remove all of
its improvements by November 20 of each year. No provision for
clean-up of debris is included, and enforcement language is absent .
The City may want to require a letter of credit, an agreement to
reimburse the City for clean-up costs, or something similar, to
address restoring the site each year.
8 . Article 14 : The landlord is required to keep the
buildings, improvements, and parking areas in good repair and good
condition. Do we want to be bound by this if we become the
landlord?
9 . Article 17 : The landlord is required to provide fire
insurance on the buildings, along with public liability insurance
for injury or death of persons or damage to property in the amount
of one million dollars . Do we want to agree to this if the City
becomes the landlord?
10 . Article 17 : The landlord insures the property, yet Paper
Warehouse has exclusive use for over a month. It seems that Paper
Warehouse should assume liability for that period of time. In
addition, the lease does not indicate who is liable for damage to
either the landlord' s or Paper Warehouse' s property during the time
the other has the primary use of the property. We may wish to
insert some language regarding this.
11 . Article 18 : The landlord sill repair or replace any
improvements damaged by fire or other casualty, if there is any
insurance proceeds. Are we comfortable with this requirement?
12 . Article 24 : The landlord agrees not to allow a Halloween
theme park on the site for three years after termination of the
lease with Paper Warehouse.
13 . Article 25 : Notices are to be served on parties at their
addresses . An address should be added for the City, in the event
the City becomes the landlord.
ALTERNATIVES :
1 . Select concepts above to insert into the Recognition and
Non-Disturbance Agreement, and direct staff to bring a revised
Recognition and Non-Disturbance Agreement to City Council for
consideration on November 1 .
2 . Authorize the appropriate City officials to execute the
Recognition and Non-Disturbance Agreement as presently written.
3 . Table for more information.
REQUESTED ACTION:
Discuss issues with lease and give direction to staff .
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10/7/94:IV
LEASE
INDEX
Article
1. Premises
2. Term
3. Rent
4. Additional Rent
5. Option to Renew
6. Use of Premises
7. Covenant of Title and Quiet Enjoyment
8. Early Termination
9. Zoning and Building Laws
10. Construction of Improvements
11. Compliance with Laws and Ordinances
12. Loss of Possession or Use
13. Trade Fixtures, Machinery and Equipment
14. Repairs
15. Taxes
16. Utilities
17. Insurance and Indemnifications
18. Damage to or Destruction of Improvements
19. Eminent Domain
20. Assignment and Subletting
21. Remedies of Landlord
22. Landlord's Access to Premises
23. Surrender of Premises
24. Covenant Not to Complete
25. Service of Notice
26. Successors and Assigns
27. Recording
28. Amendments
29. Invalidity of Provisions
30. Captions
31. Entire Agreement
32. Counterparts
33. Governing Law
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LEASE
THIS INDENTURE OF LEASE, made and entered into this day of
October, 1994, by and between Minnesota Valley Restoration Project (Murphy's
Landing), a non-profit corporation, hereinafter referred to as"Landlord"and Paper
Warehouse, Inc., a Minnesota corporation, hereinafter referred to as "Tenant":
ARTICLE 1.
PREMISES:
WITNESSETH: That Landlord, for and in consideration of the covenants
hereinafter contained and made on the part of the Tenant, does hereby demise and
lease to Tenant the following described Premises in the City of Shakopee, County of
Scott, and State of Minnesota, as described in"Exhibit A"attached hereto and made
a part hereof.
Together with all Landlord's rights,easements and appurtenances in adjoining
and adjacent land, highways, roads, streets, lanes, whether public or private, said
real estate being hereinafter referred to as the "Premises".
ARTICLE 2.
TERM:
TO HAVE AND TO HOLD the same for Tenant's exclusive use commencing the
last full weekend in September of each year and during the month of October for a
term of twenty-five (25) years commencing on Saturday, September 23, 1995, and
on the Saturday of the last full weekend in September in each year thereafter during
the Term hereof, subject to the provisions governing early termination contained in
Article 6.
The parties acknowledge that the Landlord uses and will use the Premises as
a"living history museum" during all other months of the year and on other weekends
in September and weekdays for prescheduled groups in September. Tenant, its
officers, employees, subcontractors and invitees shall be allowed free and
uninhibited access to the Premises during the months of July, August, September
and November for the purpose of constructing, removing and storing Tenant's
improvements which will be used on the Premises during the Term of this Lease. It
is understood that the access referred to in this paragraph shall not interfere with
Landlord's use of the Premises as a "living history museum".
ARTICLE 3.
ANNUAL BASE RENT:
Upon execution of this Lease, Tenant shall pay to Landlord the sum of Ten
Thousand Dollars ($10,000.00) to be applied to the Annual Base Rent for 1995. The
remaining balance of the Annual Base Rent for 1995 shall be paid on November 1,
1995. Thereafter, the Annual Base Rent shall be paid by Tenant to Landlord Ten
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I '
el% fig%
Thousand Dollars ($10,000.00) on the first day of September and the balance on the
first day of November in each year during the Term of this Lease.
1) In the first, second and third year of this agreement (1995, 1996 and
1997), the Annual Base Rent shall be the sum of Twenty-Five Thousand
Dollars ($25,000.00).
2) Beginning in the fourth year of this Lease, and every year thereafter,
the Annual Base Rent shall increase, over the preceding year, by a
percentage equal to the percentage increase, if any, in the Minneapolis/St.
Paul Consumer Price Index, all items, as promulgated by the U.S. Department
of Labor ("CPI"). The base for determining the percentage increase, if any,
in the fourth year will be the third quarter of 1997 CPI compared to the third
quarter of 1998 CPI. In no event shall the Annual Base Rent be less than the
Annual Base Rent paid in the preceding year.
All rent shall be payable at the address of the Landlord, as set forth in Article
25 hereof, unless otherwise specified, in writing, by Landlord.
ARTICLE 4.
ADDITIONAL RENT:
1) In addition to the Annual Base Rent set out in Article 3 above, Tenant
agrees to pay, as additional rental in any lease year the sum of the following
percentages of gross receipts (as hereinafter defined):
a) Five percent (5%) of all gross receipts over $500,000 and under
$600,000.
b) Six percent (6%) of all gross receipts over $600,000 and under
$700,000.
c) Seven percent (7%) of all gross receipts over$700,000 and under
$800,000.
d) Eight percent (8%) of all gross receipts over$800,000 and under
$900,000.
e) Nine percent (9%) of all gross receipts over $900,000 and under
$1,000,000.
f) Ten percent (10%) of all gross receipts over $1,000,000.00.
2) "Gross Receipts"shall be all sales revenues received by Tenant from its
use of the Premises including ticket sales, food sales and retail sales.
3) For purposes of this Article, gross receipts shall be first reduced by
any sales tax or other taxes included in the sales price or paid by Tenant.
4) Tenant shall submit to Landlord no later than December 31 of each year
during the Term of this Lease, at the place where rent is then payable, a
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complete statement showing in reasonable detail the amount of Tenant's gross
receipts during the prior lease year. All payments of additional rent, if any,
shall be due with the statement.
5) Tenant shall keep a full and accurate set of books adequately showing
the amount of gross receipts by Tenant in each period as aforementioned.
Landlord and its duly authorized representatives, during the Term hereof,
shall have the right to inspect Tenant's books and records and any other data
in any way pertaining to gross receipts and Tenant agrees to keep such
books, records and data at a convenient place. Such records shall be kept,
maintained and available for inspection by Landlord and its agents for at least
two (2) years after the end of the appropriate period for which Tenant has
furnished Landlord with a written statement of gross receipts.
ARTICLE 5.
OPTIONS TO RENEW:
Unless earlier terminated as hereinafter provided, Tenant shall have the
option to renew this Lease for two (2) successive terms of ten (10) years each under
the same terms, conditions, and provisions as are in effect as of the last day of the
term of this Lease. Each renewal option, to be effective, must be exercised by
Tenant by written notice of such exercise mailed to Landlord no less than six (6)
months prior to commencement date of such renewal term. Any such notice of
exercise of any such option shall be mailed pursuant to the notice provisions of
Article 25 hereof.
ARTICLE 6.
USE OF PREMISES:
It is contemplated by Tenant that the demised Premises will be used for the
operation of a Halloween Theme Park. Howevernothing herein contained shall be
construed to require Tenant to continue its business operations upon the demised
Premises throughout the term of this Lease. Tenant shall have the right to terminate
this Lease at any time by six (6) months prior written notice to Landlord mailed
pursuant to the notice provisions of Article 25 hereof.
During the months of July and August of each year, commencing in 1885,
Tenant,its officers, employees,agents,contractors and invitees may enter upon the
Premises for the purpose of constructing the stages, "haunts", facia, storefronts
and other structures that Tenant will use for its Halloween Theme Park event.
Tenant will use its best efforts during these months not to interfere with Landlord's
use of the Premises. Tenant shall have the use of all parking areas and all drives
and means of access to public roads.
ARTICLE 7.
COVENANT OF TITLE AND QUIET ENJOYMENT:
Landlord covenants that Landlord is well seized of and has the right to
sublease the Premises. If, at any time, Landlord's right to receive rent hereunder
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is disputed or there is a change of ownership of Landlord's estate, by act of the
parties or operation of law, Tenant may withhold rent thereafter accruing until
Tenant has been furnished proof satisfactory to it as to the party entitled thereto.
Landlord shall obtain, prior to its execution of this Lease, a Recognition and Non-
Disturbance Agreement from the City of Shakopee in the form attached hereto as
Exhibit B.
ARTICLE 8.
EARLY TERMINATION:
Landlord shall have the right to terminate this Lease at any time after
November, 2002, by six (6) months prior written notice to Tenant mailed or delivered
pursuant to the notice provisions of Article 25 hereof.
ARTICLE 9.
ZONING AND BUILDING LAWS:
thepresent
use of the Premises by Tenant shall be in conformance with pre nt
zoning classification and local laws and ordinances applicable to the demised
Premises. Tenant has thoroughly inspected the subject Premises and is familiar with
the present existence, or non-existence, and availability of public water, sanitary
sewer, storm sewer service, electric current and telephone facilities. Landlord shall
have no duty to provide or improve any such utility. Tenant shall pay all costs
associated with providing or improving such utility over that which currently exists.
ARTICLE 10.
CONSTRUCTION OF IMPROVEMENTS:
Tenant agrees to construct, at its sole cost and expense, temporary or
moveable structures upon the demised Premises to include a"haunted hayride"with
appropriate building facades. It is the intent of the parties that Tenant will not use
the interior of Landlord's historical buildings nor will Tenant deface said structures
in any way. Tenant may attach facades to the existing buildings and use them as
backgrounds for its Halloween Theme Park. The Tenant shall, after October 81 of
each yearremove all of its improvements no later than the 20th of November of each
year of this Lease.
Landlord shall make available for use by Tenant as a storage facility the
building marked on Exhibit A. The parties acknowledge that in its present condition
this building may not be satisfactory as a storage facility and that any and all
improvements required shall be made at Tenant's sole cost and expense. The parties
further acknowledge that Landlord and Tenant may each use a portion of the
building for storage of their property items. Any materials or other property stored
by Tenant shall be at Tenant's sole risk. Landlord shall allow Tenant to construct,
at the sole cost and expense of Tenant, at a location on the Premises to be mutually
determined by Landlord and Tenant, a structure for the storage of Tenant's
materials and other property.
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It is contemplated by the parties that the Tenant, at its sole cost and expense,
may build a "haunted house" on the demised Premises which haunted house, if
constructed, shall be a permanent improvement to the demised Premises and not
removed annually. The haunted house shall be constructed on that portion of the
demised Premises as approved by Landlord. The design of the proposed "haunted
house" shall be aesthetically consistent with the other structures on the Premises.
Tenant shall submit the design of the proposed structure to the Landlord for
Landlord's approval. The submitted design shall be deemed approved if Landlord
shall not object thereto, in writing, within ten (10) business days from the date of
its submission by Tenant to Landlord. Upon termination of this Lease, the haunted
house shall be removed from the demised Premises at the cost and expense of Tenant.
Tenant shall keep the demised Premises free and clear of all liens and
enoumbrances.
Tenant acknowledges that any improvements constructed or located on the
Premises are subject to becoming the property of the City of Shakopee pursuant to
the underlying lease agreement between Landlord and the City of Shakopee.
Landlord and Tenant acknowledge that it will be to their mutual benefit to
provide signage at the public access to Murphy's Landing, and Landlord and Tenant
agree to determine and provide for mutually acceptable signage.
ARTICLE 11.
COMPLIANCE WITH LAWS AND ORDINANCES:
• Tenant shall comply with all Federal, State, County and City laws and
ordinances and all rules and regulations of any duly constituted authority, present
and future, affecting or respecting the use or occupancy of the demised Premises by
Tenant or the business at any time thereon transacted by Tenant or any assignee or
sublessee of Tenant, after the commencement of the term of this Lease upon demand
of any authority having jurisdiction thereof.
ARTICLE 12.
LOSS OF POSSESSION OR USE:
If at any time during the Term of this Lease or any extension thereof, Tenant
shall, through no act, default or neglect on its part, be deprived of possession of
the demised Premises or any material portion thereof or the use of the demised
Premises for the purposes contemplated by Tenant, for any reason, including, but
not limited to, any limitation of access to the demised Premises or any re-zoning or
other governmental action which would prohibit the operation of the business
contemplated by Tenant, then, and in any such event, Tenant shall have the right
to terminate this Lease upon giving Landlord ten (10) days written notice of its
intention to so terminate, in accordance with the provisions of Article 25 hereof.
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eiN
ARTICLE 13.
TRADE FIXTURES, MACHINERY AND EQUIPMENT:
Landlord agrees that all trade fixtures, machinery, equipment, furniture
temporary or moveable improvements and structures or other personal property of
whatever kind and nature kept or installed on the demised Premises by Tenant or by
Tenant's assignees or sublessees shall not become the property of the Landlord or
a part of the realty, no matter how affixed to the demised Premises and may be
removed by Tenant or its assignees or sublessees, in their discretion, at any time,
and from time to time, during the entire term of this Lease and any renewals.
• Tenant, at its sole cost and expense, shall repair any damage caused by the removal
of such property.
ARTICLE 14.
REPAIRS:
Landlord shall, at all times during the Term of this Lease, at its own cost and
expense, keep and maintain or cause to be kept and maintained in repair and good
condition, ordinary wear and tear and the provisions of Article 18 hereof excepted,
all buildings, improvements and parking areas at any time constructed on the
demised Premises and shall use all reasonable precautions to prevent waste, damage
or injury thereto. Tenant shall, at all times during the Term of this Lease, at its
own cost and expense, keep and maintain or cause to be kept and maintained and in
repair and good condition, ordinary wear and tear excepted, all temporary or
moveable improvements and structures and the haunted house, if constructed.
ARTICLE 15.
TAXES:
Tenant agrees that it will indemnify Landlord and pay all taxes which become
payable by Landlord as a direct result of Tenant's use of the Premises and which,
except for Tenant's use of the Premises, would not otherwise be payable by
Landlord. This shall include real estate taxes and special assessments, if any,
which are assessed against Tenant's improvements on the demised Premises.
ARTICLE 16.
UTILITIES:
Tenant agrees that it will pay all costs for water, sewer, gas, electric
current, other utilities and trash removal used, consumed or wasted upon or in
connection with the demised Premises during the months of the Term hereof, and of
any renewals thereof, as Tenant shall use on the Premises, as and when the charges
for the same shall become due and payable.
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ARTICLE 17.
INSURANCE AND INDEMNIFICATION:
Landlord shall, at its own cost and expense, carry and maintain fire insurance
with extended coverage endorsements on all buildings (except the haunted house,
if constructed) located on the demised Premises together with public liability
insurance indemnifying Landlord and Tenant against all claims for injury or death
of persons or damage to property which may be claimed to have occurred upon the
Premises in the amount of One Million Dollars ($1,000,000.00).
Tenant shall procure, keep in force and pay for comprehensive public liability
insurance indemnifying Landlord and Tenant against all claims and demands for
injury to or death of persons or damage to property which may be claimed to have
occurred upon the Premises in the amount for injury or death of One Million and
No/100 Dollars ($1,000,000.00) together with fire insurance with extended coverage
endorsements on the haunted house and storage facility, if constructed.
ARTICLE 18.
DAMAGE TO OR DESTRUCTION OF IMPROVEMENTS:
If the improvements on the Premises shall be damaged or rendered
untenantable by fire or other casualty, Landlord shall;to the extent required in the
underlying lease agreement between the Landlord and the City of Shakopee, and to
the extent of funds available from insurance proceeds, repair or replace said
improvements, and the same shall be completed within a reasonable time thereafter.
However, it is further agreed that the rent herein required to be paid shall abate
during said period in an amount proportionate to the decrease in the utility of the
Premises to Tenant.
ARTICLE 19.
EMINENT DOMAIN:
If the whole or any part of the demised Premises shall be taken for any public
or quasi-public use under any statute or by right of eminent domain or by private
purchase in lieu thereof, Tenant reserves unto itself the right to prosecute its claim
for an award based upon injury caused to its leasehold interest by such taking,
without impairing any rights of Landlord for the taking of or injury to the reversion.
ARTICLE 20.
ASSIGNMENT AND SUBLETTING:
Tenant may not assign or sublet this Lease without the prior written consent
of Landlord; provided, however, Tenant may, without the consent of Landlord,
assign this Lease or its rights hereunder, or sublet all or any part of the demised
Premises at any time, and from time to time, during the Term of this Lease without
restriction, to an entity (entities) owned or controlled by Yale T. Dolginow and/or
Brent D. Schlosser. Tenant agrees to furnish to Landlord written notice of such an
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assignment or sublease within thirty (80) days thereafter, together with the name
and address of the assignee or sublessee.
ARTICLE 21.
REMEDIES OF LANDLORD:
If Tenant shall fail to pay any installment of rent promptly on the day when
the same shall become due and payable hereunder and shall continue in such default
for a period of five (5) business days after written notice thereof by Landlord or if
Tenant shall fail to promptly keep and perform any other affirmative covenants of
this Lease, strictly in accordance with the terms of this Lease, and shall continue in
default for a period of thirty (30) days after written notice thereof by Landlord of
default and demand of performance, then, and in any such event, and as often as
any such event shall occur, Landlord may, in addition to any other remedies
available at law, (a) declare the said term ended and enter into said Premises, or any
part thereof, either with or without process of law and expel Tenant or any person
occupying the same in or upon said Premises, using such force as may be necessary,
and to repossess and enjoy said Premises as in Landlord's former estate. or b) relet
the Premises, applying said rent from the new tenant of the demised Premises against
the rent payable by Tenant hereunder, and Tenant shall be responsible for no more
than the balance that may be due, should a balance exist. However, if any default
shall occur, other than in the payment of money, which cannot with due diligence be
cured within a period of thirty (30) days, and if Tenant prior to the expiration of
thirty (30) days from and after the giving of the notice as aforesaid, commences to
eliminate the cause of such default and proceeds diligently and with reasonable
dispatch to take all steps and do all work required to cure such default and does so
cure such default, then Landlord shall not have the right to declare the term ended
by reason of such default.
ARTICLE 22.
LANDLORD'S ACCESS TO PREMISES
Landlord shall have reasonable rights of access to the demised Premises for
the purpose of inspecting the condition thereof from time to time throughout the term
of this Lease and any renewals thereof.
ARTICLE 23.
SURRENDER OF PREMISES:
Tenant shall, after the last day of the term or any extension thereof or upon
any earlier termination of such term, surrender and yield up to Landlord the
Premises In good order, condition and state of repair, reasonable wear and tear and
the provisions of Article 18 hereof excepted.
ARTICLE 24.
COVENANT NOT TO COMPETE:
Landlord agrees that, during the Term hereof and for three (3) years
thereafter, it shall not, except with the written consent of Tenant first had and
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i
obtained, directly or indirectly engage in or acquire any financial or beneficial
interest in or grant a Lease to any person or entity to engage in a Halloween Theme
Park.
ARTICLE 25.
SERVICE OF NOTICE:
Every notice, approval, consent or other communication authorized or
required by this Lease shall not be effective unless the same shall be in writing and
personally delivered or sent postage prepaid by United States registered or certified
mail, return receipt requested and (a) if intended for Landlord shall be addressed
to:
Murphy's Landing
2187 E. Hwy 101
Shakopee, MN 55379
ATTN: Executive Director
and (b) if intended for Tenant shall be addressed to:
Paper Warehouse, Inc.
7634 Golden Triangle Drive
Tech 8 Center
Eden Prairie, MN 55344
ATTN: Yale T. Dolginow
or to such other address as either party may designate by notice given from time to
time in accordance with this Article. Any notice given in accordance with the
provisions of this Article shall be deemed to have been given two (2) days after the
date such notice shall have been placed in the United States Postal Service. The
rent payable by Tenant hereunder shall be paid to Landlord at the same place where
a notice to Landlord is herein required to be directed.
ARTICLE 26.
SUCCESSORS AND ASSIGNS:
The terms, conditions and covenants of this Lease shall be binding upon and
shall inure to the benefit of each of the parties hereto, their heirs, personal
representatives, successors or assigns and shall run with the land; and where more
than one party shall be Landlord under this Lese, the word "Landlord", whenever
used in this Lease, shall be deemed to include all landlords, jointly and severally.
ARTICLE 27.
RECORDING:
This Lease shall not be recorded. However, if either of the parties hereto
desires to record a statutory memorandum of this Lease, Landlord and Tenant agree
to execute.and deliver to the other a Memorandum of this Lease containing only
minimum statutory requirements, which Memorandum of Lease may then be recorded
in the appropriate office of the County within which the demised Premises is located.
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10/12/94 12:41 Z 612 831 1693 J SMITH'R KORSH P. 17
1 •
ARTICLE 28.
AMENDMENTS:
No waivers, alternations or modifications of this Lease or any agreements in
connection therewith shall be valid, unless in writing duly executed by both
Landlord and Tenant herein.
ARTICLE 29.
INVALIDITY OF PROVISIONS:
If any term, covenant, condition or provision of this Lease or the application
thereof to any person or circumstance shall, at any time, or to any extent, be invalid
or unenforceable, the remainder of this Lease or the application of such term or
provision to persons or circumstances other than those as to which it is held invalid
or unenforceable, shall not be affected thereby, and each term, covenant, condition
and provision of this Lease shall be valid and enforceable to the fullest extent
permitted by law.
ARTICLE 30.
CAPTIONS:
The captions appearing in this Lease are inserted only as a matter of
convenience and in no way define, limit, construe or describe the scope or intent of
such Articles of this Lease or in any way affect this Lease.
ARTICLE 31.
ENTIRE AGREEMENT:
This Lease supersedes any and all other agreements, either oral or in writing,
between the parties hereto with respect to the demised Premises and contains all of
the covenants,agreements,and other obligations between the said parties in respect
to said Premises.
ARTICLE 32.
COUNTERPARTS:
1VIII
This Agreement may be executed in several counterparts, each of which shall
be deemed to be an original, but all of which shall constitute one and the same
instrument.
ARTICLE 33.
GOVERNING LAW:
This Agreement shall be governed, enforced and construed under the laws of
the State of Minnesota.
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19/12/94 12142 a 612 831 1693 J SMITH'R KORSH P. 18
Ai e1144
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as
of the day and year first above written.
• LANDLORD: TENANT:
MURPHY'S LANDING PAPER WAREHOUSE, INC.
By By
Its Executive Director Its President
1W.M106.PNI
-12-
1
f
9/30/94:IV
RECOGNITION AND NON-DISTURBANCE AGREEMENT
This Agreement, made and entered into as of the day of October, 1994, by and
between the City of Shakopee (hereinafter referred to as the "lessor under the Primary Lease"
or the "Primary Lessor"), Minnesota Valley Restoration Project, Inc., d/b/a Historic Murphy's
Landing (hereinafter referred to as the "lessee under the Primary Lease" or the "Landlord") and
Paper Warehouse Inc., a Minnesota corporation (hereinafter referred to as the "Tenant under
the Sublease" or the "Tenant").
WHEREAS, the Primary Lessor has entered into that certain lease with the lessee under
the Primary Lease dated March 18, 1994, and all amendments, modifications and supplements
thereto (hereinafter referred to as the "Primary Lease") for the Premises described in the
attached Exhibit A (hereinafter referred to as the "demised premises under the Primary Lease");
and
WHEREAS, Landlord has subleased to Tenant a portion of the demised premises under
the Primary Lease (hereinafter referred to as the "Demised Premises") pursuant to the terms of
that certain Sublease Agreement dated October , 1994 (hereinafter referred to as the
"Sublease"); and
WHEREAS, the Tenant under the Sublease will make a substantial investment in the
improvement of the Demised Premises; and
WHEREAS, the parties have agreed to allow for the Tenant under the Sublease to remain
on the Demised Premises for a period of time beyond the term of the Primary Lease in the event
of its termination or non-renewal prior to November 15, 2000.
NOW, THEREFORE, in consideration of mutual rights, responsibilities and covenants
herein setforth and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto agree as follows, to wit:
1. The Primary Lessee hereby consents to and recognizes the validity of the
Sublease Agreement and agrees not to disturb the tenancy of the Tenant
thereunder as long as the Tenant pays its rent and otherwise is not in default of
the Sublease.
2. Notwithstanding paragraph 7 of the Primary Lease, in the event of default by the
lessee under the Primary Lease, or in the event the Primary Lease is terminated
or not extended for any reason, the Primary Lessor hereby agrees that it shall
continue to recognize the Sublease as a direct lease between the Primary Lessor
and the Tenant and that the Tenant's use, possession and enjoyment of the
Demised Premises shall not be interfered with for a period of twenty-five (25)
years from the date hereof, so long as no default exists under the Sublease.
3. Further, the Primary Lessor agrees that for a period of two (2) years following
the termination of the Sublease that the Demised Premises will not be used for the
purpose of a Halloween themed event as conducted by the Tenant on the Demised
Premises.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and
year first-above written.
THE CITY OF SHAKOPEE MINNESOTA VALLEY
RESTORATION PROJECT, INC.
By: By:
Gary Laurent, Mayor Shirley Olson, Executive Director
By: By:
Dennis Kraft, City Admin.
By: By:
Judith S. Cox, City Clerk
PAPER WAREHOUSE INC.,
a Minnesota corporation
By:
Its: President
-2- RECGMUR4.PWI
OFFICIAL PROCEEDINGS OF THE CITY COUNCIL
SHAKOPEE, MINNESOTA
COMMITTEE OF THE WHOLE AUGUST 30, 1994
Acting Beard called the meeting to order at 5: 11 P.M. with
Councilmembers Lynch (at 5: 14 P.M. ) , Dirks, Sweeney, and Mayor
Laurent (at 5:26 P.M. ) present. Also present: Dennis R. Kraft,
City Administrator; Barry Stock, Assistant City Administrator;
Judith S. Cox, City Clerk; Lindberg Ekola, Planning Director: Dave
Nummer, Staff Engineer; Paul Bilotta, Senior Planner; Gregg
Voxland, Finance Director; Frank Ries, Fire Chief; and Tom
Steininger, Chief of Police.
Dirks/Sweeney moved to approve the agenda. Motion carried
unanimously.
Mr. Voxland referenced the hand-out on the table (Schedule A)
identifying the capital equipment purchases for the next five
years. He noted that this list reflects the changes that Council
made to the list previously.
Councilor Lynch entered and took her seat.
Mr. Voxland referenced the hand-out on the table (Schedule B)
regarding the establishment of an internal service fund. He stated
that staff has prepared the resolution establishing the fund
pursuant to the recommendation of the Committee of the Whole and
the auditor.
Mr. Voxland stated that the fund is set up as simply as possible
under the guidelines of: selected equipment would be covered,
operating and maintenance costs would be borne by the using
departments and a flat rate would be charged for the use of the
equipment. He said that the fund would cover mobile powered
equipment that costs around $10,000 and more.
Mr. Kraft noted that Mr. Nummer has provided Council with a
replacement analysis worksheet, as requested, to determine the
replacement of vehicles. He explained that the formula used
calculates when it is time to replace an item considering
maintenance costs and that it is from Oklahoma State.
Mayor Laurent entered and took his seat. Acting Mayor Beard passed
the gavel to Mayor Laurent.
Sweeney/Lynch moved to recommend to City Council the adoption of
Resolution No. 4077, A Resolution Establishing An Internal Service
Fund For Equipment. Motion carried unanimously.
Official Proceedings of the August 30, 1994
Committee of the Whole Page -2-
Mr. Voxiand explained that Schedule "C" on the table shows the
effect of general fund tax levy for 94/95 including a 4% estimated
growth in the value of property in the City plus and additional
1.7% from closing TIF District #4. Mr. Voxiand explained the
effect of the Debt Service Levies and Fiscal Disparities on the
proposed budget and recommended cancelling two debt service
levies. This would result in a 5.3% ($128,016) increase in the
1995 property tax revenue budget over 1994. He stated that based
on this, the change in taxes on an average house should not be very
much. Cncl.Sweeney concurred.
Cncl.Sweeney reiterated that the tax dollars that will result
because of the additional growth in the community plus cancelling
the TIF District #4 should come close to offsetting the tax
increase for the 1995 budget.
Mr. Voxiand explained that hand-out (Schedule D - 1995 General Fund
' Budget Summary) was an update reflecting the changes talked about
last time.
Mr. Voxland explained that hand-out (Schedule E) was a summarized
version of the 1995 proposed budget. He explained that we are
looking at a General Fund balance proposed deficit of $260,000.
Discussion ensued on how to use the fund balance surplus (over 15%)
to reduce the proposed budget. Consensus was to utilize it over
five years using 20% of the $708,000 surplus, or $140, 000 to buy
down the 1995 budget. This results in a proposed deficit for 1995
in the amount of $21,000. ($260, 000 deficit, minus $100,000
estimated 1994 surplus, minus $140, 000 from the $700,000 fund
balance surplus. )
Discussion ensued on raising liquor license fees to help pay for
the second requested police officer for 1995. Consensus was to
raise liquor license fees 10% in 1995.
Discussion ensued on weather or not to include certain items in the
1995 budget.
Consensus to budget $17,000 in 1995 to repair/replace civil defense
sirens.
Consensus to budget $26,000 for a second police officer for 2/3rds
of the year.
Consensus to budget for the planning technician for 2/3rds of the
year.
Consensus to budget for the Administration optical scanner.
Official Proceedings of the August 30, 1994
Committee of the Whole Page -3-
Consensus to defer the mobile data terminals for the Fire
Department.
Discussion ensued on the two methods of determining how much state
aid maintenance the City receives because the method selected
impacts the General Fund budget and the funds available for future
construction projects.
Beard/Sweeney moved to direct staff to notify the State that the
City of Shakopee selects to receive the maintenance allotment
calculated on the basis of 25% of the total state highway aid
allotment. Motion carried unanimously.
Consensus to budget $10,000 for a seasonal, temporary code
enforcement officer.
Discussion ensued on compensation for planning commission members.
• Mayor Laurent suggested reimbursing the planning commission members
for their time, tied to attendance.
Sweeney/Lynch moved to direct staff to come up with a compensation
plan for planning commissioners which embodies the Mayor's
suggestions. Motion carried unanimously.
Consensus to budget $8,400 for Planning Commission members
reimbursement.
The Committee of the Whole took a short recess at 6:55 P.M.
When the Mayor re-convened the meeting at 7:00 P.M. the following
were present: Shakopee: Councilors Lynch, Dirks, Beard and
Sweeney, City Administrator Kraft, Assistant City Administrator
Stock, City Clerk Cox, Finance Director Voxland and Fire Chief
Ries; Jackson Township: Supervisors Jim Ramaker and Mark Luce,
and Town Clerk Rose Menke; Louisville Township: Supervisors Bill
Tech, Bill Dellwo, and Marion Schmidt, and Town Clerk Jim Theis.
Mr. Ries explained where the Fire Department is going in terms of
personnel and equipment.
Cncl.Sweeney explained the change in the structure of the capital
equipment fund. The effect of this will result in the Fire
Department budget remaining reasonably level from year to year
versus fluctuations when vehicles are purchased. He stated that
the contract with the townships would need to be updated to reflect
this change. Questions raised by Supervisors were answered.
Mr. Stock reviewed previous discussions (since 1990) between the
City and the Townships relating to fees for recreation activities.
He also stated that we now have accurate figures of the number of
participants from each of the townships.
Official Proceedings of the August 30, 1994
Committee of the Whole Page -4-
Mr. Stock provided a Recreation Fee Analysis encompassing 1992
through 1996. The information identified the cost allocation based
on the 1991 participation formula for the Townships for 1991, 1992,
and 1993, to be paid in 1992, 1993, and 1994 respectively. Also
identified was the actual amount paid by the Townships for the same
periods. (It should be noted that the amounts paid were
substantially less than the participation formula calculations. )
The Recreation Fee Analysis provided by Mr. Stock also identified
the amounts proposed to be paid by the Townships, based on the 1991
participation formula, in 1995, 1996 and 1997.
Because the 1995 budgets have already been set by the Townships,
Mr. Stock stated that he proposes to push back implementing the
participation formula until 1996. He also stated that he would
like everyone to agree to a formula for a three year period so that
it is not necessary to discuss the fees every year. He stated that
rather than recalculating the number of participants each, a
baseline figure could simply be increased by a standard
inflationary amount each year for a three year period. (Township
budget years 1995, 1996 and 1997) In January of 1997, the actual
number of participants could be recalculated to determine if the
baseline figure should be adjusted.
Mr. Stock stated that the purpose of this discussion is to decide
on how to go forward on calculating the townships' participation in
supplementing the fees for township residents to participate in
Shakopee recreation activities. Discussion followed.
Cncl.Sweeney acknowledged that the Township supervisors need to
discuss among themselves whether or not they desire to supplement
the recreation fees for their participants and to what extent.
They then need to advise the City of Shakopee so that we know where
to go from there.
Mr. Stock was directed to provide the Townships with all pertinent
information to aid them in their discussions on their participation
in the fees for their residents - budget, expenses, participants,
etc. (Based on this information, the Townships will discuss
supplementing recreation fees with their residents next
February/March when they adopt their 1996 Budget. )
Mr. Ramaker and Ms. Menke left the meeting.
Mr. Kraft explained that the O'Dowd Lakes Chain Association has
requested the City to take over the operation of the aerators on
O'Dowd Lake. Should the City Council budget for owning and
operating the aerators on Lake O'Dowd? Ms. Cox explained that the
City's insurance carrier has reviewed the site and has made
recommendations for the City to implement if they take over the
operation.
Official Proceedings of the August 30, 1994
Committee of the Whole Page -5-
Mr. Dellwo stated that the City should get a different insurance
company. Mr. Sulik, President, O'Dowd Lakes Chain Association,
stated that the DNR is already doing some of the things identified
by the insurance carrier. Mr. Dellwo stated that the association
is making the inspections. Discussion followed.
Cncl.Dirks left the meeting.
Discussion ensued on the possibility of relocating the pole or the
box providing the electricity to a location within Louisville
Township, since Louisville Township is already insuring the aerator
located within Louisville Township. Mr. Dellwo stated that there
is already a pole in Louisville Township and that making the move
would solve the problem. He asked if the City would be gracious
enough to move the unit over to property within Louisville
Township. As Council Liaison to Shakopee Public Utilities
Commission, Cncl.Sweeney offered to contact SPUC to make the
• necessary move.
Mayor Laurent adjourned the meeting at 8:25 P.M.
u , th2eK
pith S. Cox
City Clerk
Recording Secretary
•
OFFICIAL PROCEEDINGS OF THE CITY COUNCIL
SHAKOPEE, MINNESOTA
COMMITTEE OF THE WHOLE SEPTEMBER 28, 1994
Mayor Laurent called the meeting to order at 5:53 p.m. with
Councilmembers Lynch, Beard and Sweeney present. Cncl.Dirks
resignation became effective today. Also present: Dennis R. Kraft,
City Administrator; Barry Stock, Assistant City Administrator;
Judith S. Cox, City Clerk; Mark Erickson, Assistant City Attorney;
Dave Nummer, Staff Engineer; Lindberg Ekola, Planning Director;
Paul Bilotta, Senior Planner; Gregg Voxland, Finance Director; Tom
Steininger, Chief of Police; and Frank Ries, Fire Chief.
Sweeney/Beard moved to approve the agenda. Motion carried
unanimously.
Beard/Sweeney moved to approve the Minutes of August 23rd and 25th,
1994. Motion carried unanimously.
Mr. Kraft explained that the City has received a letter from Mr.
Richard Wicka of the Frauenshuh Companies asking for the City's
assistance on a number of issues relating to the new campus for the
St. Francis Regional Medical Center (SFRMC) . He explained that
most of them will be considered by the Planning Commission. He
explained that a temporary sanitary sewer connection is needed for
the medical campus and that it may be needed for nine months. They
are asking for financial help from the City. Mr. Kraft identified
other less costly alternatives that could be looked into.
Mr. Wicka addressed the Council. He explained that they have been
working with the Metropolitan Council in hopes that the Chaska
Interceptor would be completed on schedule so that they could •
connect to it on their November 1, 1995 use date. He explained
that it appears that the Chaska Interceptor will not be complete
and that they will need some temporary solution and they are
looking for assistance from the City. He stated that he is willing
to work with City staff on other alternatives. Discussion
followed.
Staff was directed to contact the Metropolitan Council regarding
the completion of the Chaska Interceptor Sewer in a time frame to
allow connection to the new campus of St. Francis Regional Medical
Center.
Mr. Bilotta reviewed previous information provided to the City
Council regarding the 5-Year Capital Improvement Program (CIP) .
Discussion followed regarding the storm sewer fund and the sanitary
sewer fund and how they are impacted by the CIP.
Sweeney/Beard moved to direct staff to prepare the appropriate
resolutions to increase the user fees for storm sewer and sanitary
sewer, as indicated. Motion carried unanimously.
Official Proceedings of the September 28, 1994
Committee of the Whole Page -2-
Sweeney/Beard moved to direct staff to prepare the necessary
document to institute a trunk sanitary sewer charge based on
availability of the Chaska Interceptor, with a public hearing.
Motion carried unanimously.
Mr. Bilotta stated that staff is looking into possible funds that
may be available, with low interest rates, to address the River
Interceptor pollution.
Discussion ensued on the debt service through 1999 because of
capital improvement projects. There was a consensus of
Councilmembers to spread the proposed street reconstruction
projects out over seven years as opposed to five years.
Sweeney/Lynch moved to direct staff to make changes in the "A"
Capital Improvement Projects and the appropriate adjustments in the
"B" Projects as affected by the changes in the "A" Projects.
Motion carried unanimously.
Sweeney/Lynch moved to recommend to the City Council adoption of
the Capital Improvement Program, as ultimately modified. Motion
carried unanimously.
City Council agreed to meet as a Committee of the Whole on
Wednesday, October 12th at 5:00 p.m. and on October 25th at 5:30
p.m. Mr. Kraft will ask if the Shakopee Public Utility Commission
could meet on October 12th.
Mayor Laurent adjourned the meeting at 7:15 p.m.
tka<, j • 626
pith S. Cox
ity Clerk
Recording Secretary
OCT-07-1994 10:53 FROM SHAKOPEE PUBLIC UTILITIES TO 4456718 P.01
a
TO: Dennis Kraft FAX* 445 - 6718
FROM: Lou Van Hout FAX* 445 - 7767
RE: Agenda Items rom SPUC
for the 10/12/94 Joint CC/SPUC Meeting
DATE: 10/7/94
As we just discussed a few minutes ago, the following are the
items that Jim Cook intends to discuss under the general heading
of his presentation as Utilities Commission President.
Status of property acquisitions:
- Substation site.
- Water Tank sites.
Cost sharing - Downtown Electric Undergrounding.
Service Area Acquired in 1991 - changes in 1995:
- Rate differential to end.
- Formula for SPUC Contribution to City to include this area.
Overview on SPUC bonding, capital improvements, rates
Reconstruction of Watermain - necessary cost constraints
Review the 1993 SPUC Contribution to City General Fund.
Water pumping at Shiely quarry, either by Shiely or my other
cities.
- Concerns of SPUC.
- Coordination of SPUC/City response.
c.c. Jim Cook
TOTAL P.01
Memo To: Dennis Kraft, City Administrator
From: Paul Bilotta, Senior Planner
Meeting Date: October 12, 1994
Re: 1994 Comprehensive Plan Update Status
Introduction:
In mid-to late- April, 1994, City staff began the 1994 Comprehensive Plan Update process. At
the time, staff indicated an aggressive timeframe goal of 6 months to the preparation of a draft
plan maps(approx. 10/15/94). Since that time, staff has broken up this task into various elements
including the sanitary sewer and stormwater management sections. Drafts of the first elements
were brought before the Planning Commission in September and the draft of the last element is
currently projected for presentation to the Planning Commission on November 3.
Background:
In May, 1994, the City Council received a status report on the Comprehensive Plan Update
process (Exhibit A). This memo outlined much of the process that led up to the decision to
undertake the 1994 Comprehensive Plan Update.
Discussion:
Since the time of the May status memo, many actions have taken place on both the regional and
local level that have an impact on the Comprehensive Plan process including the following:
Regional Level
► The large and somewhat uncertain changes in the Metropolitan Council and its new
"Blueprint" policy document. This document was adopted by the Metropolitan Council in
September.
► The Metropolitan Council's decision to look at modifying MUSA allocation procedures
and prepare a handbook for local governments. The handbook has not been completed
and staff has not received any indications about how procedures will change. City staff
has provided specific recommendations to the Metropolitan Council for incorporation into
the handbook.
► The Orfield legislative efforts relating to affordable housing. This is a complex and
ongoing effort that affects how demographic and housing data will be included in the
Comprehensive Plan. Staff is continuing to work with the Metropolitan Council and
various state agencies to ensure an accurate representation of Shakopee is presented.
Local Level
► Completion of the Chaska Interceptor Agreement.
► Staffs negotiations with the Metropolitan Council to allow the Sanitary Sewer Element to
be approved prior to the approval of the 1994 Comprehensive Plan Update.
► Jackson Township Comprehensive Plan Amendment.
► New developers have been identified that are seeking MUSA allocations.
► The decision to remap the City zoning map in phases to quickly resolve problems in areas
unlikely to change in their future land use designations (most industrial areas, "Old
Shakopee Residential" etc.)
These actions and their effect on the Comprehensive Plan are explained in more detail in Exhibit
B. In general, they have required staff to revise the level and types of supporting detail to include
in the analysis section as well as caused frequent revisions of Metropolitan Council approval
strategy. A tentative schedule of major action steps remaining is illustrated in Exhibit C.
As the City Council is likely aware, the City ran into a shortage of available residential lots this
past building season. The soon-to-be-completed Jackson Township annexation, as well as the 89
acre Prairie Bend subdivision, should eliminate that problem in 1995. City staff has made a very
conservative estimate that the development in these two areas will be sufficient to meet the City's
growth demands at least until 1997. When coupled with the development likely to occur the
remainder of this year, as well as vacant lots in some of the Rural Residential subdivisions, it is
unlikely that any similar supply problems will result until the final two years of the decade. Staff
is working on strategies to receive sufficient MUSA allocation to last until the end of the century
with a 5 year oversupply(see Exhibit B).
Alternatives:
1. Indicate general approval for the proposed Comprehensive Plan Update process as
presented with this memo.
2. Provide direction to staff on how the City Council would like to see the process revised.
Recommendation:
Staff recommends the City Council review the attached materials and provide feedback to staff so
that the Comprehensive Plan Update may proceed.
Action Requested:
This is an informational and discussion item. No formal action is required.
2
•EA-111.3 fl A
MEMO TO: Shakopee City Council
FROM: Lindberg S. Ekola, Planning Director
RE: 1990-2010 Comprehensive Plan Update Process
DATE: May 12 , 1994
NON-AGENDA INFORMATION ITEM:
In the next one to two months, the City Council will begin
receiving draft goals, policies and strategies relating to the
Comprehensive Plan. The major issue remaining in the City's
comprehensive planning process is where should future urban growth
go and what should be the timing of that growth in the various
areas of the City.
In the negotiation process for the Chaska Interceptor Agreement,
:the City Council was successful in maintaining flexibility for
future growth in the areas south of the Shakopee Bypass. Local
land use control can continue to be achieved through the City's
proper planning of the new growth areas.
Much of the draft 1990-2010 Comprehensive Plan, submitted to the
Metropolitan Council for review in 1991, reflects current thinking.
Staff would note that there are some areas that need revision based
on recent state and/or federal mandates such as the 40 percent
nonpoint pollution reduction goal.
Staff has distributed draft goals and policies to the Community
Development Commission and the Planning Commission for their
review. Copy of these drafts will be forwarded to the City Council
via the non-agenda information format for preliminary review and •
informal comment. Following specific recommendations by the
Planning Commission on the Comprehensive Plan a formal review by
the City Council will be required. Staff feels that the informal
review by the City Council will help expedite the comprehensive
plan review process. Attached is the work program for the updating
of the Comprehensive Plan. If members of the City Council have any
question with regards to this work program please contact Dennis or
myself.
Also attached with the memo is a brief chronology of the various
long range planning efforts which have been undertaken by the City
over the past 4-5 years. Staff believes that the results from
these various planning efforts will improve the final updated
Comprehensive Plan. These long range planning efforts have
answered many questions raised in the draft 1990-2010 Comprehensive
Plan and should be incorporated into the updated Comprehensive
Plan.
LSE/jms
ATTACHMENT 2
CHRONOLOGY
Long Range Planning Efforts
Since 1988
In 1988, the City hired BRW to serve as primary consultant for the
preparation of the 1990 - 2010 Comprehensive Plan. The draft plan
was prepared over the course of two years. In April of 1990, the
Planning Commission opened the public hearing on the draft plan.
Based on numerous comments from the public hearing and directions
from the Planning Commission, staff made several revisions to the
draft document.
After the revisions were made, the Planning Commission reviewed the
draft plan over the course of several months. In addition, the
Planning Commission and City Council held three joint workshops to
discuss the draft plan. After the workshops, the Planning
•'Commission made a final recommendation to the City Council on the
Comprehensive Plan. The City Council approved the draft plan in
July of 1991. The plan was forwarded to the Metropolitan Council
following the City Council's approval as required by state law for
their review.
The Metropolitan Council's Comprehensive Plan review process
includes a ten day initial screening review followed by the formal
review process. (The formal review process cannot exceed 90 days
for major Comprehensive Plan Amendments. ) During the ten day
initial review, :Metropolitan Council staff noted two regional
issues which necessitated the City's withdrawal of the
Comprehensive Plan or the plan would have been subject to denial.
The two regional issues involved the paving of the CSAH 18 ramps
and the City's Zoning Ordinance allowing for rural densities which
would exceed the -1 per 10 density policy.
City staff initiated discussions with the Metropolitan Council
staff in seeking ways to resolve the paving of the ramp issue. The
efforts to resolve the ramp paving issue continued through the
course of the next several years up to the negotiating of the
Chaska Interceptor Agreement. Planning staff suggested the
inclusion of the Metropolitan Council's approval of the paving of
the CSAH 18 ramps into the Chaska Interceptor Agreement. This was
done to resolve the CSAH 18 ramp issue once and for all.
Further delay in completing the Comprehensive Plan occurred in 1991
when Rahr Malting and St. Francis Medical Center both approached
the City with their respective concerns. Rahr Malting requested
that policies in the Sanitary Sewer section of the 1980
Comprehensive Plan be revised to allow for private wastewater
treatment facilities. This request was approved by the City but
was denied by the regional and state agencies including the •
Metropolitan Waste Control Commission and the Minnesota Pollution
Control Agency.
St. Francis proposed relocating their facility to the area near the
southwest corner of CR 17 and the Shakopee Bypass. Their request
involved a 70 acre MUSA expansion for the proposed site. This
request was approved by the Metropolitan Council and has since been
adopted by the City Council.
Several sewer and stormwater issues were raised between 1988 and
1991 in the development of the BRW draft Comprehensive Plan.
Greater detail for both areas was necessary for the City to comply
with regional and state mandates, such as the 40 percent point
pollution reduction in the Minnesota River. As a result, the City
Council authorized the hiring of SEH and OSM to prepare the
comprehensive Sanitary Sewer Plan and the comprehensive Stormwater
Management Plan respectively.
In the process of drafting the scope of work sections for both of
these planning efforts, Engineering and Planning staff work closely
to identify documentation which needed to be incorporated and
coordinated into the 1990 -2010 Comprehensive Plan. Both
: consulting firms, SEH and OSM, will provide summaries for their
respective areas to be incorporated into the 1990 - 2010
Comprehensive Plan.
•
In 1993 , the Chaska Interceptor issues came to the forefront. The
associated issues that had to be addressed once again delayed the
completion of the Comprehensive Plan. Staff entered into the
process of negotiating with the Metropolitan Council and the
Metropolitan Waste Control Commissionas directed by the City
Council. In order to prepare the agreement, several fundamental
planning issues, essential to the 1990 - 2010 Comprehensive Plan,
such as population projects, land supply, and land demand
information had to be revised. Based on this information, the
Chaska Interceptor Agreement was completed. Much of the
information used in the Chaska Interceptor negotiation process was '
based on the 1990 Census. The 1990 census information became
available in 1992 .
Since the City is close to working through the annexation agreement
with Jackson Township, the need to process an amendment to the 1980
Comprehensive Plan and a concurrent MUSA expansion with the
Metropolitan Council will be necessary. Staff believes that this
process will be relatively short in time frame and require limited
staff resources. Staff has prepared the necessary memos for the
Planning Commission review which will be holding its public hearing
at the May meeting. City staff has also contacted the Metropolitan
Council staff on this particular Comprehensive Plan Amendment
request. The Metropolitan Council staff feels that it is
acceptable to submit an amendment to the 1980 Comprehensive Plan
(the currently adopted plan) . Since the concept of expanding the
City limits to the Shakopee Bypass has been discussed with the
Chaska Interceptor Agreement, the Metropolitan Council staff does
not see any problems with this amendment at this point in time.
With all of the above listed planning issues in place, staff
believes that the updated 1990-2010 Comprehensive Plan will be
brought to the City Council for final approval within six months.
EXHIBIT B
Sanitary Sewer Plan Issues
1. The former MWCC (now Metropolitan Council) needs the Sanitary Sewer Plan to be
approved as soon as possible in order to have permits released for work on lift station L-
16 and force main 7024.
Status: In June, 1994, staff contacted the Metropolitan Council about submitting the
sanitary sewer section of the Comprehensive Plan in advance of the rest of the
Comprehensive Plan Update in order to satisfy the MWCC's needs. The Metropolitan
Council required that additional data be submitted that would normally have been
included in the Comprehensive Plan Update. This involved altering the order of
scheduled Comprehensive Plan Update tasks and has been given preliminary approval
by Metropolitan Council staff. This item has been before the City Council once and is
anticipated to be brought back to a C 0.W meeting on October 25, 1994.
2. Identify the 50 year growth area for use in calculating the sanitary sewer trunk charges.
In order to satisfy the Metropolitan Council requirements mentioned in item#1, staff
used the BRW plan to project a 50 year growth pattern. The approval of this sewer
plan with the BRW plan growth patterns does not impact the 1994 Comprehensive
Plan Update process in any way. The BRW plan was used only because it is the latest
document that the City has prepared and would meet the Metropolitan Council's
needs The Metropolitan Council is aware that this will likely be changing in the
coming months
For:the 1994 Comprehensive Plan Update, staff has looked at many variations on an
"ultimate" (50 year) sanitary sewer system to evaluate the impacts of a variety of
potential land use configurations This is part of the normal, technical analysis that is
prepared to evaluate land use and phasing alternatives (and therefore MUSA
expansions). This information will be incorporated into the 1994 Comprehensive Plan
Update.
Chaska Interceptor Issues
1. Submission of a Comprehensive Plan
a. Shows 360 acre land trade
Status: The first stage of the land trade has been made as part of the Jackson
Township Annexation Comprehensive Plan Amendment Remaining areas are
planned for identification in the Comprehensive Plan Update.
b. Shows no more than 2311 acres of vacant developable land
Status: City staff has completed the negotiations with the Metropolitan Council
and has come to agreement on the locations of the vacant developable land in
1990. (This negotiation effort is currently being used as a model for other
communities by the Metropolitan Council) There are some procedural issues
involving the Jackson Township Comp. Plan Amendment and the land trade
that will need to be resolved in the coming months(either within or outside of
the Comp. Plan update process.)
c. Conforms with rural density standards
Status: The City Council has adopted an interim ordinance that conforms with
the rural density standards. The City Council has also adopted a new zoning
ordinance that conforms with the rural density standards. The Planning
Commission has recommended Goals, Objectives and Policies that conform
with the rural density standards for the Comprehensive Plan Update. City staff
has received Metropolitan Council approval of the City's efforts in this area as
part of the Jackson Township and Sanitary Sewer Plan Comprehensive Plan
Amendments.
d. Conforms with Interim Strategy to Reduce Non-point Source Loading to the
Minnesota River
Status: The City Council adopted policy Resolution No. 3567 on April 7, 1992
as a means to implement the Metropolitan Council's stormwater policy. This
has been approved by the Metropolitan Council as part of the Jackson
Township Comprehensive Plan Amendment The City is also currently
reviewing the Stormwater Management Plan element of the Comprehensive
Plan that will further satisfy the stormwater requirements of other Federal,
State, Regional and local regulatory bodies. This Comprehensive Plan
Amendment should be on a C 0.W. agenda in October or November, 1994.
e. Adopt on-site sewage disposal ordinance provisions consistent with applicable
2
requirements set forth in the Council's Water Resources Management, Part 1,
Wastewater Treatment and Handling Policy Plan
Status: The first step to satisfying this requirement is being undertaken as part
of the Sanitary Sewer Element Comprehensive Plan Amendment(currently
under review by the City Council). Fully satisfying these requirements will be a
significant undertaking involving both City and County staff. The
Metropolitan Council has approved the City's approach as outlined in the
proposed Sanitary Sewer Plan. This approach has further been given
Metropolitan Council support in the Jackson Township Comprehensive Plan
Amendment process.
2. Submission of a Comprehensive Sewer Plan that meets Tier I and Tier II requirements,
enabling the release of permits for MWCC projects.
Status: Metropolitan Council staff has been informed of the City's progress as this
plan was prepared and has indicated support for the City's process. This plan is
currently in review by the City Council and is holding up the issuance of permits to the
Metropolitan Council(formerly MWCC).
3. By January 1, 1996, the City will repeal all official controls or fiscal devices in conflict
with the Met. Council's rural density provisions(Met. Council's Comp. Plan/Zoning
Mapping submittal deadline).
Status: With the completion of the Comprehensive Plan Update and the zoning
mapping, this requirement will be met Staff anticipates approval of both of these
controls well in advance of the deadline date.
4. Within one year of the date of the Chaska Interceptor Agreement, the City will transmit to
the Met. Council a description and analysis of the difference between the City's
comprehensive plan and its zoning ordinance provisions with respect to Rural Density
development standards.
Status: This task has not been completed but is not related to the Comprehensive Plan
update process.
5. The City agrees to use its best efforts to limit access points on County Road 18 in
accordance with the Minimum Access Spacing Guidelines.
Status: The City is working closely with Scott County to ensure these requirements are
met.
6. MUSA expansions will be granted if the City gets the planned household and job growth
3
and needs additional land within the MUSA, provided metropolitan systems are not
adversely affected.
Status: This is an ongoing monitoring and Comprehensive Plan Amendment process.
As part of the 1994 Comprehensive Plan Update process, staff is creating the complex
monitoring and analysis systems necessary to quickly respond to sudden changes in
demand Staff is also developing the Comprehensive Plan with more technical
analysis to ensure that the City will have the flexibility to respond to a wide range of
demand possibilities. Currently, the City is growing at a rate slightly below that
projected, but is expected to undergo a significant growth shift after the opening of the
CR 18 bridge
7. Provision that the City will not exceed the Met. Council's year 2000 sewer flow projection
of 5.94 cubic feet per second average annual flow.
Status: This is an ongoing monitoring effort by City and Metropolitan Council staff.
This is largely demand driven and out of the City's control. Ifproblems are identified
as part of this continuous monitoring effort, City staff will initiate discussion at the
City Council and Metropolitan Council levels to resolve the difficulty with minimal
impact on the marketplace.
4
MUSA Issues
1. Complete the 360 acres MUSA land swap.
Status: The first phase of the land swap is nearing completion with the Jackson
Township Annexation. Based on the latest Metropolitan Council growth projections,
this annexation should provide sufficient residential growth area until 1997-98.
Approximately 160 acres of MUSA has still not been allocated and would provide
growth area until 1999-2000.
2. Obtain sufficient MUSA to satisfy the City's growth projections until the year 2000 plus a
five year oversupply.
Status: This issue has theP
to develop o into a difficult issue for the City and is
P
closely tied to the changes in the new Regional Blueprint as well as the recent
legislative changes in the Metropolitan Council Staff has been very actively involved
in the Blueprint preparation and legislative efforts, both individually and through the
City's various associations and lobbying avenues. One of the issues involves the
uncertainty about whether the Metropolitan Council will allow further MUSA
expansions for the City in this decade or only if involving a MUSA trade for excess
commercial or industrial land
City staff has been preparing a variety of strategies to anticipate concerns that might
be raised by the Metropolitan Council including the following:
Blueprint strategy—Due to concerns raised by staff in the City of Shakopee and other
cities, the Metropolitan Council agreed to look at its MUSA expansion procedures and
prepare a MUSA Handbook Staff is continuing to monitor this progress and provide
input where possible. Staffs primary emphases up to now have been the methods for
calculating vacant land and the separation of residential, commercial and industrial
categories when evaluating MUSA expansion requests.
The latter issue is particularly important to Shakopee due to the vast amounts of
commercial and industrial land around the Racetrack and in Valley Green Business
Park It is staffs position that development in both these areas is driven more by
regional forces and is not directly tied to the City's population projections. Staff is also
asserting that there is a substantial benefit to concentrating industrial uses rather than
distributing them gradually throughout the City as the population grows (which could
be the growth pattern the current MUSA expansion process encourages). Further,
staff is asserting that restricting neighborhood and City-wide commercial development
areas is an unnecessary growth control effort since the development of these areas is
directly related to the size of the population within the service area Finally, staff
believes it is desirable in the development of the City and Regional economies to have a
5
wide range of sewered industrial properties so that prospective job-creating industries
can locate sites that meet their business'particular needs
Growth monitoring approach—Staff has been creating complex growth tracking
procedures so that potential MUSA crises can be identified and prevented These
databases and tracking methods are also critical for creating a persuasive argument
with the Metropolitan Council
Land trade approach Although, not an optimal approach, staff will soon be
evaluating commercial and industrial areas within the MUSA to establish which
properties can be removed from the MUSA with the least damage to the marketplace
and City competitive position. It is recognized that this will be a very unpopular
approach which is why significant amounts of staff time are being expended on the
first two approaches, however, it is within the Metropolitan Council's powers and
policies to require this approach.
3. Identify locations for future annexations, MUSA expansions and residential phasing.
Status: This issue is currently at the technical analysis stage involving the adequacy of
future infrastructure, environmental impacts, market effects and ability to offer a full-
range of housing opportunities for the City's resident&
4. Coordinate projected growth patterns with Scott County and surrounding townships.
Status: Scott County is currently in the process of preparing an update to their
Comprehensive Plan. The rural density issue is a major hurdle for the County in their
plan approval process and has a direct impact on the City of Shakopee. If future
residential growth can be redirected to areas within the urban service area, the growth
can be more cost-effectively served, thereby reducing costs to the whole County and
preserving rural lands. In addition, the potential negative environmental impacts that
can result from improper operation of septic systems and wellheads are minimized as
more growth occurs in areas with the full range of urban services. A presentation on
the Scott County Comprehensive Planning effort will be made to the Planning
Commission at their October 20, 1994 meeting.
6
Sanitary Sewer Trunk Charges Issues
1. The City Council has identified a desire to create a sanitary sewer trunk charge to pay for
trunk and interceptor sewer charges in newly developing areas.
Status: The Sanitary Sewer Plan serves as the basis for the establishment of Sanitary
Sewer Trunk Charge& In September, the City Council directed staff to take the steps
necessary to establish a trunk charge process. Staff anticipates this issue being before
the City Council in the next few weeks.
Jackson Township Annexation Issues
Approximately 200 acres of land in Jackson Township needs to be annexed to the City.
Status: The major comprehensive plan amendment for this area has been approved by
the Metropolitan Council MUSA expansion and annexation are anticipated to occur
shortly after the November election& Staff is currently working closely with a number
of property owners and developers in this area to quickly subdivide the area and create
new residential lot&
7
Zoning Ordinance Mapping Issues
1. The new Zoning Ordinance needs to be mapped in order to go into effect.
Status: If the City Council approves Comprehensive Plan Land Use policy 2.2.d
"Property outside of the MUSA line will not be zoned for commercial, industrial, or
urban residential use&" at the October 25, 1994 COW meeting, there will be sufficient
policy direction to remap the City. Staff will be recommending that the policy be
clarified to state that property currently developed or platted will be zoned to allow its
existing or continued development It is anticipated that this remapping will be
approved on November 15, 1994. If the City Council does not approve that policy, then
the remapping will be done in phases as outlined in items 2-4 below.
2. Several industrial uses need to be regulated under the new zoning text in order to operate
or expand as they desire.
Status: Mapping of the vast majority of industrial properties was initiated in August,
1994, to immediately satisfy the concerns of the properties needing the new text
provision& This is Phase I of the Zoning Ordinance remapping and should be
completed in advance of the completion of the Comprehensive Plan. This remapping
covers all known properties experiencing hardship and is in areas where land use
policy direction is unlikely to change (i.e. Rahr Malting, Valley Green Business Park,
etc.) Preliminary approval has occurred; however, no official mapping can occur until
the legal description is completed(in progress).
3. Implementation of the R-1C "Old Shakopee Residential Zone" provisions to reduce the
number of variance requests.
Status: Mapping of the R-1C area is anticipated to be Phase II of the Zoning
Ordinance remapping. This can be initiated at any time, however, there are no known
cases of hardship occurring at the present time so the timing of this remapping is
scheduled to begin after the completion of the industrial "Phase I"remapping effort
The variance requests over the last few months in the "Old Shakopee" area would
have also needed variances under the new zoning ordinance provision&
4. Implementation of the smaller commercial lot sizes in the older business area.
Status: Staff is unaware of any businesses facing particular hardships at the present
time, however this mapping is anticipated to be Phase III of the Zoning Ordinance
remapping. At present, this is scheduled to be addressed after the R 1 C district,
however, if a particular hardship is identified, staff is prepared to alter the mapping
schedule to address any urgent concerns
8
5. Establishment of an R-1A "Low Density Residential" development district.
Status: It is unlikely that this district can be mapped in advance of the comprehensive
plan update since this is a new district and there does not appear to be any areas within
the MUSA line that would be appropriate for this type of development.
9
EXHIBIT C
1994 Comp Plan Approval Processes
April 15, 1994 City staff begins work on 1994 update
May-July, 1994 Planning Commission reviews/recommends Goals, Objectives and
Policies
May-June, 1994 CDC/Park Board review and recommend various sections of Goals,
Objectives and Policies
Aug., 1994 CC individual review of Goals, Objectives and Policies
July-Sept., 1994 Budget COW sessions
Aug. 4, 1994 PC reviews existing Comp. Plan maps and identifies areas and issues of
concern
Sept. 22, 1994 PC Comp. Plan Status Report/strategies to address areas/issues of
concern
Oct. 6, 1994 PC reviews Transportation Element
Oct. 12, 1994 COW Comp. Plan Status Report
Oct. 20, 1994 PC review of Com./Ind. areas; review of Scott Co. Plan
Oct. 25, 1994 COW review of Goals, Objectives and Policies; Transportation Element,
Stormwater Element, and Sanitary Sewer Element
Nov. 3, 1994 PC Review of Residential Phasing/MUSA, new zoning map public
hearing
Nov. 8, 1994 COW review of new zoning map
Nov. 15, 1994 CC approval of new zoning map
Nov. 22, 1994 COW review of Land Use Issues (R, C, I)/MUSA
Dec. 1, 1994 PC opens Comp. Plan public hearing on complete plan
Jan. 1995 CC approval of draft plan
MEMO TO: Shakopee City Council
FROM: Lindberg S. Ekola, Planning Director
RE: Phase I Zoning Mapping
DATE: October 4, 1994
NON AGENDA INFORMATION ITEM:
Staff anticipates that the Phase I zoning mapping for the existing
industrial zoned areas as approved with Ordinance No. 384 will
become effective on Thursday, October 20, 1994. The ordinance is
scheduled to be published in the Shakopee Valley News on that date.
(PLANNING\PHASEI.ZON)
MEMO TO: Honorable Mayor and Council
FROM: Dennis R. Kraft, City Administrator
RE: Absence from Office
DATE: October 12, 1994
I will be on vacation and out of the office October 14th through
October 18th. During that time Assistant City Administrator Barry
Stock will function as Acting Administrator.
If you have any questions please contact either Barry or Toni .