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Home My WebLink About6.g. Flint Hills Resources Roadway Agreement at the former Rosemount Clean Energies (Yocum Oil) Site �tROSEMO EXECUTIVE SUMMARY CITY COUNCIL City Council Meeting Date: September 2, 2014 AGENDA ITEM: Flint Hills Resources Roadway Agreement AGENDA SECTION: at the former Rosemount Clean Energies Consent Yocum Oil) Site PREPARED BY: Eric Zweber, Senior Planner AGENDA NO. �. . ATTACHMENTS: Location Map; FHR Roadway Agreement; APPR ED BY: South Service Road Paving Plan; Rosemount Distribution Executive Summary dated September 20, 2011; Rosemount Distribution Roadway A reement Motion to approve the Roadway Agreement with Flint Hills Resources and authorize the Mayor to enter into the Agreement. ISSUE Yocum Oil has operated a porrion of the former Centennial Nitrogen to distribute diesel and biodiesel through their company Rosemount Distribution,LLC (also known as Rosemount Clean Energies). Rosemount Clean Energies had used three of the e�sting tanks on the site with addirional investments in new tuck loading facilities and electrical equipment. To allow Yocum Oil time to plan for an expanded use of the site, the City of Rosemount approved a Roadway AgYeement with Rosemount Distriburion to allow the paving of the internal roadways to September 1, 2014. Earlier this year,Yocum Oil sold the Rosemount Clean Energies site to Flint Hill Resources (FHR). FHR is proposing to use the site as a terminal for theiY ammonium thiosulfate (ATS) fertilizer proposal. FHR is currendy working with the Minnesota Pollution Control Agency (I'CA) to prepare an environmental assessment worksheet (EA� for the ATS terminal. Following the EAW, FHR will need to receive approval from the City for the ATS facility. To allow time for these approval processes, FHR is requesting that the City replace the Rosemount Distribution Roadway Agreement with a new FHR Roadway Agreement that delays the paving of the facility roadways December 31, 2017. Staff is supportive of this request with the conditions included in the agreement,which has been reviewed by the City Attorney. RECOMMENDATION Staff recommends approval of the Roadway agreement and authorization for the Mayor to sign the agreement. Fiint Hills Resources "� ..�r �. ,°Mt 1 � `�"'(p lit � � �� , � � �� P,O � � �. ��` W � � � � .� °` > � � r#� � � e , � � � � . � � w , , , ^ �, . � a � e'".. � �. � ".. . . �, '�,�",�""� � . . Y.� .� t �. a �`� � �..., � � i �II � � F `� II � * �� »�. "�� ,� � �Q �'�3 � ��.��° �R „ � PRI � �► j � "�'qG� "`� .. �', �o . �. �� vSF Q �y •� + Pr� � <L� , �s�. � , . � ��,.� , +� ,� � "' `� $ '. "� * ,r�`` x ;� � � � a +� �� F� � '� � ,,,,. „� �� r'� ��Y�F . # /' � �k �� . s v#. .+ y � < ,. �A �" +�:r � � "' �' � �A v � q��, .�,... � .. � � "w;, we.� �� h� �� ;�►� � �'� �°_; : ��Q �� ;U � . ��,` �;�`�4� �. �� r��,e,ti ��il r � �i . 3�", � ��.eb� j} .� �" m � �.� �� ii�iii�1�� 1 � ^M';`.3. 4 . �: ! "A �� _�aott�s-i�E� � � �4o1►-r sr�E� , �; cst° ,f ' 4 z p � 1:M r *k.: { �� ` a z �r � � t . ..--_w,. � 14S�TH ST E Disclaimer: Map and parcel data are believed[o be accurate, but accuracy is not guaranteed. This is no[ Map Scale a/ega!document and should not be substituted for a title search,appraisal, survey, or for zoning 1 ineh = 1601 feet verification. Dakota County assumes no/egal responsibifity for rhe information contained in this data. $�2��2014 ROADWAY IMPROVEMENT AGREEMENT THIS AGREEMENT is made between the City of Rosemount ("City") and Flint Hills Resources Pine Bend, LLC ("FHR") as of the day of , 2014. RECITALS WHEREAS, FHR owns certain real property in the City of Rosemount legally described on attached Exhibit A ("Property"); and WHEREAS, as part of the purchase of the Property from Rosemount Distribution, LLC ("RD") on June 16, 2014, RD assigned to FHR that certain Roadway Improvement Agreement dated September 20, 2011 by and between the City and RD (the "2011 Agreement"); and WHEREAS, under the 2011 Agreement, RD previously installed a"Temporary Road" on the Property, as defined and detailed in the 2011 Agreement; and WHEREAS, in the course of developing and implementing its plans for the use of the Property (FHR currently plans to construct an ATS storage facility on the Property; such facility or any alternative facility will be referred to herein as the "Facility"), FHR expects to install a new road on the Property (the "Revised Final Road") and will (prior to any such installation) apply for any required grading permit and site plan approval (the "Permits"); and WHEREAS, the City and FHR desire to revise certain provisions in the 2011 Agreement, as detailed herein. NOW, THEREFORE, for good and valuable consideration, the adequacy and receipt of which is hereby acknowledged, the parties agree as follows: 1. Under Paragraph 5 of the 2011 Agreement, the deadline for completing the "Final Road" (as defined in the 2011 Agreement), and removing any part of the Temporary Road that was not included in the Final Road, was September 1, 2014. The City and FHR hereby agree and acknowledge that the Final Road will not be constructed. The City and FHR hereby amend Paragraph 5 of the 2011 Agreement to apply to the Revised Final Road, and amend the deadline date in Paragraph 5 of the 2011 Agreement to be a date determined pursuant to Paragraph 4, below. 2. Under the 2011 Agreement RD has provided to the City a cash deposit in the amount of Ninety-Nine Thousand Dollars ($99,000) to secure faithful performance of its obligation under paragraphs 4 and 5 of this Agreement. Such cash deposit is currently being held by the City, without interest, and RD's rights to such cash deposit have been conveyed to FHR as part of the purchase of the Property by FHR from RD. The deposit will be used for the purpose of satisfying the obligation of RD (as assigned to FHR, and as modified 391942v1 CLL RS215-4 1 448949v1 MDT RS215-4 by this Agreement) under paragraph 5 of the 2011 Agreement and Paragraphs 4 and 5 below, and for no other purpose. Any unused security will be returned by the City to FHR upon completion of the Revised Final Road in accordance with this Agreement. In the event that because of a change in the usage plans for the Property, FHR determines by the date stated in Paragraph 3, below, that the Revised Final Road will not be necessary at the present time, the City will retain the above-noted cash deposit (unless and until the City and FHR mutually agree that the cash deposit will be refunded to FHR, based on then-current plans for the Property), and the parties agree that in that case, the Revised Final Road will not be constructed hereunder or under the 2011 Agreement. 3. By no later than 90 days after the completion of FHR's "front-end engineering" work for its Facility to be located on the Property (such completion date is currently anticipated to be in the second calendar quarter of 2015), unless FHR makes the determination noted in the last sentence in Paragraph 2, above, FHR shall submit a site plan or concept plan to the City for the Revised Final Road. FHR will keep the City timely informed concerning such completion date, and concerning the date of the start-up of operations noted in Paragraphs 4 and 5,below. 4. Should FHR submit for and receive either site plan or planned unit development (PUD) approval from the City that includes completion of the Revised Final Road, FHR will complete the Revised Final Road (in accordance with the City Code), and remove any part of the Temporary Road that is not included in the Revised Final Road, within 180 days of the start-up of operations of the Facility located on the Property 5. Following approval from the City, FHR agrees to use all commercially reasonable efforts to complete the construction of the Facility, subject to project cancellations or suspensions that FHR elects to make. If the Facility construction project is cancelled or suspended or otherwise delayed such that the start-up will not occur by December 31, 2017, the City and FHR agree that that the parties will discuss an additional amendment to this Agreement that would allow FHR to proceed with plans for a different use of the Property (if at that time FHR has any such plans for a different use) or that would set different dates for performance under this Agreement. If on December 31, 2017, the Property continues to be used in a manner that is substantially similar to how RD had used the facility, then (unless the City and FHR mutually agree on some other road improvement plans) the Property's roads shall be improved by June 30, 2018 as illustrated on the South Service Road Paving Plan dated June 26, 2013. 6. In the event FHR fails to complete such improvements by the deadline date calculated under Paragraphs 4 and 5 above, but with FHR still intending at that time to complete the construction of the Revised Final Road, the City may draw on and use security provided under paragraph 2 to construct a Revised Final Road meeting the requirements of City Code in the location shown on the approved site plan or concept plan and the City is hereby given license to enter the Property to complete the construction of the Revised Final Road. 391942v1 CLL RS215-4 2 448949v1 MDT RS215-4 IN WITNESS WHEROF, the parties have executed this Agreement as of the day and year first above written. 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N��p� .J � � _� '— 1 i$. e �� . . . . . :� . ci .s �. f - � � - ��uid nd � u i t� �� :x :w� , � ROSE�✓IOL�.�1T' 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 Ener ies 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 secrion of the site. Yocum's first venture on the property is to distribute diesel and biodiesel through their company Rosemount Distriburion,LLC (also known as Rosemount Clean Energies). Rosemount Clean Energies will use thYee of the e�sting tanks on the site with addirional 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 e�sting tanks. Yocum Oil is requesting an agreement that this new roadway not be paved until SeptembeY 1, 2014. The major reason for this request is because Yocum is unsuYe how they will use the Yemaining 47 acres of pxoperty at this time and the future uses may require a change to the roadway installarion for Rosemount Clean Energies. Staff is supporrive 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 Yequired 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. Thitd,if Yocum were to improve additional phases of the propexty thYOUgh a site plan oY 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 locarion that meets City code requirements. RECOMMENDATION Staff recommends approval of the Roadway agreement and authorization for the Mayor to sign the agreement. 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 wili 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. 391942v1 CLL RS215-4 1 3. By no later than July 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: 391942v1 CLL RS215-4 2