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4101 Nicols Rd - Connection Charge & Assessment Deferral Agmt & Amendment Agenda Information Memo December 3, 2013 Eagan City Council Meeting U. CONNECTION CHARGE & ASSESSMENT DEFERRAL AGREEMENT PROWIRE ADDITION ACTION TO BE CONSIDERED: Approve an Amendment to the Connection Charge Agreement with Lot 1, Block 1 Prowire Addition, that provides an Assessment Deferral, and authorize the Mayor and City Clerk to execute all related documents. FACTS: • On June 18, 2002, the City Council approved a connection charge agreement between the City and the owner of Lot 1, Block 1 Prowire Addition (4101 Nicols Road), providing for the calculation of connection charges for storm sewer and water utilities fees in a manner different than standard City policy, due to the unique linear configuration of the Prowire property. The agreement provides for the future payment of connection charges, if the northern portion of the property is further developed. • On November 19, 2013, the City Council approved the final assessment roll for the Nicols Road Street Improvements under City Project 1120. Lot 1, Block 1 Prowire Addition benefited from these street improvements and was assessed under the project accordingly. Consistent with the original agreement, the levied street assessment for the property was calculated to reflect its unique configuration. • The northern most end of the parcel includes a private storm drainage pond that collects runoff from the parcel, as well as state highway right-of-way and Nicols Road. Due to the public drainage, it would be appropriate to have a public drainage and utility easement encompassing the pond to allow for runoff storage and maintenance activities. The property owner has agreed to provide the public easement. The City's assessment policy does not assess ponding areas within public easements. • The original connection charge agreement is proposed to be amended to reflect the new drainage and utility easement and includes revised future storm sewer and water utilities fees payment calculations. • The deferral of payment for street assessments benefiting any future development is also provided for in this agreement. • The property owner has agreed to the amendment. Engineering staff and the City Attorney's office have also reviewed the amended connection charge agreement, and associated assessment deferral, and found it to be in order for favorable Council action. ATTACHMENTS: • Amended Connection Charge Agreement, Prowire, pages through FIRST AMENDMENT TO CONNECTION CHARGE AGREEMENT This First Amendment to Connection Charge Agreement ("Amendment") is made and entered into this day of , 2013 (the "Effective Date"), by and between RJR Enterprises, LLC, a Minnesota limited liability company (hereinafter "Landowner") and the City of Eagan, a Minnesota municipal corporation (hereinafter the "City"). (The Landowner and the City are collectively referred to as the "Parties"). WHEREAS, Landowner is the fee owner of property located in the City of Eagan, County of Dakota, State of Minnesota and legally described as Lot 1, Block 1, PROWIRE ADDITION (the "Property"); and WHEREAS, the City and Landowner's predecessor in title entered into that certain Connection Charge Agreement, dated June 28, 2002 and recorded with the Office of the Registrar of Titles on July 12, 2012 as Document No. 471376 (the "Connection Agreement"); and WHEREAS, the Parties desire to amend the Connection Agreement to modify connection charges that may be imposed upon the Property at the time of the expansion of any existing building or subdivision of the Property and to collect additional street assessments associated with any expansion or subdivision. NOW, THEREFORE, in consideration of the recitals set forth and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties do hereby agree as follows: 1. WAIVER OF OBJECTION. Landowner hereby waives its right to object to the collection of future connection charges which may be imposed by the City upon the conditions set forth above. 2. AMENDED CONNECTION CHARGES. In the event of expansion of the existing building on the Property or a subdivision of the Property, the following connection charges shall be imposed: Original Previously Drainage & Remaining Total Paid utility frontage/area frontage/area frontage/area Easement for to be charged pond with future frontage/area development Water Lateral 1,095.95 feet - 712.07 feet - 290 feet = 93.88 feet Storm Sewer 60 feet - 60 feet - 0 feet = 0 feet Lateral (15" pipe Water 3.46 acres - 2.25 acres - 0.64 acres = 0.57 acres Availability it 3. STREET ASSESSMENT. In the event of expansion of the existing building on the Property or subdivision of the Property, the Landowner shall be responsible for deferred street assessment of $7,018.62. The street assessment shall bear interest at the rate of 3.5% per annum commencing on the Effective Date of this agreement. The street assessment was calculated with a credit of 209.95 lineal feet at $33.43 per front foot for a total of $7,018.62. 4. BINDING EFFECT. This Agreement binds and benefits the parties and their heirs, representatives, successors and assigns. 5. No OTHER AMENDMENTS. Except as hereinabove amended, all other terms of the Connection Agreement remain in full force and effect. LANDOWNER: RJR Enterprises, LLC, a Minnesota limited limited company By: Its: STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of 2013, by the of RJR Enterprises, LLC, a Minnesota limited liability company, on behalf of the limited liability company. Notary Public City of Eagan, a Minnesota municipal corporation By: Mike Maguire Its: Mayor By: Christina M. Scipioni Its: City Clerk 2 STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 2013, by Mike Maguire and Christina M. Scipioni, the Mayor and City Clerk of the City of Eagan, a Minnesota municipal corporation, on behalf of the municipal corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Dougherty, Molenda, Solfest, Hills & Bauer P.A. 7300 West 147th Street, Suite 600 Apple Valley, MN 55124 (952) 953-8840 (RBB: 206-33037) 3 I City Council Meeting Minutes December 3, 2013 2 page D. It was recommended to approve the 2014 Enterprise Fund budgets for Public Utilities (Water, Sewer, Street Lighting, Storm Drainage/Water Quality), Cascade Bay, Civic Arena, Community Center, and Fiber Infrastructure (AccessEagan). E. It was recommended to approve the 2014 Special Revenue Fund budgets: Housing Fund, DWI Forfeiture Fund, Minnesota Investment fund (MIF) Revolving Loan Fund, Cable TV Franchise Fees Fund, Cedar Grove Special Services District Fund and E-TV Fund. F. It was recommended to approve the 2014 Eagan Convention and Visitors Bureau (ECVB) Budget. G. It was recommended to approve a Resolution Renewing existing alcohol licenses for 2014. H. It was recommended to approve a Resolution directing the City Clerk to issue 2014 alcohol license renewals upon licensees' submission of renewal documents and fees. 1. It was recommended to approve a change of manager for Granite City Food & Brewery's On- Sale Liquor License. J. It was recommended to approve a change of manager for Axel's Bonfire's On-Sale Liquor License. K. It was recommended to approve a change of ownership for Davanni's On-Sale Beer License. L. It was recommended to direct preparation of an ordinance amendment to City Code Chapter 6 relative to coal tar sealants. M. It was recommended to approve the Final Subdivision - Eagan Pointe Senior Living. N. It was recommended to approve an extension of recording Final Subdivision for Dakota Path. 0. It was recommended to present a Feasibility Report for City Project 1140, Stonebridge Ponds and Schedule Public Hearing (January 7, 2014). P. It was recommended to present a Feasibility Report for City Project 1139, Oakwood Heights 2nd Addition and Schedule Public Hearing (January 7, 2014). Q. It was recommended to present a Feasibility Report for City Project 1137, Alden Pond and Schedule Public Hearing (January 7, 2014). R. It was recommended to approve City Contract 13-25, CLIMB Theatre, Blackhawk Lake Protection Project. S. It was recommended to approve the Final Payment, City Contract No. 13-07, 2013 Citywide Trail Improvements. T. It was recommended to approve the Final Payment, City Contract No. 13-06, 2013 Citywide Parking Lot Improvements. U. It was recommended to approve an Amendment to Connection Charge Agreement & Assessment Deferral Agreement, Lot 1, Block 1 Prowire Addition. V. It was recommended to approve the Inflow & Infiltration (1&1) Program Surcharge Appeals. W. It was recommended to approve the Plan of Dissolution and Distribution of Assets of the Gun Club Lake Watershed Management Organization. X. It was recommended to approve a Resolution accepting a $1,866.00 donation from an Eagan Business. Y. It was recommended to approve a Resolution to accept a donation of $29,590 from Flint Hills Refinery for the purpose of purchasing a Fire Prevention kitchen Fire Simulator Trailer. Z. It was recommended to approve the Change Order No. 2, City Contract No. 13-12, Cedar Grove Parkway Trail & Lighting Improvements. AA. It was recommended to approve a Resolution to accept a donation of $2,760 from the Commons on Marice for the Fire Department and Authorize the necessary budget adjustments. '-I/O) co is ki Receipt# 308179 TORRENS FEE Return to: DOUGHERTY MOLENDA 7300 WEST 147114 STREET STE 600 APPLE VALLEY, MN 55124 11 11111 11111 ill 11111 1111 1111 1111 1111 $46.00 T726383 Recorded on: 12/17/2013 01:31:48PM By: CAC, Deputy Certificate #: 125400 Joel T. Beckman Registrar of Title Dakota County, MN FIRST AMENDMENT TO CONNECTION CHARGE AGREEMENT This First Agtendment to Connection Charge Agreement ("Amendment") is made and entered into this day of {--, , 2013 (the "Effective Date"), by and between RJR Enterprises, LLC, a Minnesota limited liability company (hereinafter "Landowner") and the City of Eagan, a Minnesota municipal corporation (hereinafter the "City"). (The Landowner and the City are collectively referred to as the "Parties"). WHEREAS, Landowner is the fee owner of property located in the City of Eagan, County of Dakota, State of Minnesota and legally described as Lot 1, Block 1, PROWIRE ADDITION (the "Property"); and WHEREAS, the City and Landowner's predecessor in title entered into that certain Connection Charge Agreement, dated June 28, 2002 and recorded with the Office of the Registrar of Titles on July 12, 2012 as Document No. 471376 (the "Connection Agreement"); and WHEREAS, the Parties desire to amend the Connection Agreement to modify connection charges that may be imposed upon the Property at the time of the expansion of any existing building or subdivision of the Property and to collect additional street assessments associated with any expansion or subdivision. NOW, THEREFORE, in consideration of the recitals set forth and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties do hereby agree as follows: 1. WAIVER OF OBJECTION. Landowner hereby waives its right to object to the collection of future connection charges which may be imposed by the City upon the conditions set forth above. 2. AMENDED CONNECTION CHARGES. In the event of expansion of the existing building on the Property or a subdivision of the Property, the following connection charges shall be imposed: RECEIVED DEC 1 fi 7013 AAitOi li,,av TAXATION & RECORDS Original Total frontage/area Previously Paid frontage/area Drainage & Utility Easement for pond frontage/area Remaining frontage/area to be charged with future development Water Lateral 1,095.95 feet - 712.07 feet - 290 feet = 93.88 feet Storm Sewer Lateral (15" pipe) 60 feet - 60 feet - 0 feet = 0 feet Water Availability 3.46 acres - 2.25 acres - 0.64 acres = 0.57 acres RECEIVED DEC 1 fi 7013 AAitOi li,,av TAXATION & RECORDS 3. STREET ASSESSMENT. In the event of expansion of the existing building on the Property or subdivision of the Property, the Landowner shall be responsible for deferred street assessment of $7,018.62. The street assessment shall bear interest at the rate of 3.5% per annum commencing on the Effective Date of this agreement. The street assessment was calculated with a credit of 209.95 lineal feet at $33.43 per front foot for a total of $7,018.62. 4. BINDING EFFECT. This Agreement binds and benefits the parties and their heirs, representatives, successors and assigns. 5. No OTHER AMENDMENTS. Except as hereinabove amended, all other terms of the Connection Agreement remain in full force and effect. LANDOWNER: RJR Enterprises, LLC, a Minnesota limited STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) limited c' pany Its: r' flM 1.q -t9 By: The foregoing instrument was acknowledged before me this 3YcQ day of kn ,194i^ , 2013, by —RoCIC 11 N CP) , the Ghi e -E 114a nG e r--- of RJR Enterprises, / LLC, a Minnesota limited liability company, on behalf ofihe limited liability company. ►- - LORI J. RANDEL '';�!"'''► NOTARY PUBLIC 1 MINNESOTA My Commission Expires Jan. 31, 2017 2 R .e�p Notary Public City of Eagan, a Minnesota municipal,Forporation • By: By: Mike Maguire Its: Mayor Christina M. Scipioni Its: City Clerk STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ZD day of faQikey', 2013, by Mike Maguire and Christina M. Scipioni, the Mayor and City Clerk of the City of Eagan, a Minnesota municipal corporation, on behalf of the municipal corporation. CAROL SUE TUMINI Nota OctAr3e ry Public -Minnesota Notary Public My Commission Expires Jan 31, 2016 THIS INSTRUMENT WAS DRAFTED BY: Dougherty, Molenda, Solfest, Hills & Bauer P.A. 7300 West 147th Street, Suite 600 Apple Valley, MN 55124 (952) 953-8840 (RBB: 206-33037) Receipt# 308179 TORRENS FEE 111111111111111111111111111111111111111111111 Return to: DOUGHERTY MOLENDA 7300 WEST 147TH STREET STE 600 APPLE VALLEY, MN 55124 $46.00 T726384 Recorded on: 12/17/2013 01:31:49PM By: CAC, Deputy Certificate #: 125400 Joel T. Beckman Registrar of Title Dakota County, MN DRAINAGE AND UTILITY EASEMENT This Drainage and Utility Easement ("Easement") is made this 3 day of .PJG- 1l3 2013, between RJR Enterprises, LLC, a Minnesota limited liability company, (hereinafter referred to as "Landowner"), and the City of Eagan, a municipal corporation, organized under the laws of the State of Minnesota, (hereinafter referred to as the "City"). WITNES SETH: That the Landowner, in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, does hereby grant and convey unto the City, its successors and assigns, a permanent drainage and utility easement, over, across and under the following described premises, situated within Dakota County, Minnesota, to -wit: The North 290.00 feet of Lot 1, Block 1, PROWIRE ADDITION, according to the recorded plat thereof, Dakota County, Minnesota. (the "Property"). See also Exhibit A attached hereto and incorporated herein. The grant of the foregoing permanent easement for drainage and utility purposes includes the right of the City, its contractors, agents and servants to enter upon the premises at all reasonable times to construct, reconstruct, inspect, repair and maintain pipes, conduits and mains; and the further right to remove trees, brush, undergrowth and other obstructions. After completion of such construction, maintenance, repair or removal, the City shall restore the premises to the condition in which it was found prior to the commencement of such actions, save only for the necessary removal of trees, brush, undergrowth and other obstructions. And the Landowner, its successors and assigns, does covenant with the City, its successors and assigns, that it is the Landowner of the premises aforesaid and has good right to grant and convey the easement herein to the City. IN TESTIMONY WHEREOF, the Landowner has caused this easement to be executed as of the day and year first above written. RJR Enterprises, LLC, a Minnesota limited limited company STATE OF MINNESOTA) )ss. COUNTY OFf The foregoing instrument was acknowledged before me this day of ceVy, bcr , 2013, by ROGI<y l3Qinch , the ( r of RJR Enterprises, LLC, a Minnesota limited liability company, on behalf olthe limited liability company. a w .w a_a a LORI J. RANDEL �,; , ,�, NOTARY PUBLIC ' MINNESOTA My Commission Expires Jan. 31, 2017 APPROVED AS TO FORM: City Attorney's Office Dated: f 2 --(fa 1 fy APPROVED AS TO CONTENT: Public Works4,eraLe„ epartment Dated: l2( -$i i3 2 Ad-LL. Notary Public THIS INSTRUMENT WAS DRAFTED BY: DOUGHERTY, MOLENDA, SOLFEST HILLS & BAUER P.A. 7300 West 147th Street, Suite 600 Apple Valley MN 55124 (952) 432-3136 (RBB: 206-33037/Easement No. 1279) 3 NORTH No Scale w 0 Proposed Drainage & ���/� Utility Easement )' PROPOSED DRAINAGE & UTILITY EASEMENT VACATION: A drainage and utility easement lying over, under and across the North 290.00 feet of Lot 1, Block 1, PROWIRE ADDITION, according to the recorded plat thereof, Dakota County, Minnesota G:\EASEMENTS\PROWIR E.dwg Engineering Division Co. Rd. 30 n Nicols Road Diffley Road Proposed Drainage & Utility Easement Lot 1, Block 1, Prowire Addition 11/22/201: Fig.1