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1319 Raspberry Lane - Assessment Deferral Agreement SEVERSON, SHELDON, DOUGHERTY & MOLENDA, P.A. SUITE 600 ,t 7300 WEST 147TH STREET APPLE VALLEY, MINNESOTA 55124-7580 (952) 432-3136 TELEFAX NUMBER (952) 432-3780 E-MAIL bauerr@seversonsheldon.com TO: Russ Matthys, City Engineer FROM: Robert B. Bauer, City Attorney/ DATE: July 2, 2009 RE: Asses eferral Agreements Pr ject 905R S l r > e ` o. 206-28146 Enclosed for the City's records, please find the following original Assessment Deferral Agreements regarding the above-referenced matter: 1. Wayne M. Schwanz and Deborah J. Schwanz, dated May 20, 2009 and recorded with the Dakota County Recorder on June 23, 2009 as Document No. 2666193; 2. Charles Borash and Linda Borash, dated May 21, 2009 and recorded with the Dakota County Recorder on June 23, 2009 as Document No. 2666194; 3. Wayne M. Schwanz and Deborah J. Schwan, dated June 2, 2009 and recorded with the Dakota County Recorder on June 23, 2009 as Document No. 2666195; and 4. Charles Borash and Linda Borash, dated June 3, 2009 and recorded with the Dakota County Recorder on June 23, 2009 as Document No. 2666196. Receipt#: 52031 2666194 ABSTRACT FEE $46.00 Recorded on: 6/23/2009 09:00:03AM By: TMC, Deputy Return to: SEVERSON SHELDON DOUGHERTY ETAL 7300 WEST 147TH STREET STE 600 Joel T. Beckman County Recorder APPLE VALLEY, MN 55124 Dakota County, MN ASSESSMENT DEFERRAL AGREEMENT This Assessment Deferral Agreement ("Agreement") is made this 2k f day of ijl 2009, by and between Charles Borash and Linda Borash, husband and wife, (hereinafter "Landowner") and the CITY OF EAGAN, a Minnesota municipal corporation (hereinafter "City"). (Landowner and City are hereinafter 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: The South 100 feet of Lot Three (3); and all of Lot Four (4), Block Three (3), Dodd View Addition. (the "Property"). WHEREAS, as part of City Public Improvement Project 905R (hereinafter the "Project"), the City assessed the Property for storm sewer trunk improvements in the amount of Two Thousand Five Hundred Eighty-five and 72/100 Dollars ($2,585.72) (the "Assessment"). WHEREAS, the Landowner has requested that the City defer the Assessment until the Property is sold, subdivided or developed; and WHEREAS, the City is willing to defer collection of the Assessment upon the terms and conditions contained herein. Page 2/ASSESSMENT DEFERRAL AGREEMENT WHEREAS, THEREFORE, in consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby agree as follows: 1 DEFERRED ASSESSMENT. Pursuant to Minn. Stat. § 429.061, subd. 2, the Parties agree that the payment of the first installment of the Assessment, including interest thereon, shall be deferred until the Property is sold, subdivided, platted or otherwise developed, whichever occurs first, at which time the first installment of the Assessment shall become due and payable. The Assessment shall bear interest at the rate of six percent (6%) per annum as set forth in the assessment roll for the Project. When the first installment of the Assessment becomes due and payable, interest accrued on the Assessment from April 21, 2009, to December 31 of the year that the first installment of the Assessment becomes due and payable shall be added to the original principal amount of the assessment, and the totals of those amounts shall become the "Principal Assessment Amounts Payable." The Principal Assessment Amounts Payable shall be divided for payment into fifteen equal annual installments, or such lesser number of equal annual installments as is necessary for the last installment thereof to be payable not more than 30 years after the levy of the Assessment. The first installment of the Principal Assessment Amounts Payable, plus one year interest thereon until December 31 of the year in which the first installment is to be paid, shall be included in the first tax rolls completed after it becomes due and payable, and shall be paid in the same year as the taxes contained therein, and to each subsequent installment shall be added interest for one year on the remaining unpaid installments which shall be paid in a like manner. The Parties agree that, notwithstanding anything in this Agreement to the contrary, the Assessment and all interest thereon must be paid in full no later than December 31, 2039. In the event the Assessment has not been paid prior to December 31, 2019, the Principal Assessment Amounts Payable shall be payable in 15 annual installments commencing January 1, 2020, together with interest thereon at the rate of six percent (6%) per annum. 2. WAIVER. The Landowner hereby accepts the Assessment and hereby waives the right to object or appeal the Assessment pursuant to MINN. STAT. § 429.081 and further waives notice of hearing on this Agreement. Page 3/ASSESSMENT DEFERRAL AGREEMENT 3. BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of the parties' heirs, successors and assigns and shall run with the land. , Charles Borash' Linda Borash CITY OF EAGAN: By: Mike Maguire Its: Mayor By: ~~9- - Maria Petersen Its: Clerk STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of 'yVl__ , 2009, by Charles Borash and Linda Borash, husband and wife. .e, _NDA MARIE DRALLE v Va i TARY PUBLIC - MINNESOTA Notary Public Jay Cornmission Expires Jan. 31, 2010 Page 4/ASSESSMENT DEFERRAL AGREEMENT STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this f s f day of 2009, by Mike Maguire and Maria Petersen, the Mayor and Clerk of the City of t, a Minnesota municipal corporation, on behalf of the municipal corporation. 11-4 10-1)iJt4l Not P blic APPROVED AS TO FORM: C JUDY M. JE 7NVJNS ;Y PUBLIC • City Attorney's Office y , ssion Expin 10 Dated: Public Works Departnt Dated: THIS INSTRUMENT WAS DRAFTED BY: Severson, Sheldon, Dougherty & Molenda, P.A. 7300 West 147th Street, Suite 600 Apple Valley, MN 55124 (952) 432-3136 (RBB: 206-28146) John Gorder From: Tom Colbert Sent: Wednesday, May 06, 2009 10:25 AM To: John Gorder; Russ Matthys; Mike Dougherty Cc: Ryan Stevens; Gene VanOverbeke Subject: Proj 951 (So. Dodd Rd) & 952 (Lone Oak Rd) & 905R (LHRP), 5-05-09 Council action summary Importance: High Before I forget (which I would like to do sooner than later), I thought it would be helpful to forward to you the various actions and directives from the public hearings last evening. Proi 952 (Lone Oak Rd & Boulder Lakes) Based on a request from Boulder Lakes Matt Miller (and an advisory by the City Attorney to include all similar zoned property), all Commercial property (i.e. non agriculture or residential use) proposed to be assessed will have their assessment spread over 20 years at 6.0%. There was NO deferment option provided to them...just a longer spread. V • While no Council action was deemed necessary, there was no objection to Matt's request to re-spread the turn lane related assessments to whatever additional lots Matt selects. This will be accomplished via an amendment (or new? Per City Attorney's direction) Waiver of Assessment Agreement. The assessment can be allocated in any desired proportion to any or all lots under control of the respective legal signatories (this may require an ay, 4`1 updated title search at developer's cost. CA to guide this process and agreement preparation/recording). ce • All Ag/Res properties (i.e. non-C/I) are to be offered a deferment of 10 years at 6.0% with a subsequent spread of 15 years @ 6.0%. Terms of the deferment for when the assessments will become due and payable are to include sale and/or development of the property, but NOT connection. In other words, they can connect and still keep the terms of the deferment in place (but must pay all related connections charges....WAC, permit fees, etc.). This is NOT to be considered as a precedent or policy change, but rather consideration for their Special Area (SA) "holding pattern" zoning designation. •!o aotq - i5--ie-- P--/o °Ck L~~~`• Written requests for a deferment must be received by May 22 and subsequent deferment agreements must be fr.t' executed by June 4, 2009. This will require an informational notice to this effect be sent out in the next week. (tL-~7.,ar- GYOU-fie i~T~ 7lv rf +~z.j ~lkfvrr~,an~ )nil.ly+11117JS Proi 951 (So Dodd Rd) • The interest rate for the adopted Final Assessment Role was reduced to 6.0%, the same as Proj 952. All properties not covered by a development agreement waiver are to be offered a deferment of 10 years at the new 6.0% rate with a subsequent spread of 15 years @ 6.0%. Terms of the deferment for when the assessments will become due and payable are to include sale, development and/or connection. • Written requests for a deferment must be received by May 22 and subsequent deferment agreements must be executed by June e 4,'~c"~ c, 2009. This will require an informationalnotice to this effect be sent out in the next week. ~np7s il - M42 0-l rr•CJ'ri'- te., s (/.C.T'"'~",.~.?-s'I C T x`r'1 a2s'17~. 6 Proi 905R (Lebanon Hills/Long Acres) / J • Since this project was originally approved in 2007 within 2 months of Projects 951 & 952 (above) and their Final Assessment hearings were only 2 weeks apart, the Council agreed that the assessment and deferment interest rate should be the same for all 3. Subsequently, they took special action to reduce the interest rate from 6.5% to 6.0% and directed that a letter be sent to all property owners informing them of the rate reduction (in case it might make a difference in their desire to request a deferment). "fe M47 V~ S~rv ~ r >Lr , t ~fi rfn Please let me know if you have any questions and then place a copy of these details in the appropriate files for future reference. MGD....let me know if I've missed or misinterpreted anything. 1 J Zoe"" i r SEVERSON, SHELDON, DOUGHERTY & MOLENDA, P.A. E S SUITE 600 7300 WEST 147TH STREET APPLE VALLEY, MINNESOTA 55124-7580 a' s (952) 432-3136 TELEFAX NUMBER (952) 432-3780 E-MAIL bauerr@seversonsheldon.com TO: Russ Matthys, City Engineer FROM: Robert B. Bauer, City Attorneyy DATE: July 2, 2009 RE: Assessment Deferral Agreements Project 905R , 9S / Our File No. 206-28146 Enclosed for the City's records, please find the following original Assessment Deferral Agreements regarding the above-referenced matter: 1. Wayne M. Schwarz and Deborah J. Schwarz, dated May 20, 2009 and recorded with the Dakota County Recorder on June 23, 2009 as Document No.`2666193; 2. Charles Borah and''Linda Borash, dated May 21, 2009 and recorded with the Dakota County Recorder on June 23, 2009 as Document No. 26661/; 3. Wayne M. Schwarz and Deborah J. Schwanz, dated June 2, 2009 and recorded with the Dakota County Recorder on June 23, 2009 as Document No. 2666195; and 4 Charles Borash and Linda Borash, dated June 3, 2009 and recorded with the Dakota County Recorder on June 23, 2009 as Document No. 2666196. G= Receipt#: 52031 2666196 ABSTRACT FEE $46.00 111111111 Recorded on: 6/23/2009 09:00:05AM By: TMC, Deputy Return to: SEVERSON SHELDON DOUGHERTY ETAL 7300 WEST 147TH STREET STE 600 Joel T. Beckman County Recorder APPLE VALLEY, MN 55124 Dakota County, MN ASSESSMENT DEFERRAL AGREEMENT This Assessment Deferral Agreement ("Agreement") is made this day of Juti~ , 2009, by and between Charles Borash and Linda Borash, husband and wife (hereinafter "Landowner") and the CITY OF EAGAN, a Minnesota municipal corporation (hereinafter "City"). (Landowner and City are hereinafter 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: The South 100 feet of Lot Three (3); and all of Lot Four (4), Block Three (3), Dodd View Addition, according to the recorded plat thereof. (the "Property"). WHEREAS, as part of City Public Improvement Project 951 (hereinafter the "Project"), the City assessed the Property for the following improvements: Trunk Area Sanitary Sewer $1,327.20 Lateral Sanitary Sewer $2,830.00 TOTAL $4,157.20 (the "Assessment"). WHEREAS, the Landowner has requested that the City defer the Assessment until the Property is sold, subdivided or developed; and Page 2/ASSESSMENT DEFERRAL AGREEMENT WHEREAS, the City is willing to defer collection of the Assessment upon the terms and conditions contained herein. NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby agree as follows: 1 DEFERRED ASSESSMENT. Pursuant to Minn. Stat. § 429.061, subd. 2, the Parties agree that the payment of the first installment of the Assessment, including interest thereon, shall be deferred until the Property is sold, subdivided, platted or otherwise developed, whichever occurs first, at which time the first installment of the Assessment shall become due and payable. The Assessment shall bear interest at the rate of six percent (6%) per annum as set forth in the assessment roll for the Project. When the first installment of the Assessment becomes due and payable, interest accrued on the Assessment from May 5, 2009, to December 31 of the year that the first installment of the Assessment becomes due and payable shall be added to the original principal amount of the assessment, and the totals of those amounts shall become the "Principal Assessment Amounts Payable." The Principal Assessment Amounts Payable shall be divided for payment into fifteen equal annual installments, or such lesser number of equal annual installments as is necessary for the last installment thereof to be payable not more than 30 years after the levy of the Assessment. The first installment of the Principal Assessment Amounts Payable, plus one year interest thereon until December 31 of the year in which the first installment is to be paid, shall be included in the first tax rolls completed after it becomes due and payable, and shall be paid in the same year as the taxes contained therein, and to each subsequent installment shall be added interest for one year on the remaining unpaid installments which shall be paid in a like manner. The Parties agree that, notwithstanding anything in this Agreement to the contrary, the Assessment and all interest thereon must be paid in full no later than December 31, 2039. In the event the Assessment has not been paid prior to December 31, 2019, the Principal Assessment Amounts Payable shall be payable in 15 annual installments commencing January 1, 2020, together with interest thereon at the rate of six percent (6%) per annum. Page 3/ASSESSMENT DEFERRAL AGREEMENT 2. WAiyER. The Landowner hereby accepts the Assessment and hereby waives the right to object or appeal the Assessment pursuant to MmN. STAT. § 429.081 and further waives notice of hearing on this Agreement. 3. BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of the parties' heirs, successors and assigns and shall run with the land. (q" j- Charles Borash da orash CITY OF EAGAN: 44t6 By: Mike Maguire Its: Mayor By: _ . vim A y-~ Maria Petersen Its: Clerk STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of 2009, by Charles Borash and Linda Borash, husband and wife. `yk LINDA MARIE NOTANotary Public My Co Page 4/ASSESSMENT DEFERRAL AGREEMENT STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) ,-The foregoing instrument was acknowledged before me this day of -3 2009, by Mike Maguire and Maria Petersen, the Mayor and Clerk of the City of Eagan, a Minnesota municipal corporation, on behalf of the municipal corporation. JUDY M. JE ZMINNIESOTA NOTARY PUBLIC - My Commission Expin 0 Lary Pu lic APPR OVED AS TO FORM: City, ttorney's bffic~,-z," Dad: Public Works Dep Dated: Cp -S -o9 THIS INSTRUMENT WAS DRAFTED BY: Severson, Sheldon, Dougherty & Molenda, P.A. 7300 West 147th Street, Suite 600 Apple Valley, MN 55124 (952) 432-3136 (RBB: 206-26262) John Gorder From: Tom Colbert Sent: Wednesday, May 06, 2009 10:25 AM To: John Gorder; Russ Matthys; Mike Dougherty Cc: Ryan Stevens; Gene VanOverbeke Subject: Proj 951 (So. Dodd Rd) & 952 (Lone Oak Rd) & 905R (LHRP), 5-05-09 Council action summary Importance: High Before I forget (which I would like to do sooner than later), I thought it would be helpful to forward to you the various actions and directives from the public hearings last evening. Proi 952 (Lone Oak Rd & Boulder Lakes) • Based on a request from Boulder Lakes Matt Miller (and an advisory by the City Attorney to include all similar zoned property), all Commercial property (i.e. non agriculture or residential use) proposed to be assessed will Iu'~ 1 have their assessment spread over 20 years at 6.0%. There was NO deferment option provided to them...just a a ya,, longer spread. K • While no Council action was deemed necessary, there was no objection to Matt's request to re-spread the turn 'V lane related assessments to whatever additional lots Matt selects. This will be accomplished via an amendment (or new? Per City Attorney's direction) Waiver of Assessment Agreement. The assessment can be allocated in any desired proportion to any or all lots under control of the respective legal signatories (this may require an updated title search at developer's cost. CA to guide this process and agreement preparation/recording). C All Ag/Res properties (i.e. non-C/I) are to be offered a deferment of 10 years at 6.0% with a subsequent spread of 15 years @ 6.0%. Terms of the deferment for when the assessments will become due and payable are to include sale and/or development of the property, but NOT connection. In other words, they can connect and still keep the terms of the deferment in place (but must pay all related connections charges....WAC, permit fees, etc.). This is NOT to be considered as a precedent or policy change, but rather consideration for their Special Area (SA) "holding pattern" zoning designation. 27- 2o1'1 i -ye' j -"/6,(-k Le~~• Written requests for a deferment must be received by May 22 and subsequent deferment agreements must be ,,;t,) executed by June 4, 2009. This will require an informational notice to this effect be sent out in the next week. la V11- - Gruah.. J F 1 1.5 Ls/' C f o -•n o~, ~ rf5 Proi 951 (So Dodd Rd) • The interest rate for the adopted Final Assessment Role was reduced to 6.0%, the same as Proj 952. All properties not covered by a development agreement waiver are to be offered a deferment of 10 years at the new 6.0% rate with a subsequent spread of 15 years @ 6.0%. Terms of the deferment for when the assessments will become due and payable are to include sale, development and/or connection. • Written requests for a deferment must be received by May 22 and subsequent deferment agreements must be `7``lytt5 executed by June 4,2009.. This will require an informational notice to this effect be sent out in the next week. 14422 OF te S ,/'L~''^•'.r~.~14-,~'l.. c`er~I^+e t-1 s2,t 7~j' Pro' 905R (Lebanon Hills/Long Acres) ! • Since this project was originally approved in 2007 within 2 months of Projects 951 & 952 (above) and their Final F;,{10 Assessment hearings were only 2 weeks apart, the Council agreed that the assessment and deferment interest rate should be the same for all 3. Subsequently, they took special action to reduce the interest rate from 6.5% to 6.0% and directed that a letter be sent to all property owners informing them of the rate reduction (in case it might make a.difference in their desire to request a deferment). r/- cx~pu,.,~ Uy~7c Please let me know if you have any questions and then place a copy of these details in the appropriate files for future reference. MGD....let me know if I've missed or misinterpreted anything. 1