HomeMy WebLinkAbout6.f. SAC Deferral Agreements ApprovalROSEMOUNTEXECUTIVE SUMMARY
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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: