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HomeMy WebLinkAbout6.f. SAC Deferral Agreements ApprovalROSEMOUNTEXECUTIVE SUMMARY C•1 i �'�•[�111►[�11 � City Council Meeting: August 3, 2015 AGENDA ITEM: SAC Deferral Agreements Approval AGENDA SECTION: Consent PREPARED BY: Kim Lindquist, Community Development AGENDA NO. 6.f. Director ATTACHMENTS: Agreement between the City and Cuddle Bugs and the City and Fireside APPROVED BY: ddj Restaurant RECOMMENDED ACTION: Motion to approve the two SAC deferral agreements. Authorize the City Administrator to enter into the agreements if they are under 25 SAC, the payoff is 5 years, and the applicant pays 20% when the agreement commences SUMMARY In June, the City Council authorized staff to apply for the SAC deferral program with the Metropolitan Council. Staff has submitted the application and received the agreement between the City and the Met Council. The City has also received two requests for deferral of the SAC charges one for a daycare and one for the patio at the Fireside restaurant. The agreements are attached and consistent with the application staff had forwarded the City Council; 20% is required up front, the total SAC must be under 25 units, the payback period is 5 years, and there is an interest payment associated with the payback which is required by the Met Council. Recently, staff has been approached about City assistance in paying for SAC charges associated with new development. The agreement requires both the business and property owners signature so if the business does not pay the required payments, the City can assess the cost to the property owner. The City and Met Council SAC are both deferred. A second motion is added to the council items which authorizes the City Administrator to enter into the agreement so long as the agreements are consistent with the above criteria. This authorization will allow the City to be more responsive to requests as typically the City would not issue a building permit without payment of the SAC fees. CONCLUSION The agreements are consistent with the outline of standards staff provided to the Council when asking for authorization to apply for the program. The City Attorney has found the agreements to be acceptable. Staff is also asking that staff would be able to enter into the agreements for expediency so long as they are consistent with the three criteria listed above. DEFERRED PAYMENT AGREEMENT ____________, 2015 by and between the City of Rosemount, a Minnesota municipal corporation th with an address of 2875 145 Street West, Rosemount, MN 55068 Crystals Cuddle Bugs Childcare, LLC, a Minnesota Limited Liability company with an address of ________________ , and Rosemount Crossing, LLC, a Minnesota Limited Liability company with an address of ________________ WHEREAS, the Operator proposes to create and operate a childcare center usiness on property located at 14865 S Robert Trail s the fee owner of the Property; WHEREAS, the Business will be a change in use of the Property and the Owner is therefore subject to charges for sewer and water from the Metropolitan Council Environmental ailability Charge WHEREAS, MCES has assessed the Business in regards to SAC units and has determined that the Property shall be charged four (4) SAC units for the change in use; WHEREAS, Owner and Operator seek to have the water and sewer fees owed for the Bistro deferred. NOW THEREFORE, BASED ON THE FOREGOING, the parties hereby agree as follows: Recitals 1.. The recitals set forth above are incorporated herein as if fully set forth. 2. Fees. The Owner is responsible for the following fees in relation to the establishment of the Business on the Property: Fee Calculation Amount Due Metropolitan Council Fee 4 SAC units x $2,485 per unit $9,940.00 City Sewer Connection Fee 4 SAC units x $1200 per unit $4,800.00 Total Fees $14,740.00 3. Payment of Fees. Owner, or Operator on behalf of Owner, shall pay to City all fees set forth in Paragraph 2 according to the following schedule: a. Initial Payment. $2,948 due at time of issuance of a building permit. b. Deferral Payments. $11,792 with interest at an annual rate of 2.37% due in equal monthly payments of $211.79 over 60 months. Interest shall begin accruing upon the execution of this Agreement. The first monthly payment shall be due on September 1, 2015. All future payments shall due on the 1st of each month until the fees and interest are paid in full. The final monthly payment shall be due on August 1, 2020. The final monthly payment shall consist of any and all amounts remaining due under this Agreement. c. Prepayment. The amounts due under this Agreement may be prepaid without penalty. Interest shall accrue on the balance due at the rate set forth above up and to the date all amounts due under this Agreement are paid in full. 4. Recalculation of Credits. In the event the SAC units for the Property change for any reason after execution of this Agreement, any new fees assessed shall be due and payable pursuant to the City Code and shall not be subject to this Agreement. 5. Sale or Transfer of Property. If the Property is sold or transferred to any other party, any balance remaining due under this Agreement, including interest, shall become immediately due and payable without demand or notice by the City. Owner must notify City in writing at least thirty days prior to any such sale or transfer. 6. Default. "Default" shall mean the failure to make payments pursuant to the terms herein or any other breach of this Agreement and failure to cure said default within ten days of the mailing of written notice by City to Owner and Operator by United States Mail. 7. Remedy. Upon Default, any balance remaining due under this Agreement, including interest, shall become immediately due and payable without demand or notice by the City. In addition, Owner and Operator agree that the full balance due, including interest and any applicable collection or administrative costs incurred by the City, may be certified to the taxes on the Property pursuant to Minn. Stat. 444.075 or any other applicable law. Owner and Operator waive any and all procedures related to certifying amounts due to the Property's taxes including but not limited to notice, hearing and appeal of the assessment. 8. Costs of Collection. To the extent permitted by law, Owner and Operator agree to pay all costs of collection, including reasonable attorneys' fees and legal expenses, incurred by the City in collection of any amounts due herein. 9. Notices. Notices to be given under this Agreement shall be given by enclosing the same in a sealed envelope, postage prepaid and deposited in the U.S. Postal Service, addressed to the parties as listed above. 10. Assignment. None of the parties shall assign this Agreement, nor any interest arising herein, without the written consent of the other parties. 11. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota 12. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Agreement. 13. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 14. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be considered an original. IN WITNESS WHEREOF, this Agreement has been executed as of the day and year first above written. [Remainder of Page Intentionally Left Blank. Signature Pages Follow.] CITY OF ROSEMOUNT William Droste, Mayor Dwight Johnson, City Administrator STATE OF MINNESOTA ) (ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 2015, by William Droste and Dwight Johnson, the Mayor and City Administrator, respectively, of the City of Rosemount, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public OPERATOR By: Its: STATE OF MINNESOTA ) (ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this , 2015, by the behalf of the corporation. Notary Public day of of , on OWNER By: Its: STATE OF ) (ss. COUNTY OF ) The foregoing instrument was acknowledged before me this , 2015, by the of behalf of the company. Notary Public DRAFTED BY: day of on DEFERRED PAYMENT AGREEMENT This Deferred Payment Agreement ("Agreement') is entered into this day of , 2015 by and between the City of Rosemount, a Minnesota municipal corporation with an address of 2875 145th Street West, Rosemount, MN 55068 ("City"), Fireside Bar & Restaurant, a Minnesota corporation with an address of 3410 150th Street W, Rosemount, MN ("Operator"), and Rosemount Properties, LLC, a Minnesota Limited Liability company with an address of 10576 Alison Way, Inver Grove Hts, MN ("Owner"). WHEREAS, the Operator proposes to create and operate a bar and restaurant (`Business") on property located at 3410 150th Street W., Rosemount, MN ("Property"). Owner is the fee owner of the Property; WHEREAS, the Business will be a change in use of the Property and the Owner is therefore subject to charges for sewer and water from the Metropolitan Council Environmental Services Division ("MCES") and the City. The charges are based on Sewer Availability Charge ("SAC") units; WHEREAS, MCES has assessed the Business in regards to SAC units and has determined that the Property shall be charged three (3) SAC units for the change in use; WHEREAS, Owner and Operator seek to have the water and sewer fees owed for the Bistro deferred. NOW THEREFORE, BASED ON THE FOREGOING, the parties hereby agree as follows: 1. Recitals. The recitals set forth above are incorporated herein as if fully set forth. 2. Fees. The Owner is responsible for the following fees in relation to the establishment of the Business on the Property: Fee Calculation Amount Due Metropolitan Council Fee 3 SAC units x $2,485 per unit $7,455.00 City Sewer Connection Fee 3 SAC units x $1200 per unit $3,600.00 Total Fees $11,055.00 3. Payment of Fees. Owner, or Operator on behalf of Owner, shall pay to City all fees set forth in Paragraph 2 according to the following schedule: a. Initial Payment. $2,211.00 due at time of issuance of a building permit. b. Deferral Payments. $8,844.00 with interest at an annual rate of 2.37% due in equal monthly payments of $156.45 over 60 months. Interest shall begin accruing upon the execution of this Agreement. The first monthly payment shall be due on September 1, 2015. All future payments shall due on the 1 st of each month until the fees and interest are paid in full. The final monthly payment shall be due on August 1, 2020. The final monthly payment shall consist of any and all amounts remaining due under this Agreement. c. Prepayment. The amounts due under this Agreement may be prepaid without penalty. Interest shall accrue on the balance due at the rate set forth above up and to the date all amounts due under this Agreement are paid in full. 4. Recalculation of Credits. In the event the SAC units for the Property change for any reason after execution of this Agreement, any new fees assessed shall be due and payable pursuant to the City Code and shall not be subject to this Agreement. 5. Sale or Transfer of Property. If the Property is sold or transferred to any other party, any balance remaining due under this Agreement, including interest, shall become immediately due and payable without demand or notice by the City. Owner must notify City in writing at least thirty days prior to any such sale or transfer. ---6default- "Default"shall mean the failure to -make -payments -pursuant -to -the termsdrerein - or any other breach of this Agreement and failure to cure said default within ten days of the mailing of written notice by City to Owner and Operator by United States Mail. 7. Remedy. Upon Default, any balance remaining due under this Agreement, including interest, shall become immediately due and payable without demand or notice by the City. In addition, Owner and Operator agree that the full balance due, including interest and any applicable collection or administrative costs incurred by the City, may be certified to the taxes on the Property pursuant to Minn. Stat. 444.075 or any other applicable law. Owner and Operator waive any and all procedures related to certifying amounts due to the Property's taxes including but not limited to notice, hearing and appeal of the assessment. S. Costs of Collection. To the extent permitted by law, Owner and Operator agree to pay all costs of collection, including reasonable attorneys' fees and legal expenses, incurred by the City in collection of any amounts due herein. 9. Notices. Notices to be given under this Agreement shall be given by enclosing the same in a sealed envelope, postage prepaid and deposited in the U.S. Postal Service, addressed to the parties as listed above. 10. Assignment None of the parties shall assign this Agreement, nor any interest arising herein, without the written consent of the other parties. 11. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota 12. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Agreement. 13. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 14. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be considered an original. IN WITNESS WHEREOF, this Agreement has been executed as of the day and year first above written. [Remainder of Page Intentionally Left Blank. Signature Pages Follow.] CITY OF ROSEMOUNT William Droste, Mayor Dwight Johnson, City Administrator STATE OF MINNESOTA ) (ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of 2015, by William Droste and Dwight Johnson, the Mayor and City Administrator, respectively, of the City of Rosemount, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public OPERATOR NZ — \1 �—_ By: Its: STATE OF MINNESOTA ) (ss. COUNTY OF DAKOTA ) The foregoing rT rent was acknowledged before me this -29. day of 5 u r_ y 2015, bS�x« the N /Ii of r`1 / on behalf of the corporation. ROXANNE F. MAXA NOTARY PUBLIC - MINNESOTA My Commission Expires Jan. 31, 2020 Notary JIVA10IDIN By. 1pp `c3 wA Cir 6rd Car�sOn Its: STATE OF ) (ss. COUNTY OF ) JThe foregoing ins ent was acknowledged before me this Qgvh day of 4 2015, by the �, , of on behal�ompany. ROXANNE F. MAXA NOTARY PUBLIC -MWNESOTA My Commission Expires Jan. 31, 2020 ^rn�cimi�T - �sryn, Notary Public DRAFTED BY: