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Home My WebLink About6.f. Amendment to Easement and Trunk Area Charge Credit Agreement, City Project 399 ��RQSE�✓�C�LI�T EXECUTIVE SUMMARY CITY COUNCIL City Council Meeting: May 15, 2012 AGENDA ITEM: Amendment to Easement and Trunk Area AGENDA SECTION: Charge Credit Agreement, City Project 399 Consent PREPARED BY: Andrew J. Brotzler, PE, Director of P AGENDA NO. Works / City Engineer �� ATTACHMENTS: Amendment to Easement and Trunk Area Charge Credit Agreement; original APPROVED BY: agreement RECOMMENDED ACTION: Motion to Approve the Amendment to Easement and Trunk Area Charge Credit Agreement and Authorize the Necessary Signatures. BACKGROUND: On September 30, 2009 the Easement and Trunk Area Charge Credit Agreement was executed by council as part of the Akron Avenue Improvement Project, City Project 399. The agreement provided a storm water trunk area charge credit to be given to the land owner upon future subdivision of the land, as compensation for the dedication of land for ponding purposes that was necessary for the Akron Avenue project. The subject property is now being developed by The Ryland Group, Inc. The landowner and developer have requested that in lieu of a credit in the amount of $51,360 for stormwater area charges with the development of the property, the stormwater area charges be assessed to The Ryland Group, Inc. and a cash payment be made to the landowner. The attached amendment to the original agreement as prepared by the City Attorney changes the language in paragraph 2.2 to reflect this request. SUMMARY Staff is recommending Council approval of the Amendment to Easement and Trunk Area C'liarge Credit Agreement. G:\ENGPROJ�399\20120515 CC Amendmeru to Ponding Agceemeca.docg AMENDMENT TO EASEMENT AND TRUNK AREA CHARGE CREDIT AGREEMENT This Agreement is made as of the day of , 2012 by and between the City of Rosemount, Minnesota, a Minnesota municipal corporation ("City"), and Wayne Groth and Sheila M. Groth, husband and wife, and Minnova Land, LLC, a Minnesota limited liability company (hereinafter collectively referred to as "Owner"). WHEREAS, the City and the Owner are parties to an Agreement entitled Easement and Trunk Area Charge Credit Agreement dated September 30, 2009 (the "Agreement"); and WHEREAS, the parties wish to amend the Agreement. NOW, THEREFORE, on the basis of the premises and mutual covenants and agreements contained in the Agreement and this Amendment, the Agreement is amended as follows: 1. Paragraph 2.2 of the Agreement is deleted and the following is substituted therefore: "As consideration for the grant of the easement in the form of Attachment Two, City agrees to compensate Owner in the total amount of Fifty- One Thousand Three Hundred Sixty Dollars ($51,360.00) payable in one or more payments, as received by the City from developers as stormwater trunk area charges due upon subdivision of the Property under City ordinances, regulations and policies. City will pay upon receipt to Owner the full amount of such stormwater truck area charges, as received, until the amount paid equals Fifty- One Thousand Three Hundred Sixty Dollars ($51,360.00)." 2. Except as modified herein, the Agreement remains in full force and effect. IN WITNESS WHEREOF, the parties hereto, by their authorized representatives, have hereunto set their hands as of the day and date first above written. CITY OF ROSEMOUNT By: William Droste, Mayor and by: Amy Domeier, Clerk 396873v1 CLL RS220-223 OWNER Wayne Groth Sheila M. Groth MINNOVA LAND, LLC By: Its: 396873v1 CLL RS220-223 � Parcel2A � 34-02200-030-75 EASEMENT AND TRUNK AREA CHARGE CREDIT AGREEMENT THIS AGREEMENT is made as of the 3° day of �� , 2009, by and between the City of Rosemount, Minnesota, a Minnesota municipal corporation ("City'� and Wayne Groth and Sheila. M. Groth, husband and wife, and Minnova Land, LLC a Minnesota limited liability (hereinafter collectively refened to as "Owner"). 1. BACKGROiJND 1.1. Owner is the owner of certain real property in the City legally described on Attachment One, which is attached hereto and hereby made a part of this Agreement (the "Subject Property"). 1.2. The City proposes to construct a public improvement project including reconstruction of Akron Avenue/County Road 73. The project includes street � reconstruction, curb, gutter, trail and sidewalks and related improvements (hereinafter referred to as "CP 399"). Owner has petitioned the City for construction of CP 399 and has agreed to grant easements needed for street purposes to the City in consideration of construction of CP 399 for the benefit of the Subject Property. 1.3. CP 399 also includes the construction of storm ponding and related piping and appurtenances for which the City will need easements for storm sewer and ponding purposes, including an easement over a part of the Subject Property. 1.4. The Subject Property is of sufficient size to be subdivided in accordance with the subdivision regulations and zoning code of the City. . Upon subdivision of the Subject Property, the Owner, or the Owner's successors in interest, will be required to pay storm water trunk area charges to the City which, under City rules, regulations and policies, are required to be paid at the time of subdivision of properry to fund storm sewer trunk improvements. 1.5. City and Owner have agreed that the value of the ponding, utility and drainage easement to be provided by Owner to City pursuant to this Agreement has a fair � market value of Fifty one thousand three hundred sixty dollars ($51,360.00). 1.6. Owner is willing to grant an easement over a part of the Subject Property in accordance with this Agreement for ponding, utility anrl drainage an the terms and conditions set forth in this Agreement. 1 � 1.7. Owner has agreed to accept a credit against future storm water trunk area chazges . in the amount specified in paragraph 1.5 as consideration for the ponding, utility and drainage easement granted pursuant to this Agreement. 2. AGREEMENT 2.1. The Owner agrees to execute and deliver to the City an easement for ponding, utility and drainage purposes over a part of the Subject Property in the form attached hereto as Attachment Two, which is hereby made a part of this Agreement. 2.2. As consideration for the grant of the easement in the form of Attachment Two, City agrees to give Owner a credit against future storm water tcvnk area charges that will be due at the time of subdivision of the Subject Property. At the time of the first subdivision of any part of the Subject Property, storm water trunk area charges due under City ordinances, regulations, and policies, will be reduced by the amount specified in paragraph 1.5 as the fair market value of the easement. � 3. MISCELLANEOUS 3.1. This Agreement is contingent on construction by the City of CP 399. In the event the City has not commenced construction of roadway, hail, utility, drainage and ponding improvements as a part of CP 399 prior to December 31, 2011, the easement granted pursuant to this Agreement sha11 automatically terminate and, at the request of the Owner of the Subject Property, or the Owner's successors and assigns, the City will execute and record such releases or other instruments as are necessary to extinguish its rights under the easement. 3.2. The obligations of the City under paragraphs 2.2 and 3.1 will survive transfer and deiivery of the easement and bind and obligaxe the City until the ternis of . paragraphs 2.2. and 3.1 have been satisfied. . IN WITNESS WHEREOF, the parties hereto, by their authorized representatives, have hereunto set their hands as of the day and date first above written. CITY OF ROSEMOUNT By: . Williazn Droste, Mayor And by: Amy omeier, Clerk � a - OWNER Way Groth L �;� � � Sheila M. Groth MINNOVA LAND, LLC , By: 4 Its: � N w �/' k a.t, � f _ - — 3