HomeMy WebLinkAbout15.A.1. Special Assessments for 2003 (4th Avenue) Street Reconstructions, 2003-3-Res. No. 6138
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CITY OF SHAKOPEE
Memorandum
TO: Mayor & City Council
Mark McNeill, City Administrator
FROM: Bruce Loney, Public Works Director
SUBJECT: Assessments for 2003 Street Reconstruction,
Project No. 2003-3
DATE: November 16, 2004
INTRODUCTION:
Attached is Resolution No. 6138, a resolution which adopts the assessments for the above
referenced project.
BACKGROUND:
On November 3, 2004, City Council had held a public hearing for the assessments
associated with the 2003 Street Reconstruction, Project No. 2003-3. At this hearing there
were three assessment appeals that were submitted by property owners objecting to the
assessment. The three property owners who objected to their assessments were as
follows:
. Shakopee Knights of Columbus
. Shakopee Ballroom
. Pinewood Estates Homeowner's Association
The Shakopee Ballroom and Pinewood Estates Homeowner's Association parcels
objected to the watermain assessment on their parcel, in which both of the parcels believe
there is no value or benefit of additional watermain to their parcel which already had
water services. The Knights of Columbus objected to their assessment being higher than
the feasibility report estimate particularly the sanitary sewer amount.
The City Council did close the public hearing and tabled the action on the resolution until
further information could be provided on the assessments that have been objected to by
the property owners. Attached to this memorandum is a November 4, 2004
memorandum from Joe Adams, Shakopee Public Utilities Planning and Engineering
Director to Lou VanHout, Utilities Manager in regard to the background on the
watermain agreement and assessments to the Pinewood Estates parcels and the Shakopee
Ballroom parcel. Also attached to this memorandum is a memo from Jim Thomson, City
Attorney, in regard to the likelihood of any assessment appeal and advising the City
Council.
Per Jim Thomson's memo, the likelihood of the City prevailing on the Pinewood Estates
Homeowner's Association for the water assessment is virtually impossible without an
agreement. The Pinewood Estate's property does have water services already and no
valid looping agreement is recorded on the property.
With the Shakopee Ballroom parcel, there are documents recorded on the parcel such as
the developer's agreement for Prahmcoll 1st addition and SPUC's Resolution No. 275
which is attached. Per the City Attorney, the likelihood of upholding the assessment for
this parcel is higher and thus the assessment should remain.
Staff has also met with the Shakopee Knights of Columbus representatives and their
objection is mainly with the increased cost of the sanitary sewer main assessment. If the
assessment is reduced by $6,915.00, the Shakopee Knights of Columbus would be
willing to withdraw their objection. This additional cost, if approved by the Council,
would be out of the Sanitary Sewer Fund. Staff and the City Attorney believes that the
difficulty of proving benefit to property with sewer already does justify the reduction of
assessment if a letter is received withdrawing their assessment objection.
It should be pointed out that SPUC will be reviewing the watermain assessment
agreements at their November 15, 2004 meeting. The action taken by the Commission
can be brought back to the City Council at the November 16th meeting. The assessments
for this project does need to be adopted before November 30, 2004 in order to certify the
assessments for 2005 and to meet the bonding schedule as previously approved by
Council.
The assessment roll for this project is attached and is as per the City Attorney's
recommendation for assessments to the Pinewood Estates Homeowners' Association and
the Shakopee Ballroom parcels. The reduction of assessment for Pinewood Estates due
to watermain is $51,538.18 and this cost will need to be discussed with SPUC.
ALTERNATIVES:
1. Adopt Resolution No. 6138 and the assessment roll that is attached to that
resolution.
2. Adopt Resolution No. 6138, with modifications, as determined by the City
Council on assessments.
3. Deny Resolution No. 6138.
4. Table action on Resolution No. 6138 for specific reasons and to a date before
November 30, 2004.
RECOMMENDATION:
Staff recommends Alternative No. 1 or No. 2 in order to adopt the assessments for the
2003 Street Reconstruction Project.
ACTION REQUESTED:
Offer Resolution No. 6138, A Resolution Adopting Assessments for the 2003 Street
Reconstruction - 4th Avenue, between Naumkeag Street and Shenandoah Drive; Sarazin
Street, from 4th Avenue to County Road. 101; and Cavanaugh Drive, from Sarazin Street
to the Union Pacific Railroad Crossing, Project No. 2003-3 and move its adoption.
. ~Loney
Public Works DI ector
BUpmp
ENGR/2003PROJECT/2003RECON/WORD/MEM06138
RESOLUTION NO. 6138
A Resolution Adopting Assessments
For The 2003 Street Reconstruction
4th Avenue, Between NaumkeagStreet and Shenandoah Drive;
Sarazin Street, From 4th Avenue To County Road 101;
And Cavanaugh Drive, From Sarazin Street To
The Union Pacific Railroad Crossing
Project No. 2003-3
WHEREAS, pursuant to proper notice duly given as required by law, the City Council of
the City of Shakopee met and heard and passed upon all obj ections to the proposed assessments of:
. 4th Avenue, between Naumkeag Street and Shenandoah Drive
. S~nizin Street, from 4th Avenue to County Road 101
. Cavanaugh Drive, from Sarazin Street to Union Pacific Railroad Crossing
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SHAKOPEE, MINNESOTA:
1. . That such proposed assessment together with any amendments thereof, a copy of which
is attached hereto and made a part hereof, is hereby accepted and shall constitute the special
assessment against the lands named herein and each tract therein included is hereby. found to be
b<;:nefittedpy the proposed improvements in the amount ofthe assessments levied againsfit.
2. Such assessments shall be payable in equal annual installments extending over a period
often years, the first installment to be payable on or before the first Monday in January, 20()S, and
shall bear interest at the rate of 5.00 percent per annum from the date of the adoption of this
assessment resolution. To the first installment shall be added the interest on the entire assessment
from the date of this resolution until December 31, 2005 and to each subsequent installment when
due shall be added the interest for one year on all unpaid installments.
3. The owner of any property so assessed may, at any time prior to certification of the
assessment to the County Auditor, pay the whole of the assessment on such property, with interest
accrued to the date of payment, to the City Treasurer, except that no interest shall be charged if the
entire assessment is paid within thirty (30) days from the adoption of this resolution; the owner
may thereafter pay to the County Treasurer the installment and interest in process of collection on
the current tax list, and may pay the remaining principal balance of the assessment to the City
Treasurer.
4. The Clerk shall file the assessment rolls pertaining to this assessment in her office and
shall certify annually to the County Auditor on or before November 30th of each year the total
amount of installments and interest on assessments on each parcel of land which are to become due
. in the following year.
:Adopted.i11.... session ofthe City Council of the City of
Shakopee, Minnesota, held this day of , 2004.
Mayor of the City of Shakopee
ATTEST:
City Clerk
ENGR/2003PROJEcrl2003RECONIWORDIRES6138
2003 RECONSTRUCTION
11/10/2004 Assessment
Current Deferred
PID# Owner Assessment Assessment *
27-004139-0 Scott County HRA -..,..
323 Naumbeag St S $ 1,979.69 $ -
Shakopee, Mn. 55379
27-036048-0 Shakopee Village Homes Assoc
316 1/2 Shawnee Trl $ 6,534.45 $ -
Shakopee, Mn. 55379
27-036049-0 Shakopee Village Homes Assoc
316 1/2 Shawnee Trl $ 6,090.17 $ -
Shakopee,Mn. 55379
27-068004-0 Randolph & Lisa Kubes
1244 Monroe Street $ 10,392.50 $ -
Shakopee,Mn. 55379
27-087007-0 Randolph & Lisa Kubes
1244 Monroe Street $ 24,169.69 $ -
Shakopee,Mn. 55379
27-087008-0 E 4th Ave Professional Bldg .
1407 Vierling Dr E $ 1,413.99 $ -
Shakopee, Mn. 55379
27-087009-0 Marquette Bank Shakopee
380 Marschall Rd S $ 1,644.14 $ -
Shakopee,Mn. 55379
27-090001-0 Citizens Sate Bank
11004 Ave E $ 1,481.19 $ -
Shakopee, Mn. 55379
27-117001-0 C & Q. Enterprises
6305 Blaisdell Avenue S. $ 56,552.83 $ -
Richfield, MN 55423
27-17800t-O Wiser & GustafsOn Partnership
802 Yellow Brick Rd $ 1,175.79 $ -
.:. Chaska, MN55318
27...191064-0 New Concepts Management .
4915;35 ST W $ 7,167.71 $ -
St Louis Park, Mn 55416
27 -206001-0 Allene & Betty Ross
450 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379
27-206002-0 Joan Saba
444 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379
27-206003-0 Lucille J Leaveck
446 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379
27 -206004-0 Kathleen H Hoffman
448 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379
. . '" .
2003 RECONSTRUCTION
11/10/2004 Assessment
I Current Deferred
PID# Owner Assessment Assessment <<
27-206005-0 Canterbury pointe Condo Assn
Gassen C6mpany $ 1,021.84 $ -
7275 Bush Lake Rd
Edina, MN 55439
27-206006-0 Bernice J Brasket
402 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379
27-206007-0 Joseph & Virginia Semrad
404 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379 .
27-206008-0 Margery A Mortland
406 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379
27-206009-0 Clement F & Teresa E Gerold ......c .C.O . .
440 Sarazin St $ 1,006.97 $ .;; ..i '-,
Shakopee,MN 55379 _._..~--- ','" - C'" C" '. _.
27-206010-0 Joyce E, Stein
442 Sarazin St $ 1,006.97 $ ..
Shakopee,MN 55379 .. .... ..
27-206011-0 Betty M Moldenhauer
436 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379
27-206012-0 Kenneth W & Carol A Frey
438 Sarazin St. $ 1,006.97 $ -
Shakopee,MN 55379 . /.
,......." .... ".. n
27-206013-0 Blythe Grunke . .
412 Sarazin St $ 1,006.97 $
Shakopee,MN 55379
27-206014-0 LouiseR Braun .....,: "< >.
414 Sarazin St $ 1,006.97 $ - '..
Shakopee,MN 55379 , . -
, 27-206015-0 Joseph F & Gretchen A Helkamp c' "' .
224 Red Poppy Trail $ 1,006.97 $ -
Georaetown, TX 78628
27-206016-0 Laura L & Viggo Sorensen
418 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379
27-206017-0 James L & Janet L Drabek
408 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379
27 -206018-0 Myrna L Thompson
410 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379
27-206019-0 Edward D Elgethun
420 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379
2003 RECONSTRUCTION
11/10/2004 Assessment
Current Deferred
PID# Owner Assessment Assessment ..
27-206020-0 Harley H & Donna R Gunderson
422 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379
27-206021-0 Anna S Moldestad
424 Sarazin S1. $ 1,006.97 $ -
Shakopee,MN 55379 .
27-206022-0 Allan & Darlene Grow
426 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379
27-206023-0 Margaret M Jansen
1526 4th Ave E $ 1,006.97 $ -
Shakopee,MN 55379
27-206024-0 David L & Marilyn J Perkins
1528 4th AveE $ 1,006.97 $ -
'" Shakopee,MN 55379 "
27 -206025-0 GH~e!:!"-":&~tella T Oelfke
428 Sarazin St $ 1,006.97 $ -
., '. Shak6pee,MN 55379
27-206026-0 .~Clt~Ie.e.I1. '3,A.nder~~n,_..
._"" -- .-
430 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379
27-206027-0 Robert L & Jane A Morrison
..... . .
15224 AVE E $ 1,006.97 $ -
Shakopee,MN 55379
27-206028-0 Elllen A Garlock. .
,.,' __ ._ _n. .'"_. _..".. $
1524 4th Ave E $ 1,006.97 -
Shakopee,MN 55379
27 -206g2,9-0., JoE &F~Glxmond P CrCloks
15184th,A\feE $ 1,006.97 $ -
.' Shak6pee,MN 55379 , ,
27-206030-0 _~,am~s_~,,~}\"~rl~nE:l,~,~~abrel~ik. .. ..'
434 Sarazirlst -. $ 1,006:97 $ -
Shakopee,MN 55379
27-206031-0 Gregory W Dummer
432 Sarazin St $ 1,006.97 $ -
Shakopee,MN 55379
27-206032-0 Elouise M Solum
1520 4th Ave E $ 1,006.97 $ -
Shakopee,MN 55379
27-206033-0' Kristin & William Henak
280 Eastwood C1. $ 1.006.97 $ -
Chanhassen, MN 55317
27 -206034-0 Leonard & Paula Frohnauer
15144th Ave E $ 1,006.97 $ -
Shakopee,MN 55379
2003 RECONSTRUCTION
11/10/2004 Assessment
Current Deferred .
. PID# Owner Assessment ' . Assessment *
27-206035-0 Howard Cichy .'
1516 4th Ave E $ 1,006.97 $ -
Shakopee,MN 55379
27-206036-0 Mary J Lilly
1510 4th Ave E $ 1,006.97 $ -
Shakopee,MN 55379
27 -206037-0 Melvin A &Dorothy B Malz
1504 4th Ave E $ 1,006.97 $ -
Shakopee,MN 55379
27-206038-0 David W & Marion N Morison
1506 4th Ave E $ 1,006.97 $ -
Shakopee,MN 55379
27-206039-0 Dennis & Rita Wuerflein
15084th Ave E $ 1,006.97 $ -
Shakopee,MN 55379
27-206040-0 MarlysL Flanigan
1502 4th Ave E $ 1,006.97 $ -
Shakopee,MN 55379 " ,
27-214080-0 Pinewood Estate Homeowners Asn .,'. I' .
543 Timber Court $ 16,232.88 $ : ....
-
Shakopee, Mn. 55379
27-214081-0 Pinewood Estate Homeowners Asn
534 Timber Court $ 12,246.26 $ -
Shakopee, Mn. 55379
27-905018-0 Shakopee Council 1685 Home
17604 Ave E' $ 35,451.27 $ -'. ...
Shakopee, Mn. 55379 c
27-905020-0 Shakopee Cemetery Assoc
350 Atwood Street S. $ - $ - ,',c
Shakopee,Mn. 55379 .. .. . .n
27-905021-0 United Land LLC . ..: "n
..
3500 80 ST'W $ 517,088.88 $ .:..,......
~- -.-.. ,.-.". Bloomington, MN 55431
27-905024-0 Shakopee Public Utilities Commission .. .- - --.-.-... _..-.._-.
255 Sarazin Street $ 253,822.12 $ -
Shakopee, MN 55379 .
27-906017 -0 Rakesh/Phulmatiee Chandradat
5676 136th S1. C1. $ 1,316.00 $ -
Savage, MN 55378
27-906018-0 Shakopee 62 Partnership
Heartland Bank $ 15,478.48 $ -
14125 Clayton Rd
Chesterfield, MO 63017-8355
27-906028-2 Juergens Construction
2231 Hillside Drive $ 7,879.42 $ -
Shakopee, Mn. 55379
2003 RECONSTRUCTION
11/10/2004 Assessment
Current Deferred
PID# Owner Assessment Assessment *
27-906033-0 Randolph & Lisa Kubes
1244 Monroe Street $ 1,104.49 $ -
Shakopee, Mn. 55379
27-906035-0 Shakopee Public Utilities Commission
City of Shakopee - City Administrator $ 659.86 $ -
129 Holmes St S
Shakopee, Mn. 55379
27-906052-0 JLO Investments LLC
6285170 ST E $ 104,042.71 $ 33,976.67
Prior Lake, MN 55372
27 -906053-0 Arthur J & Martyne J Hatch
4288 Sanctuary Way $ 5,664.57 $ -
Bonita Springs, FL 34134
27-906054-0 The Kelley Family L TO Partner~hip
250 Sarazin Street 125,000.00 $ 100,000.00
Shakopee, MN 55379
27-906055-0 Timothy R Dressen
1058 Marschall Rd $ 19,41~.Or ~
Shakopee, Mn. 55379
Total Current Assessment = $ 1,274,294.83
Total Deferred Assessment = $ 133,976.67
Total Assessment = $ 1,408,271.50
- -- . -
SHAKOPEEPUBLIC UTILITIES
MEMORANDUM
TO: Lou Van Rout, Utilities Manager
FROM: Joseph D. Adams, Planning & Engineering Director
SUBJECT: 4th A VENUE PROJECT - 2003 STREET RECONSTRUCTION
WATER MAIN AGREEMENTS & ASSESSMENTS
DATE: November 4, 2004
INTRODUCTION
The attached memorandum from Public Works Director Bruce Loney requests assurances
from the Utilities Commission that the City would be reimbursed by the Utilities
Commission for the water main assessment to two properties in the project, the Pinewood
Estates PUD and the Shakopee Ballroom, if the property owners successfully appeal their
assessments.
BACKGROUND
Property # 1
The Pinewood Estates PUD was developed in 1996-97 by the Barrington Corporation,
represented by Mr. Dale Dahlke. The development is. located adjacent to the Shakopee
Ballroom and is bordered by Shenandoah Boulevard on the east, Eastway A venue on the
south, the Prairie Estates Addition on the west and 4th Avenue on the north.
At the time of the development, staff attempted to require the developer to address
standard water main design criteria requirements that Mr. Dahlke felt were unnecessary.
Staff believes the requirements were necessary. Those requirements are ones all parcels
must meet to receive municipal water service and include: install water main completely
across the parcel in at least two directions (generally north to south and east to west) and
meet the flow equivalent of a 6-inch diameter pipe every 400 feet in a grid pattern.
While the development's proposed water system met the requirement to install a water
main across the parcel in the east to west direction, there were not enough pipes of
sufficient diameter to meet the flow requirement in that direction. So, a water main along
4th Avenue was necessary to meet the east to west flow requirement. Also, the north to
south water mains did not extend allthe way to 4th Avenue.
Timing of improvements to 4th Avenue was an area of concern. Installing the water main
along 4th A venue was judged to have been premature given the city's intent to widen the
road and convert it from a rural to an urban section with curb and gutter. Adequate water
main depth meant bedrock excavation would be minimized if the installation were timed
to coincide with the road reconstruction.
However, there was also uncertainty ofthere ever being a water main installed along 4th
A venue to loop a north to south water main connection. Due to the shallow bedrock in
the area, it was recognized that a development plan for the property north of 4th Avenue
mi~t advantageously shift the future water main to the north along a parallel path to 4th
Avenue.
Thus, an Agreement to Complete Water System outlining the development's deferred
requirements was determined to be the best course of action to allow the development to
proceed, while protecting the integrity of the water system's design criteria.
In order to get approval from the Utilities Manager for the development's water system, I
drafted and Mr. Dahlke signed, as Vice President of Barrington Corporation, the attached
agreement. The agreement was supposed to be signed by the Utilities Manager and
recorded on the property via a Commission resolution. However, the wording of the draft
agreement did not meet Lou's approval because there was no real security to bind the
developer or successor property owners. I was supposed to re-draft the agreement and tie
in some sort of security, such as an escrowed amount of money or letter of credit for the
improvements.
Unfortunately, it was a task to get to that never got done. The installation of the
development's water system proceeded, lots were sold, and homes were built and hooked
up to water service.
The city's reconstruction project this year finally brought the water main along 4th
Avenue and staff believed the water main along Spruce Street to connect Pinewood
Estates to 4th Avenue was a necessary part ofthe system, so it was included in the project
plans.
Staff told the city the utilities had an agreement to complete the system signed by the
developer and to assess the property adjacent to the water main along Spruce Street and
4th A venue. That property consists of two out lots owned by the Pinewood Estates
Homeowner's Association. The proposed water main assessment for Pinewood Estates
totals approximately $51,500, $25,100 for the water main along Spruce Street and
$26,400 for the water main along 4th Avenue.
Property #2
The Shakopee Ballroom was originally constructed in 1984. The property is a part ofthe
Pram-colI Addition and is located at the southwest comer ofthe intersection of 4th
A venue and Shenandoah Boulevard.
The attached Resolution #275, adopted by the SPUC on April 2, 1984, authorized water
service to the parcel with conditions requiring a future water main extension along 4th
A venue. This resolution was recorded on the property records and even though
ownership has since changed, the present owner should have been aware of the
requirement when the property was purchased.
Staff told the city that the utilities had an agreement filed on the property and to assess a
proportionate share ofthe 4th A venue water main costs to the Shakopee Ballroom. The
proposed water main assessment for the Shakopee Ballroom property is approximately
$27,700.
DISCUSSION
Property # 1
While the intent of the requirement is there as evidenced by the developer's signature on
the draft agreement, the agreement was never signed by the Utilities Manger, adopted by
the Commission via a resolution and recorded on the property.
Staff has asked Corrine Thomson of Kennedy and Graven to review the file and comment
on the request from Mr. Loney. She has advised that an argument can be made that the
requirements listed in the draft agreement are standard design criteria, and the
Commission can attempt to enforce those requirements on the current property owners.
However, an appraisal of the property would have to show that there is increased value to
the property from the assessed improvements.
Corrine also said that the Commission could seek to enforce the agreement on Barrington
Corporation. However, Mr. Dahlke andhis partner in Barrington Corporation, a Mr. Al
Furrie, have informed me that the company has ceased doing business and has no assets.
Property #2
Since Resolution #275 included the future water main requirements and was recorded on
the property records, staff feels the agreement is sustainable should the property owner
appeal the assessment.
Staffhas asked Corrine Thomson of Kennedy and Graven to review the file and comment
on the request from Mr. Loney. She has advised that the Commission can feel confident
that the agreement will be upheld in a challenge, although there are no guarantees when
going into a courtroom situation.
MEMORANDUM
TO: Mayor and City Council
FROM: Jim Thomson, City Attorney
DATE: November 10, 2004
RE: 2003 Street Reconstruction Project; Assessments for Pinewood Estates and
Shakopee Ballroom Properties
I reviewed the background material to determine whether the City Council has a reasonable basis
for levying the water main assessments against the property owned by Pinewood Estates
Homeowners Association or the property where the Shakopee Ballroom is located. A brief
history of the development of those properties is needed in order for the City Council to
understand the assessment issue.
Shakopee Ballroom Property
The City Council approved the plat for PrahmColl First Addition onMarch 19, 1984, and the
plat was recorded on April 2, 1984. That plat created two lots: Lot 1, Block 1, which abuts
Fourth Avenue, and Outlot A, which has no frontage on Fourth Avenue. A copy of the plat is
attached to this memo. Construction of the Shakopee Ballroom began on Lot 1 shortly after the
plat was recorded.
The PrahmColl developer's agreement was also recorded on April 2, 1984. In that agreement,
the developer petitioned the City to construct two water mains - one in Fourth Avenue and one
700 feet south of and parallel to Fourth Avenue. The developer agreed to waive any objections
to the assessments for those water mains, and the agreement stated that it was binding on all
future owners of the property. The agreement also stated that the developer and the City
understood that the water mains were not being required at that time and that the City retained
the exclusive discretion to determine when the water mains would be constiu~ted.
On April 2, 1984, SPUC adopted a resolution authorizing a water service connection to Lot 1.
The resolution states that extension of future water mains across or along Lot 1 may be necessary
and that the owner of the property had agreed that when those extensions occurred, the property
would be treated for assessment purposes as though no water service existed to the property.
The resolution was recorded on July 16, 1984, and a copy of it is attached to this memo.
The property where the Shakopee Ballroom is located has been conveyed several times since
1984. Each conveyance took place after the developer's agreement and the SPUC resolution
were recorded. Therefore, each new property owner took title with notice of the provisions in
those documents.
JJT-255507vl
SH155-124 1
Pinewood Estates
Pinewood Estates was platted in 1996. Outlot A of PrahmColl First Addition was part of the
development along with other property to the west. A copy of the final plat is attached to. this
memo. As part of the approval process for Pinewood Estates, the City released Outlot A from
the PrahmColl developer's agreement.
In the Pinewood Estates developer's agreement, the developer (Barrington Corporation)
petitioned for the installation of the water main necessary to serve the southerly portion of the
development. That water main was constructed and the assessments for it have been paid. The
developer installed the water main needed to serve the northerly portion of the development and
therefore no assessments were adopted for that water main.
The developer's agreement for Pinewood Estates did not obligate Barrington Corporation to
construct, or pay for the construction of, any future water mains. Barrington Corporation,
however, signed an agreement with SPUC agreeing to construct future water mains needed. to
complete the water system for the property. A copy of that agreement is attached to this memo.
The agreement describes the future water mains as an 8 inch water main from Ash Street to
Fourth Avenue along the west side of Spruce Street and a 6 inch water main along the portion of
the property (Outlots A & B) bordering Fourth Avenue. That agreement was not signed by
SPUC and has not been recorded. Outlots A & B were subsequently conveyed to the
homeowner's association and we have no information that would lead. us to . believe that the
association was aware of the partially executed agreement.
Analvsis
Buyers purchase property with constructive notice of instruments and documents that have been
previously recorded against the property that they are buying. VVhether those recorded
documents bind a buyer to any specific obligation depends on what the documents say.
The Pinewood Estates property is already adequately served by public water service. Therefore,
it will be difficult to establish that the property is financially benefited by the water mains that
were constructed in Fourth Avenue and Spruce Street as part of the 2003 Reconstruction Project.
Unless the homeowner's association is obligated to pay for those water mains for some other
reason, it will be virtually impossible for the water main assessments to be upheld. Although the
developer arguably agreed to pay for the construction of those water mains, that agreement is not
binding on the homeowner's association because. it was not recorded and, to the best of our
knowledge, the association did not know about it.
The facts with respect to the Shakopee Ballroom property are different from the Pinewood
Estates development. The developer's agreement for that property obligates the developer and
any future owner of the property to pay for the assessments levied for the future water main in
Fourth Avenue. That agreement was recorded. In addition, the SPUC resolution was recorded.
JJT-255507vl
SH155-124 2
Based on those facts, the current owner of the Shakopee Ballroom property should have known
of the obligation to pay for the future water main extension along Fourth Avenue. Whether the
waiver provision in the developer's agreement or the statements in the SPUC resolution are valid
and enforceable would be an issue that would be decided if the property owner chooses to pursue
an assessment appeal. Nevertheless, there is a reasonable basis for the City to adopt the
proposed assessments against that property.
Conclusion
III my opinion, there is not a reasonable basis for the City Council to levy the water main
assessments against the Pinewood Estates property. There is, however, a reasonable basis for the
water main assessments to be levied on the Shakopee Ballroom property.
JJT-255507vl
SHI55-124 3
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Jt/,,,-, ",. ~:~~~ Valley Engineering Co.. Inc. ~
- . . - . XL PRIM LAIfl! JlII/HESOTA -n
"d~.' ~ J.
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Nov-10-04 15:16 From-Kennedy & Graven +6123379310 T-152 P,006/010 F-857
. ~J2Lo
RESOJ.C'1'IO\'l !.215
II 1Q::9ox.onol't ll~B;I;WG
1IATSA SERVICE
'1'0 ~ p~ac:m. OP I.AND
mmREllS. 't:ne cwr.e:~ tit! II. parcel of lanc1 ~cIant:.i.f1lQ4 ~ %,gl: 1. Block 1,
kahlll-Co11 SObD1: ~i.UQn 1un-einafter c:~cC1 "pm:cel n h~ :r:oq,ueet:ed e~ty \fa'l:er
aezvice.
MtJ WHEJlJ!:)l:J, " c::Li:r lia~ah. edlll'l:lI a.pplI:CllKj,1lI&1:Q1, 66.:taef:. eas1:8:rl~ of
.nd p.,..........Ua1 to ~ 2b~t: ii.lUl at' this .Darcel of Land aml sa1d wat;e~n e2C'C:enl19
for dJe entire length at t.1Ie: E:J.st Une Clr 1:110:1: 'Parce;l. Al:. 'tOne: AP.e>='Cx:l1'lQtc 56
:tco'C d1.:!II:,~c:t!, .
f'tND ~s, '1;1'10 'nc~ion. of \Iate:zomaiDs ac:r;'OSS or al.onq the parcel of
pro.QGJ:'t:y JAay be necassa.l'Y a.t:. a fatlU'8 ~~me: and. tbe l1k:C111j,hOCld of th.:i.D ocu::UZ'Z'enae
:Ls U~B'Cocd 1:1)" ehc ClWIlea:: oE~b:L~ ,EN>Z'o.,3. 01 ~ropQ~.
At.Itl ~$l. ~ 0WftAZ' af ~ :parcel of land. haG Ilg:r:eecJ that: at: 'the t.1llre ot
such extension cd; \oIat:ensaing to bel tZ'ea-eeC1 ~or assesmDenl:. pw:po::Jc~ ,"". though
\lA1:e:' se.rV'.1,1:C <l1C1 no'\:: ex1s'\:: 'Co 't.Jloe ;po~ccl of lena pnoJ: 't.o said g~t:anc.f.an of!
.
'lHlo"=o-"'~"'1r cmCl a.:&.DO n-q ~9Z'gQ4 1:0 xe~a '1;1111 i:su:ms. and cQndJ.t~ons Qf th.1s
1t.u~glut:iQn an the ~peJ:~Y rcc0z:"4 with ~e Scott Coun~y BecOX'QQr. s:a1d ~e=s
imd con~1~1cns "C.o be b1nl11ng on l:tlUl Clnc1 .fu=s:: F"PI:S~Y .-neZ',",
NCl'lf alRB.RIill'CIJUi 10)11; %1Il JU:SOLWD. by 'dIG s:b:l.1topGlIt Public Utilities cOIllllli.ss.1cn in
WUIt:.inq duly auemblett this 2ndda~ of .APril. ~984 that3
A W~'C6J:' :IUvid! CClnntsct.:LOn 19 aut:1w.r1Z8a eo tie D\l:ldc in ~bcll!l1;ree1:: r:i.9bb-ot-~
or J'Q\lrtt\ l\.ven\ler 'CO the lI::XiI:a~ing ~ra~, aM ;is PQQit"t.od 1:0 oxt:.l1nd 1:0 the
.
~~cQl oi: ~2:'1:y known as r.Cl~ 1. Jlleck 1. ot Px'iJhm-caU Pb'at. J\Qdition. In
4CCgli:C1auc:e ril:t1 th~ terms anCl unat!l."s-r:ana1h9'S aesc;dbe4 1n "h;&'~ &::l!oab:l:.i.on, And
. "-n ~Cl:arQQnc:.. ,....,.,. ~ otbc::a: :5'CCIln.:Jozd. i:c=me &ria eo...u.i::IAonO: a.ppls.c..,.b1~ 1!or uat:er
&:,,~1oe.
Passed in z'eaulAr session of tho Sb.zskcpae Ttubl1c: UUJ.1.t1.e6 COllIlI\:l.$910n 1:J\J.:s
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~~ LAWD .u.Y.~oaa. LTD.
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SHErr 2 OB 2 SHB.C1'S J.
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Nov-l0-04 15:17 From-Kennedy & Graven +61Z3379310 T-15Z P,008/010 F-857
, "
::,,:,), ,,, Tha 2l,9'.J:'.e~ent !:ncumbers property as described in exbibi.t "An attached hereto.
.' :..' " .,'
. "'" , ,:,'. ~emBnt ~l!!t\feaen ~:hiikopee 1>\.lblic Utilities Ccumi.ssion (comndssion) and " :"
'. :<;, ' " B~AY:7'"~C[/ ~I<PIJR/f7/~J ....
, , '" , (DCl'1eloper) . . ":.'
- .
, ,
. . . " ~e de'l7eJ.QPer baE requested city water be extended 1:.0 sens property desc:.:ri:Ded
',. ;' .::, as: gAl{WH.~ ~~~
. ...
: Dl1e to 'the uncie.ttmllU1cd. ~utUX'c 4GvelopllleJ1C of the property d~c.Hbed ion exhibit
"A" ;md due to the desi2:e of the d9V'81optl2:' = sec:w:e ai.ty Wl1te:r service to the p::ape:rt1
!:!ascribed above, dE'U'eloper requosts approv~l of;Ul J"'GP~~ ~ .~~~
to sene the propen'.y dB!lcxibed above for which he hae re eated water s~rv1ce: and
,.. agrees to const:ru.l:t. a.acll'tional wate:tlDClu and appuxtenanct:5 in ~e future a.t such. tiIlle .
1::h2:.t ~11 or port of' tlle property descr1bed in eXhi1:lit "A" is Cleveloped or u1:ili2ed "
h1 any way OX~8pt :f a:mLand.. The property d.esoribed in exhibit "AI> does not now have; . .
awi will not Mve c'ity wate%' available until the eOn3truction af addillona). wa:tcxmai.n
and a......,,'..tananee~. .' .' : ' .',
1:'._ I ~ f.\.
Developer furU'ler a.grees to constxuct said additional wate%'llll11.n and 8J?punenanCe~' :~. '.~'
in accordance wi'th c:amm1ssion standara policies and speClif'-o reqo.i.rements at the sale .:': ::
cctt and. e:x;pence of' the Oeveloper. . '. ,.1'
Standard polides shall be those which are in effect at the time of ac1:l:al c~-'" '
struc:tion of the ft,tQX'~ watermain. Specific cOI'IlIIlission rcql1iremcnts are described . "
"~$~t~~~ ~~ ~.">;"':'"
. .... .' . . ~ - -~ ~-~ -- - - ~:/~. - ~3r ;'<,'.
: ..' ", 'l'his Zlgreelllent 5h.'1.11 bo f.ileCl with Scott County Recorder, it: shall be binding on '. : . .
, . ':' ::::', , heirs suec~ssorG, 3.111:3. assic;ns &md shall continue in force lmtil tw::mina:ted by IIl11tual., ,
, , , . agreement between cievelope:r and Commission. I. . .; .:....
. ';, 'l"he Developer Clonvanants that. iie~ in agreement ~th tho ;shove Stat0llCl1ts. ie . .;~ .... .:.
" . , , . the owner of the l.Ul.l:ls I'lescribed ill"'" f1i~ itA" and further covenantt; that the sad.ti'.,::,:"t:,:, I
lands /:l.r8 :fz:ee ;:and. C'le.u: of' aD. enc1>>llbrances: anc!I liens exce,pt: the foJ.lowin9= ".t". ..,,' , '':,
" . . . . . .-, .J,i~ 1':...;.t~T".
, . ..... ":~~. '.l:/
_ ofr (.
" ':.' .'... . ff.{... "';....:
, " All of Wbiab have c:clIlsentec1 heretD in writing as hereinafter appears. . ..', '. . ~. ~:,:,r~
":. :tN 5S'J:J:MON:e ii~REOF. the parties have hex'eunto f1xeCl tbei:r hand.9 3JJd. eeal.trazf.tli:l:at.,
. , 1 ;: .... ~ \, . .~; ~".c.::
olayof__ .19_" ~ _~.;~~;';>;:~":
',' .. ".,' DBVBLOi'ER:X ~' "', "~.~" ',:'l:.
'" '.. ;~".,.
~ . . . ,. : '-'t'. : t'
. '" SH1\X.Cl;'EE PUBLIC Ul'ILI'l'IES COMMISSION: X " .,
, , : UtiUt:Lco Managex' . .
',:: sbokapea publlc lJ't:i.1:t ties c:::.::.mm:&....ion
S:rA'l'E OF MDmESO'l'A ' .
.. , . " ' County of
" 'J.'he ~oregoi.ng' ins1:ra\I1ent: was adcnowJ.edge4 before JIle dU.s day of .
, , " 19_, by _ OWne:r:/Develcper.
, . " ,', ,", . .
, . Notary Public County,):lN.
My Col\'lIlIiCGion expire&: , J.9 ..:-'
, ' 'l'ha tDrogoing instrument. ~ ackn0l111e.dgeci before JIle this day of
" 19_, by Louis \lomFIout, Utilities Manager, Shakopee Public utiJ..it1es CollllDi.ssion.
.., ",
Notary Publ:l.c County, Minn.
.. MY Co=Micoion ~irec , 19 .
. , Appz:ooved as 'CO :l!orIl1:
1C1-.!I.S1J e.n.a Mons:-oe Cha:i:crcQ
, ShaJl;opcc, HN S537~
" CQIIaIlis.llion AttorDc:lS
Drnf1:ed ):)y,
ShakoPQQ li'u:b:L.ic tJt.iJ.it:Mlli' COIIIIIIission
J.030 East f'ou:1:h Avenue
Shskopee, MN 55379
Nov-10-04 15: 18 From-Kennedy & Graven +6123379310 T-152 P,009/010 F-857
, ': " ,~':,,'!b;J.
.. .' ~,~~:"'tl
'r,: S;;-.;f~\,.\~
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'l'h.e und~signed. an owner of an enO\l,l'I!b:;:anc:e 0: encu:mb:anc~ en the l':lnd. , . "", '~\/'D';'~' ,';';~
t'(.f{~'~-:'\-'.lWo:'Y" .
d~:i:bed )Jj ~~.f!~ercto a:c.tached, hereby consent ~ join in the agreement I. ~,;. :~!Y5.:ir.?;'
p..~ ~)f % ~ .' '. ""!,",~.l'.~..,r;~
to cOIlIp1ata water sy~:t:ellII ereinfQre given. .,'. \.....,........1'.
..: i.... !J:r:.'~: .,.l.~\t
..... '11', .1.)..
.' . /. "'I:.:'~ ;" o.:!:"
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" "
STATE OF MINNESOTA'. " ',;, '..:; ,~
. . '~.'
C t f . ' (,......,,1.;.;
oun yo, '.' ' ,
',- .' ,". ....~..
Tbe foreg~ iIlst:r1Jrnent: was. acknowledged before ilia this day of ',' ,} "'l,.., ~
. "
00 c'
, 19_, by 0' ...
. ' ..;...: .; .
.. "'\. ,.
" '.'
..... .'
, , . NOta.xy Public. County, Minnesota ..
" ~ commiss!on axpires 19 ::: f 7 '
. - . I, .
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Krass and t'lon:oc Cha:n:ell:'ed :
.. ShakoPQQ, ~ 55319 ;
, , Commission ~~tornoyc ..
Dr:Lr'C<lCll By:
, , Shakopee PUblic Util~tie3 Commission . .
1030 )l:a~t Four'Ch Avenue .
, " Shakooec, ~~ 55379
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OBJECTION TO ASSESSMENTS
TO: THE CLERK/MA YOR of the CITY of SHAKOPEE, MINNESOTA
FROM: SHAKOPEE KNIGHTS OF COLUMBUS, COUNCIL 1685
Home property owner of Parcel ill No. 27-905018-0, land
Described as Section 5, Township 115, Range 22,
The North 499.7 feet of the Northwest Quarter of the Southwest
Quarter excepting the East 975 feet thereof (the legal description
from the tax statement)
Objection is based on the excessive cost exceeding estimate cost of improvements
for the North side of the property on 4th Avenue.
Total estimated cost $32,212.96.
Total assessment cost $42,924.85.
This is $10,711.69, which is a 33% increase.
The Knights of Columbus Hall has a private sewer. The engineering department
televised the sewer lines. Some of the pipes were cracked and recommended that
sewer should be replaced during construction. The City would pay half of the cost.
Specific objection is the cost of sanitary sewer.
Total estimated cost for sanitary sewer $7,892.50.
Total assessment cost for sanitary sewer $14,833.64.
This is $6,941.14, which is an 81 %. increase.
This total area is 300 feet, plus or minus of sewer pipe, which is $494.00 per foot
for half the cost. Total cost is $988.00 per foot for full cost.
If the City reduces the assessment by $6,915.00, the Shakopee Knights of Columbus,
Home Association Board does withdraw its objection to the assessment on their property
off of 4th avenue.
Dated: November 13, 2004
SHAKOPEE KNIGHTS OF COLUBUS, COUNCIL 1685
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