The URL can be used to link to this page

Home My WebLink About6.l. County Road 73 Street & Utility Improvement Project, City Project #399-Ponding AgreementsP AGENDA ITEM: County Road 73 Street Utility Improvement Project, City Project #399- Ponding Agreements AGENDA SECTION: Consent AGENDA NO. PREPARED BY: Andrew J. Brotzler, PE, Director of Public Works /City Engineer ATTACHMENTS: Easement and Trunk Area Charge Credit Agreements; Storm Water Lateral Trunk Conveyance and Ponding Fee Calculations APPROVED BY: PIP RECOMMENDED ACTION: Motion to Approve the Easement and Trunk Area Charge Credit Agreements and Authorize the Necessary Signatures for Parcels 1A, 2A, 5. ROSEMOUNT City Council Meeting: August 18, 2009 BACKGROUND: CITY COUNCIL EXECUTIVE SUMMARY The County Road 73 Street and Utility Improvement Project, City Project #399 includes the improvement of County Road 73 (Akron Avenue) from a 2 -lane rural gravel road to a 2 -lane urban road with medians, turn lanes and trails between CSAH 42 and Bonaire Path. Through the American Recovery and Reinvestment Act (ARRA), federal stimulus money has been secured for a portion of the estimated project cost. In June 2009, the City was officially notified that the Metropolitan Council had awarded $2.96 million to the County Road 73 project. At the previous meeting Council approved the Petition and Waiver Agreements and Escrow Agreements for the project. The Easement and Trunk Area Charge Credit Agreements have been developed to compensate property owners in the future with development for the dedication of pond easements now to accommodate the project. This agreement is in -lieu of a cash payment top the property owner. SUMMARY At this time, staff is recommending Council approval of the Easement and Trunk Area Charge Credit Agreements for Parcels IA, 2A, 5. G: \ENGPROJ \399 \8 -18-09 CC Ponding Agreements.doc `TY OF RO5EMO TRUNK CONVEYANCE AND RM "EZ" 20 Development Name: County Road 73 (Akron Ave.), Parcel 1A -Pond 1 Credit, Rosemount, MN Date of Plans: 8/04/09 Date of Fee Calculation: 8/04/09 WSB 01556 -59 1. Total site area (acres): 7.225 Acres County Road 73 Right of Way 2. Ponding Area Permanent Easement (acres): 0.764 Acres Permanent Easement Area used in calculation. Pond 1: 0.637 Acres to HWL Pond 2: Pond 3: Total ponding area (acres): 0.637 Acres to HWL 3. Floodplain area not included in ponding area (acres): N/A 4. Total wetland not included in ponding or floodplain area (acres): N/A 5. Public park area (acres): N/A 6. County and State road right -of -way area (acres): 7.225 Acres 7. Determine Net Developable Area: N/A Equation: Net Developable Area Item 1 Item 2 Item 3 Item 4 Item 5 Item 6 8. Determine Total Lateral Trunk Conveyance Fee: N/A 8a. Fee at Time of Grading Permit Equation: (Item I.7)($6,665 /acre) Lateral Trunk Conveyance Fee Part 1: N/A 8b. Fee at Time of Building Permit Lateral Trunk Conveyance Fee Part 2: N/A Low Density Residential $745/lot High Density Residential $280 /unit Commercial/Industrial and Other Land Uses (Item I.7)($2,200/Net Developable Acre) 8/13/2009 C:IDocuments and SettingslcadlLocal SettingslTemporary Internet Fi1esIOLKB43101556- 59- Parcel IA Trunk fee calc- 08042009.rtf II. STORM WATER PONDING FEE 1. Is off -site ponding provided? If no, no fee required and skip Y to Item 2. If yes, skip to Item 3. 2. Is on -site ponding oversized at the request of the City? If yes, skip to Section III. If no, enter $0 in Item H.5 and skip a N to Section V 3. Circle applicable fee scale: a. 1 -3 lots /acre: $3,820 /acre b. Greater than 3 lots /acre: $5,920 /acre c. Commercial/Industrial: $9,0 1 7/acre d. Public/Institutional e. Golf Course/Cemetery f. Schools g. Railroad, County, and State right -of -way h. Churches i. Hospitals j. Prisons k. Parks 1. Other unique land uses 4. Determine Ponding Fee: N/A Equation: (Item I.7)(Fee scale in Item 3)= Ponding Fee a r r 1�:.: -a .r.S 9 u h c� I 7 'I7 RNT W ATER :POI I DIivG FEE CREDTI'S (If appmca (e) Y�f c: 1. On-site storage required (cubic yards): 5678 CY Live Pool Dead Pool 2. On -site storage provided (cubic yards): N/A Pond 1 will be constructed with CR 73 Project. 3. Excess storage provided: N/A Equation: Item 3 Item 2 Excess cubic yards 4. Determine excess storage credit: N/A Equation: (Item 4)($2 /cubic yard) Excess storage credit 5. Additional land required for pond (acres): 0.764 Acres 6. Determine excess land cost credit for pond: 0.764 Acres x ($90,000/ Acre Comm) 68,760.00 Equation: (Item 6)($60,000 /acre -Res) Excess land cost ($90,000 /acre-Comm) 7. Determine Total Ponding Credit: 0.00 68,760.00 $68,760.00 Equation: Item 4 Item 6 Total Ponding Credit 8/13/2009 C.•IDocuments and SettingslcadlLocal SettingslTemporary Internet Files1OLKB43101556 -59- Parcel lA Trunk fee- calc -08042009.rtf IV. TOTAL STORM WATER PONDING FEE 1. Determine total storm water ponding fee: 0.00 68,760.00 68,760.00 Equation: Item II.4 Item III.7 Total Storm Water Ponding Fee HER CONSIDERATION List any other considerations to be taken into account into the calculation of the fees: C OTALLATERAL TR K O AND P 1. Determine Total Lateral Trunk Conveyance and Ponding Fee Fee at Time of Grading Permit Equation: Item I.8a Item IV.1 Total Fee at Grading Permit To Be Determined Fee at Time of Building Permit Equation: Item I.8b Total Fee at Building Permit To Be Determined Calculations performed by Ted Witkowski Date 8/04/2009 8/13/2009 C: WDocuments and SettingslcadlLocal SettingslTemporary Internet FilesIOLKB43101556- 59- Parcel lA Trunk fee- calc -08042009.rtf Parcel 1A 34- 58600- 100 -00 EASEMENT AND TRUNK AREA CHARGE CREDIT AGREEMENT THIS AGREEMENT is made as of the day of 2009, by and between the City of Rosemount, Minnesota, a Minnesota municipal corporation "City") and Mary Louise Daily and John Daily, wife and husband; Patricia Dziedzic and Walter Dziedzic, wife and husband; Thomas L. McCarthy, a single person; Cynthia McNary and Richard McNary, wife and husband; John P. Wiederhold and Judith Wiederhold, husband and wife are the fee owners and Arcon Development, Inc., a Minnesota corporation and The Pemtom Land Company, a Minnesota corporation are contract for deed vendees (hereinafter collectively referred to as "Owner 1. BACKGROUND 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 property 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 Sixty eight thousand seven hundred sixty dollars ($68,760.00). 1 1.6. Owner is willing to grant an easement over a part of the Subject Property in accordance with this Agreement for ponding, utility and drainage on the terms and conditions set forth in this Agreement. 1.7. Owner has agreed to accept a credit against future storm water trunk area charges 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 trunk 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, trail, utility, drainage and ponding improvements as a part of CP 399 prior to December 31, 2011, the easement granted pursuant to this Agreement shall 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 delivery of the easement and bind and obligate the City until the terms of paragraphs 2.2. and 3.1 have been satisfied. 2 IN WITNESS WHEREOF, the parties hereto, by their authorized representatives, have hereunto set their hands as of the day and date first above written. 3 CITY OF ROSEMOUNT By: William Droste, Mayor And by: Amy Domeier, Clerk OWNER THE PEMTOM LAND COMPANY By DANIEL J. HERBST President ARCON DEVELOPMENT, INC. By Scott Johnson President John P. Wiederhold Judy Wiederhold Thomas McCarthy Mary Louise Daily John Daily Cindy McNary Richard McNary Patricia Dziedzic Walter Dziedzic 4 Attachment One Outlot J, PRESTWICK PLACE, according to the plat on file and of record in the office of the County Recorder, Dakota County, Minnesota. 5 CITY. OF ROSEMOUNT TRUNK CONVEYANCE AND PONIMNG FEE FORM "EZ" 2009 Development Name: County Road 73 (Akron Ave.), Parcel 2A -Pond 2 Credit, Rosemount, MN Date of Plans 8/04/09 Date of Fee Calculation: 8/04/09 WSB 01556 -59 T ERA11. TRUNK CONVEYANCE EEI 1. Total site area (acres): 5.765 Acres County Road 73 Right of Way 2. Ponding area Permanent Easement (acres): 0.856 Acre Permanent Easement Area used in calculation. Pond 1: Pond 2: 0.683 Acres to HWL Pond 3: Total ponding area (acres): 0.683 Acres to HWL 3. Floodplain area not included in ponding area (acres): N/A 4. Total wetland not included in ponding or floodplain area (acres): N/A 5. Public park area (acres): N/A 6. County and State road right -of -way area (acres): 5.765 Acres 7. Determine Net Developable Area: N/A Equation: Net Developable Area Item 1 Item 2 Item 3 Item 4 Item 5 Item 6 8. Determine Total Lateral Trunk Conveyance Fee: N/A 8a. Fee at Time of Grading Permit Equation: (Item I.7)($6,665 /acre) Lateral Trunk Conveyance Fee Part 1: N/A 8b. Fee at Time of Building Permit Lateral Trunk Conveyance Fee Part 2: N/A Low Density Residential $745/lot High Density Residential $280 /unit Commercial/Industrial and Other Land Uses (Item I.7)($2,200/Net Developable Acre) 8/13/2009 G: IENGPROJI3991Easement Documents1Parcel 2A- Groth- Minova101556 -59- Parcel 2A Trunk fee calc- 08042009.rtf II. STORM WATER. PONDING FEE 1. Is off -site ponding provided? If no, no fee required and skip Y to Item 2. If yes, skip to Item 3. 2. Is on -site ponding oversized at the request of the City? If yes, skip to Section III. If no, enter $0 in Item 11.5 and skip a N to Section V 3. Circle applicable fee scale: a. 1 -3 lots /acre: $3,820 /acre b. Greater than 3 lots /acre: $5,920 /acre c. Commercial/Industrial: $9,017 /acre d. Public/Institutional e. Golf Course /Cemetery f. Schools g. Railroad, County, and State right -of -way h. Churches i. Hospitals j. Prisons k. Parks 1. Other unique land uses 4. Determine Ponding Fee: N/A Equation: (Item I.7)(Fee scale in Item 3)= Ponding Fee '4.r Vil J M tl rw�.x r:v`-W. l fry s h' aF S� �V �p C DIT h Isle IIT.:.STORM �VATER (I£ an y 1. On -site storage required (cubic yards): 5323 CY Live Pool Dead Pool 2. On -site storage provided (cubic yards): N/A Pond 2 will be constructed with CR 73 Project. 3. Excess storage provided: N/A Equation: Item 3 Item 2 Excess cubic yards 4. Determine excess storage credit: N/A Equation: (Item 4)($2 /cubic yard) Excess storage credit 5. Additional land required for pond (acres): 0.856 Acres 6. Determine excess land cost credit for pond: 0.856 Acres x ($60,000/ Acre Res) 51,360.00 Equation: (Item 6)($60,000 /acre -Res) Excess land cost ($90,000 /acre -Comm) 7. Determine Total Ponding Credit: 0.00 51,360.00 $51,360.00 Equation: Item 4 Item 6 Total Ponding Credit 8/13/2009 G :•IENGPROJI3991Easement DocumentstParcel2A- Groth- Minoval01556 -59- Parcel 2A Think fee- calc- 08042009.rtf N. TOTAL STORM WATER PONJMNG FEE 1. Determine total storm water ponding fee: 0.00 51,360.00 51,360.00 Equation: Item II.4 Item III.7 Total Storm Water Ponding Fee TITER CONSIDERATIONS List any other considerations to be taken into account into the calculation of the fees: ►TAL LATERAI:.TR UNKCONVEYANCETEEANDTONDINGT 1. Determine Total Lateral Trunk Conveyance and Ponding Fee Fee at Time of Grading Permit Equation: Item I.8a Item IV.1 Total Fee at Grading Permit To Be Determined Fee at Time of Building Permit Equation: Item I.8b Total Fee at Building Permit To Be Determined Calculations performed by Ted Witkowski Date 8/04/2009 8/13/2009 G:IENGPROJ13991Easement DocumentsiParcel 2A- Groth- Minova101556- 59- Parcel 2A Trunk fee- ca1c- 08042009.rif Parcel 2A 34- 02200 030 -75 EASEMENT AND TRUNK AREA CHARGE CREDIT AGREEMENT THIS AGREEMENT is made as of the 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, as fee owners, and Minnova Land, LLC a Minnesota limited liability, as contract for deed vendee (hereinafter collectively referred to as "Owner 1. BACKGROUND 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 property 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 and drainage on the terms and conditions set forth in this Agreement. 354669v2 CBR RS220 -223 1 1.7. Owner has agreed to accept a credit against future storm water trunk area charges 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 trunk 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, trail, utility, drainage and ponding improvements as a part of CP 399 prior to December 31, 2011, the easement granted pursuant to this Agreement shall 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 delivery of the easement and bind and obligate the City until the terms 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. 354669v2 CBR RS220 -223 2 CITY OF ROSEMOUNT By: William Droste, Mayor And by: Amy Domeier, Clerk 354669v2 CBR RS220 -223 3 OWNER Wayne Groth Sheila M. Groth MINNOVA LAND, LLC By: Its: Attachment One That part of the West half of Southeast Quarter of Section 22, Township 115, Range 19, Dakota County, Minnesota lying southerly of the railroad right of way. 354669v2 CBR RS220 -223 4 CITY OF ROSEMOUNT STORM WATER LATERAL TRUNK CONVEYANCE AND PONDING FEE CALCULATION FORM "EZ" 2009 Development Name: County Road 73 (Akron Ave.), Parcel 5 -Pond 3 Credit, Rosemount, MN Date of Plans 8/04/09 Date of Fee Calculation: 8/04/09 WSB 01556 -59 I: LATERAL TRUNK CONVEYANCE FEE 1. Total site area (acres): 3.897 Acres County Road 73 County Road 38 Right of Way 2. Ponding area Permanent Easement (acres): 1.223 Acre Permanent Easement Area in calculation. Pond 1: Pond 2: Pond 3: 0.626 Acres Total ponding area (acres): 0.626 Acres 3. Floodplain area not included in ponding area (acres): N/A 4. Total wetland not included in ponding or floodplain area (acres): N/A 5. Public park area (acres): N/A 6. County and State road right -of -way area (acres): 3.897 Acres 7. Determine Net Developable Area: N/A Equation: Net Developable Area Item 1— Item 2 Item 3 Item 4 Item 5 Item 6 8. Determine Total Lateral Trunk Conveyance Fee: N/A 8a. Fee at Time of Grading Permit Equation: (Item I.7)($6,665 /acre) Lateral Trunk Conveyance Fee Part 1: N/A 8b. Fee at Time of Building Permit Lateral Trunk Conveyance Fee Part 2: N/A Low Density Residential $745/lot High Density Residential $280 /unit Commercial/Industrial and Other Land Uses (Item I.7)($2,200/Net Developable Acre) 8/13/2009 G: IENGPROJ13991Easement Documents1Parcel5 -Kogl JMORE- MineaBYM101556 -59- Parcel 5 Tiunkfee- calc- 08042009.rtf II. STORM WATER PONDING FEE 1. Is off -site ponding provided? If no, no fee required and skip Y to Item 2. If yes, skip to Item 3. 2. Is on -site ponding oversized at the request of the City? If yes, skip to Section III. If no, enter $0 in Item 11.5 and skip ri N to Section V 3. Circle applicable fee scale: a. 1 -3 lots /acre: $3,820 /acre b. Greater than 31ots /acre: $5,920 /acre c. Commercial/Industrial: $9,017 /acre d. Public/Institutional e. Golf Course /Cemetery f. Schools g. Railroad, County, and State right -of -way h. Churches i. Hospitals j. Prisons k. Parks 1. Other unique land uses 4. Determine Ponding Fee: N/A Equation: (Item I.7)(Fee scale in Item 3)= Ponding Fee IIE- STORM,WATER PO DITS aim hca ble) r 1. On-site storage required (cubic yards): 4438 CY Live Pool Dead Pool 2. On -site storage provided (cubic yards): N/A Pond 3 will be constructed with CR 73 Project. 3. Excess storage provided: N/A Equation: Item 3 Item 2 Excess cubic yards 4. Determine excess storage credit: N/A Equation: (Item 4)($2 /cubic yard) Excess storage credit 5. Additional land required for pond (acres): 1.223 Acres Permanent Easement 6. Determine excess land cost credit for pond: 1.223 Acres x ($60,000/ Acre -Res) 73,380.00 Equation: (Item 6)($60,000 /acre -Res) Excess land cost ($90,000 /acre -Comm) 7. Determine Total Ponding Credit: 0.00 73,380.00 $73,380.00 Equation: Item 4 Item 6 Total Ponding Credit 8/13/2009 G: IENGPROJ13991Easement Documents1Parcel 5- Kogl- JMORE- MineaBVM101556 -59- Parcel 5 Trunk fee- calc- 08042009.rtf. IV. TOTAL STORM WATER PONDING FEE 1. Determine total storm water ponding fee: 0.00 73,380.00 73,380.00 Equation: Item II.4 Item I11.7 Total Storm Water Ponding Fee OTHE CONSIDERATIONS List any other considerations to be taken into account into the calculation of the fees: VI. TOTAL LATERAL TRUNK CONVEYANCE•FEE AND PONDING FEE' 1. Determine Total Lateral Trunk Conveyance and Ponding Fee Fee at Time of Grading Permit Equation: Item I.8a Item IV.1 Total Fee at Grading Permit To Be Determined Fee at Time of Building Permit Equation: Item I.8b Total Fee at Building Permit To Be Determined Calculations performed by Ted Witkowski Date 8/04/2009 8/13/2009 G :IENGPROJ13991Easement DocumentslParcel 5 -Kogl JMORE- MineaBVM101556- 59- Parcel5 Trunk fee calc- 08042009.rtf Parcel 5 34- 02200 013 -50 EASEMENT AND TRUNK AREA CHARGE CREDIT AGREEMENT THIS AGREEMENT is made as of the day of 2009, by and between the City of Rosemount, Minnesota, a Minnesota municipal corporation "City") and by Kogl Family Limited Partnership, a limited partnership organized under the laws of the State of Minnesota; JMOR Real Estate Investments, LLC, a limited liability company organized under the laws of the State of Minnesota; and BVM Real Estate Investments, LLC, a limited liability company organized under the laws of the State of Minnesota (hereinafter collectively referred to as "Owner 1. BACKGROUND 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 property 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 Seventy three thousand three hundred eighty dollars ($73,380.00). 1 1.6. Owner is willing to grant an easement over a part of the Subject Property in accordance with this Agreement for ponding, utility and drainage on the terms and conditions set forth in this Agreement. 1.7. Owner has agreed to accept a credit against future storm water trunk area charges 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 trunk 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, trail, utility, drainage and ponding improvements as a part of CP 399 prior to December 31, 2011, the easement granted pursuant to this Agreement shall 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 delivery of the easement and bind and obligate the City until the terms of paragraphs 2.2. and 3.1 have been satisfied. 2 IN WITNESS WHEREOF, the parties hereto, by their authorized representatives, have hereunto set their hands as of the day and date first above written. OWNER CITY OF ROSEMOUNT By: William Droste, Mayor And by: Amy Domeier, Clerk Kogl Family Limited Partnership By Its General Partner JMOR Real Estate Investments, LLC By Its Chief Manager BVM Real Estate Investments, LLC By Its Chief Manager 3 Attachment One That part of the East Half of the Southwest Quarter (E1 /2 SW 1/4) of Section 22, Township 115, Range 19, Dakota County, Minnesota, lying northerly of the northerly right -of -way line of the Chicago, Rock Island and Pacific Railroad, and lying southerly of the centerline of 135 Street West as now established (also known as County Road No. 38). 4