HomeMy WebLinkAbout6.i. Rosemount Distribution, LLC (Yocum Oil) Roadway Agreementl ROSEMOUNT EXECUTIVE SUMMARY
CITY COUNCIL
City Council Meeting Date: September 20, 2011
AGENDA ITEM: Rosemount Distribution, LLC (Yocum Oil)
AGENDA SECTION:
Roadway Agreement
Concept
PREPARED BY: Eric Zweber, Senior Planner
AGENDA NO.
ATTACHMENTS: Site Map; Roadway Agreement;
APPROVED BY:
Rosemount Clean Energies Press Release
Motion to approve the Roadway Agreement with Rosemount Distribution, LLC and
authorize the Mayor to enter into the Agreement.
ISSUE
Yocum Oil has a purchase agreement with CNR (Continental Nitrogen) to purchase 55 acres, in the
south section of the site. Yocum's first venture on the property is to distribute diesel and biodiesel
through their company Rosemount Distribution, LLC (also known as Rosemount Clean Energies).
Rosemount Clean Energies will use three of the existing tanks on the site with additional investments
in new tuck loading facilities and electrical equipment. This facility will occupy about 8 acres of the
total 55 acre site. To serve the new loading facilities and provide better circulation, Rosemount Clean
Energies will construct a new roadway on the west, south, and east sides of the three existing tanks.
Yocum Oil is requesting an agreement that this new roadway not be paved until September 1, 2014.
The major reason for this request is because Yocum is unsure how they will use the remaining 47 acres
of property at this time and the future uses may require a change to the roadway installation for
Rosemount Clean Energies. Staff is supportive of this request with the conditions included in the
agreement, which has been reviewed by the City Attorney.
First, the agreement requires a letter of credit for the paving of the roadway so that if Rosemount
Energies does not improve the roadway by September 1, 2014, the City may redeem the letter of credit
and improve the roadway to the City Code requirements. Second, Yocum is required to submit a
concept plan showing the future site development by September 1, 2013 so that staff can discuss the
use of the roadway on the site and ensure that roadway agreement can be fulfilled by September 1,
2014. Third, if Yocum were to improve additional phases of the property through a site plan or
planned unit development (PUD), then Yocum would be required to bring the installed roadway into
compliance with the City Code within 180 days of site plan or PUD approval. With these conditions,
staff is supportive of the roadway agreement that would give Yocum approximately three years to
improve the roadway installed this fall or replace it with a roadway in a new location that meets City
code requirements.
RECOMMENDATION
Staff recommends approval of the Roadway agreement and authorization for the Mayor to sign the
agreement.
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ROADWAY IMPROVEMENT AGREEMENT
THIS AGREEMENT is made between the City of Rosemount ( "City ") and Rosemount
Distribution, LLC ( "RD ") as of the day of , 2011.
RECITALS
WHEREAS, RD expects to acquire certain real property in the City of Rosemount legally
described on attached Exhibit A ( "Property "); and
WHEREAS, RD expects to install a new road on the Property and has applied for a
grading permit and site plan approval (the "Permits "); and
WHEREAS, RD expects to redevelop the Property in several phases, and the final
location of the road may be different than the location for which RD has requested permits; and
WHEREAS, RD has requested permission to construct the road as a temporary gravel
road ( "Temporary Road ") rather than a bituminous road with concrete curb and gutter as
required by City Code, and to construct a road that conforms to City Code ( "Final Road ") after
the location of the road is determined during design of later phases of the redevelopment, so as to
avoid the unnecessary expense that would be incurred in removing a bituminous road if the Final
Road location is different than the location currently proposed by RD for the Temporary Road;
and
WHEREAS, the City is willing to allow the road to be constructed as a temporary gravel
road on the terms and conditions set forth in this Agreement and has required the execution of
this Agreement as a condition of approval of the Permits.
NOW, THEREFORE, for good and valuable consideration, the adequacy and receipt of
which is hereby acknowledged, the parties agree as follows:
1. Applicant may construct a Temporary Road on the Property in the location shown, and
meeting the specifications stated, on attached Exhibit B.
2. Construction of the Temporary Road may not be commenced until RD has provided to
the City a cash deposit or letter of credit in the amount of Ninety -Nine Thousand Dollars
($99,000) to secure faithful performance of its obligation under paragraph 5 of this
Agreement. A cash deposit will be held by the City, without interest. The letter of credit
must be from a Minnesota bank and in a form approved by the City Attorney. The
deposit or letter of credit will be used for the purpose of satisfying the obligation of RD
under paragraph 5 and for no other purpose. Any unused security will be returned by the
City to RD upon completion of the Final Road in accordance with this Agreement.
391942v 1 CLL RS215 -4
3. By no later than September 1, 2013, RD shall submit a site plan or concept plan to the
City for the Final Road.
4. Should RD submit for and receive either site plan or planned unit development (PUD)
approval from the City prior to March 1, 2014 that includes completion of the Final
Road, RD will improve the new road to meet the City Code within 180 days of the City
approval.
5. By no later than September 1, 2014, RD shall complete the Final Road and remove any
part of the Temporary Road that is not included in the Final Road.
6. In the event RD fails to complete such improvements by September 1, 2014, the City
may draw on and use security provided under paragraph 2 to construct a Final Road
meeting the requirements of City Code in the location shown on Exhibit B and the City is
hereby given license to enter the Property to complete the construction of the Final Road.
IN WITNESS WHEROF, the parties have executed this Agreement as of the day and
year first above written.
CITY OF ROSEMOUNT ROSEMOUNT DISTRIBUTION, LLC
By: By:
Its: Its:
3919420 CLL RS215 -4 2
EXHIBIT A
Legal Description of Property
Real property in Dakota County, Minnesota, legally described as follows:
That part of the North half of Section 19, Township 115, Range 18, and the South
half of Section 18, Township 115, Range 18 all in Dakota County, Minnesota,
described as follows: Commencing at the Northwest corner of said Section 19;
thence on an assumed bearing of South 89 degrees 54 minutes 49 seconds East
along the North line of said Section 19, a distance of 200.00 feet to the East
highway right -of -way line of State Highway No. 55 (nka Hwy. 52); thence South
00 degrees 40 minutes 42 seconds West a distance of 59.00 feet thence South 89
degrees 54 minutes 49 seconds East along a line parallel with the North line of
said Section 19, a distance of 160.00 feet to the point of beginning; thence deflect
left 90 degrees 00 minutes 00 seconds a distance of 200.00 feet; thence west and
parallel with the North line of said Section 19, a distance of 131.27 feet to a point
22 feet Easterly of the highway right -of -way; thence North 02 degrees 34 minutes
25 seconds East along a line parallel to the East highway right -of -way line, a
distance of 410.90 feet; thence deflect right 30 degrees 09 minutes 18 seconds a
distance of 36.77 feet; thence deflect right 29 degrees 37 minutes 00 seconds a
distance of 102.00 feet; thence deflect right 90 degrees 00 minutes 00 seconds a
distance of 444.16 feet; thence deflect left 35 degrees 47 minutes 26 seconds a
distance of 1105.15 feet; thence deflect right 90 degrees 00 minutes 00 seconds a
distance of 456.01 feet; thence deflect left 90 degrees 00 minutes 00 seconds a
distance of 684.26 feet; thence deflect left 26 degrees 28 minutes 54 seconds a
distance of 425.13 feet to the North -South center line of said Section 19; thence
South 00 degrees 09 minutes 07 seconds West, along said North -South center line
of said Section 19, a distance of 352.65 feet to the Southeast corner of said
Section 19; thence North 89 degrees 51 minutes 13 seconds West along the south
line of said Section 19 a distance 2199.39 feet to a point being 188.38 feet east of
the Southwest comer of said Section 19 and said east highway right -of -way line;
thence North 00 degrees 40 minutes 42 seconds East along said east highway
right -of -way line, a distance of 1261.56 feet; thence South 89 degrees 54 minutes
50 second East 160.00 feet to the point of beginning.
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Rosemont Clean Energies — Press Release
New Minnesota Clean Energy Company, Rosemount Clean Energies,
Refuels Midwest Bio Market
(St. Paul, MN, August 17, 2011) A 50 -acre industrial site in a St. Paul, Minnesota
suburb has been redeveloped into a large terminal facility with capabilities to
provide the region with enhanced clean energy products. The only of its kind and
scale in the Upper Midwest, Rosemount Clean Energies is on the forefront of
clean, renewable energy with its superior ability to solidify supply and offer
biofuel injection blending, providing local marketers and end users increased
savings and flexibility to customize products. The green - built, non -waste
generating terminal site, which has a large -scale rail spur and nearly half a
million barrels of storage capacity, has the flexibility to receive and ship products
through various mediums — including rail cars, trucks, tanks and pipeline.
Energy demands of the future require that current technologies are maximized
and new energy alternatives and opportunities are explored. The Rosemount
Clean Energies terminal meets the need for exploring clean energy sources,
particularly biofuels, and will pass these benefits on to energy marketers in
Minnesota and surrounding states. "Biofuels are here to stay," states Tim
Yocum, one of the principles and Chief Manager of Rosemount Clean Energies.
"Canada just announced a 2% biodiesel requirement. Minnesota is going to 10%
next spring. This new terminal will allow greater distribution of biofuels where
crops are grown locally and biofuels are produced locally. Combine this with our
local refineries' ability to produce ultra- low sulfur diesel from North Dakota and
Canadian crude, and we have opened a huge channel for energy independence
through local supply."
Beyond improved biodiesel and diesel capabilities that will change the energy
game at the regional level, Rosemount Clean Energies offers another advantage
the local market previously lacked: An efficient mechanism to actually test
biodiesel in the market place. Yocum explains, "Initially, the industry struggled
with the roll -out of biodiesel. Rosemount Clean Energies' scale and ability to
customize products through injection blending ensures greater accuracy and a
consistent product that takes the reliability question of fuel out of the equation.
"Now," assures Yocum, "we can perfect biodiesel and additive blending in a
highly efficient manner, collaborate with all parties to find an efficient medium to
deliver new products to the marketplace, and offer marketers and energy users a
range of high - performance products specific to their applications and market
demands."
Most Midwest marketers are not only faced with the known challenges related to
biodiesel and the need for more reliable, custom products, but are also
confronted with daily price volatility. The enhanced capabilities of Rosemount
Clean Energies will allow marketers to make larger short-term deals that will
ultimately help their bottom line - welcome news for any smaller petroleum
marketer in the region. In addition to the distribution of biodiesel and ultra -low
sulfur diesel fuel, capabilities of this clean energy facility will include the
transloading, storage and distribution of ethanol, waste oil recycling, asphalt, #6
oil, propane, diesel exhaust fluid (DEF), compressed natural gas (CNG) and
liquefied natural gas (LNG).
While "biofuels" may be the current industry buzz word and the predominant
focus of Rosemount Clean Energies, the clean energy company is poised and
committed to exploring alternatives that extend beyond what the immediate
market demands. "We'll continue to collaborate with producers, end - users,
government agencies, and environmental groups to actualize the idea that
biofuels are a viable, sustainable supplement to petroleum fuels," states Yocum.
"We'll also work closely with our partners, including COMMANDIabs, to test
newer clean energy products that enter the marketplace. We aim to be leaders
in clean energy and are always looking ahead to what can most responsibly and
efficiently move our market forward."
Media Contact Information:
Rosemount Clean Energies
media ,rcleanenergies.com
Rosemount Clean Energies is a new terminal site located near Saint Paul, Minnesota dedicated
to exploring and providing regional marketers clean, renewable, environmentally - responsible
energy solutions. Rosemount Clean Energies' clean energy facility contains more than half a
million barrels of storage capacity and resources to receive and ship petroleum - related products
by rail cars, trucks, tanks and pipeline. Rosemount Clean Energies serves large and small
petroleum customers through its testing and production capabilities that include biodiesel fuel
injection blending and the distribution of normal refined diesel, ethanol, waste oil recycling,
asphalt, #6 oil, propane, diesel exhaust fluid, compressed natural gas and liquefied natural gas.
www.rcleanenergies.com
COMMANDlabs is a leading fuel testing laboratory in St. Paul, Minnesota that rigorously tests and
develops high performance fuel additive formulations through extensive research and proprietary,
state -of- the -art technology. COMMANDlabs specializes in analyzing fuels and troubleshooting
fuel - related issues - providing timely, accurate results and solutions to issues related to ULSD,
biodiesel and gasoline. www.commandlabs.net