600 Lone Oak Rd - Assessment Deferral Agreements
SEVERSON, SHELDON,
DOUGHERTY & MOLENDA, P.A.
SUITE 600
7300 WEST 147TH STREET
APPLE VALLEY, MINNESOTA 55124-7580
(952) 432-3136
TELEFAX NUMBER (952) 432-3780
E-MAIL bauerr@seversonsheldon.com
TO: John Gorder, Assistant City Engineer
FROM: Robert B. Bauer, City Attorney
DATE: July 2, 2009
RE: Assessment Deferral Agreements
Project 952
Our File No. 206-26644
John,
Enclosed for the City's records, please find the following original Assessment Deferral
Agreements regarding the above-referenced matter:
1. Jeremy J. Illg and Kelly I11g, dated June 4, 2009 and recorded with the
Dakota County Recorder on June 24, 2009 as Document No. 2666513;
2. John O. Nelson and Kim Renae Nelson, dated June 3, 2009 and recorded
with the Dakota County Recorder on June 24, 2009 as Document No.
2666514;
3. Dale D. Heacock and Heidi L. Heacock, dated June 2, 2009 and recorded
with the Dakota County Recorder on June 24, 2009 as Document No.
..,..,2666515; and
4. Kenneth W. West Jr. and Jill Wiedemann West, dated May 28, 2009 and
recorded with the Dakota County Recorder on June 24, 2009 as
Document No. 2666516.
Receipt#: 52217 2666516
ABSTRACT FEE $46.00
Recorded on: 6/24/2009 09:00:04AM
By: DDW, 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 o~k{ V day of
2009, by and between Kenneth W. West Jr. and Jill Wiedemann West,
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
N
the "Parties").
N WHEREAS, Landowner is the fee owner of property located in the City of Eagan,
U a
County of Dakota, State of Minnesota and legally described as:
The North 472.8 feet of Lot 2, Auditor's Subdivision No. 38, Eagan, except the West 376.65 feet
t thereof and except the East 435.6 feet thereof and except the North 236.4 feet of the West 653.65
Q feet of Lot 2, Auditor's Subdivision No. 38, Eagan, except the West 376.65 feet thereof,
according to the plat thereof now on file and of record in the Office of the County Recorder
u within and for Dakota County, Minnesota.
(the "Property").
L WHEREAS, as part of City Public Improvement Project 952 (hereinafter the "Project"),
the City assessed the Property for the following improvements:
Lateral Water Main $6,778.20
Trunk Area Water Main $1,200.00
TOTAL $7,978.20
(the "Assessment").
Page 2/ASSESSMENT DEFERRAL AGREEMENT
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.
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,
Page 3/ASSESSMENT DEFERRAL AGREEMENT
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.
3. BANDING 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.
enneth W. West Jr. Jill iedemann West
CITY OF EAGAN:
By:
Mike Maguire
Its: Mayor
By: V)~It~ W-4A-___,
Maria Petersen
Its: Clerk
STATE OF MR-INESOTA)
)ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this 26 day of
2009, by Kenneth W. West Jr. and Jill Wiedemann West, husband and wife.
al,~~ ~srN~ Not Public
O JOHN P. GORDER
IM/PI a . N 'A
~ pp J a.31.2D12
Page 4/ASSESSMENT DEFERRAL AGREEMENT
STATE OF MINNESOTA)
)ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this o?L day of
lotl~ 2009, by Mike Maguire and Maria Petersen, the Mayor and Clerk of the City
of Eaga , a Minnesota municipal corporation, on behalf of the municipal corporation.
oaryP li
APPROVED AS TO FORM:
JUDY M. JE NKINS
`i SRY PUBLIC- MINNESOTA
t pir es Jan. 31, 2D10
Attomby
ated:
,Public Works Department
Dated: -2f-o'l
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: 206-26644)
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.
Prom 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
Ju~ have their assessment spread over 20 years at 6.0%. There was NO deferment option provided to them...just a
longer spread.
'K 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
-r11 i updated title search at developer's cost. CA to guide this process and agreement preparation/recording).
~i • 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. p k, .
~Qti~• Written requests for a deferment must be received by May 22 and subsequent deferment agreements must be
executed by June 4, 2009. This will require an informational notice to this effect be sent out in the next week.
i
?r
Prom 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.
)y Written requests for a deferment must be received by May 22 and subsequent deferment agreements must be
jappl executed by June 4, 2009. This will require an informational notice to this effect be sent out in the next week.
111 o C, rv eve' C3 , ,tea i f r r+~ s-~~,7~5
Proj 905R (Lebanon Hills/Long Acres)
• 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). 11Y,12- 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