Loading...
HomeMy WebLinkAbout2.b. SKB Trust Fund Amendmentsaq ll!m suoijeaado 8y{S woaj pun j Isnal aql of sanuanaa lenuue jo ( % jueoaad A:4!d •e :BUIM01101 aqj sap!noid legj B>iS q1!M uoijel1nsuoo u! Aeuio:4y s,A1!o eqj Aq paiedaid 6u!pueisaapun jo wnpueaowaW e panoidde seq paeo8 pun j Isnal B>IS aqI `luawaaafe p9101069u aql 10 swam aql aad •Apunwwoo aqj ui IuawIsanu! lepdeo 96ael a COI ap!noid of emasai punj Isnal eqj woaj suo!ingpjuoo aw!l -auo u! Isaialui passaadxa osle seq l!ounoo Aj!O eql 'weJ6oad Iuauaanoadwl le1!deo eqj ui papnloui su.wal! aol Apo aql of pund Isnal eqj woaj suollnq!aluoo loaa!p gbnojq} A1!unwwoo eqj of 14aueq aajea -0 ap!noid of sanuanW pund jo uo!Ingij s!p algel!nba aaow e ap!Aoad of pun j Ism I aq1 Jo swJ91 aqj 6u!I!s!n9J u! }saga }ui passaadxa seq pounoo Aj!O agl •aeaA,aad 000`00 $ of suoilnq!alslp lenuue aseaaoui of punk }snag aqj snnolle legl }uauapuawe ue panoidde A1lueoaa 1!ounOO 40 aql `A1!unwwoo }unoweso�j eqj 149ueq jell sloefoid pue sJuana `suoilez!ue6Jo of suoileuop lenuue a�ew of paeo8 Isnai aql Aq paiisep A}!l!gels waal -6uol eqj aol spun] jo a/Uesaa Agl1eaq a jl!nq seq pun j Isnal aql •A1!l!oel junowaso�j gNS eqj le spsodep abeuuol aad aql woaj uo!lnq!jluoo paleoipap a San!aoaa punk I_snal B>IS eql `painlonals Al}ua.aano sy aNnomeNovs - pund Isn.il A punwwoo ByiS eqj jo aan}ona }s aql of sjuawpuawe ssnoslp of 6u!}aaw uaaq aneq 8y{S pue Aj!O aql 'sgIuow leaanas Ised eqj ao j 'lenoidde eqj jo aeaA auo ulgl!m pun j Isnal A}!unwwo:D junowaso�1 -9>I6 eqj jo swia} aq} nna!naa 01 paaa6e 9>iS pue Aj!O aq1 `A}!i!oe} ap!s Isea 1uaiino aq} puedxa 01 leIuewua!nu3 eAs ao} £OOZ goaeW u! (dni) I!waad asn w!jalul a41 panoidde i!ounoo Apo eqj legl aw!l aqj IV 3nSSl : N0113Vr 'vaN30V - IIaNnOa Am vooz `OZ -11HdV 3Hl NO now 3HJ. 33VId Ol N01133NIO 1IONnOa m3S 01 NOISSnasla :NOIlaVf a3aN3WWO33N AS a3AOUddV noiNb UlAoidde uoljoIN paeo8 Ism 1 8>(S `6u!puelsaapun }o wnpuejow9Vj :S1N3WHaV11V * 'ON V CIN3JVV NOiV/ JiSIN1Wd`d AllO `3oE)mj&J3A 31NVr :AS a3NVd321d :NO1133S vaN30V SiN3WaN3NV dNn-i 1sma B>IS :W311 VaN39V 1700Z `t 1!ady :a }ea uo!sseS MioAA 1!ounoo Aj!O N0113V MOO AmvwwnS 3AI1na3X3 1Nnowasoi1 30 Ally t f r redirected to the City of Rosemount to be applied toward projects detailed in the City's Capital Improvement Plan (CIP). b. The SKB Trust Fund will make a one -time donation of $500,000 to the City, following the transaction closing on the property, to help pay for the cost of land acquisition for a Dakota County branch library in Rosemount. c. The City will allow the SKB Trust Fund to increase annual community distributions based on the Consumer Price Index or percentage population growth in Rosemount, whichever is greater. In addition, SKB Environmental is seeking relief from the Enhanced End Use Plan that was included as part of the March 2003 IUP approval. The intent of the Enhanced End Use Plan was to provide aesthetically appealing landscaping when facility closure occurs. The facility is located in the midst of the City's heavy industrialized east side. The benefit to the community, in terms of developing a passive recreation or natural area open space, in an area that is surrounded by the likes of the FHR Pine Bend Refinery, Endres Processing, Spectra- Alloy, trucking, and other non - residential, non - recreational users is marginal at best. SKB Environmental seeks to have the end use plan be reverted to the standard end use plan that must comply with cover and closure requirements in State regulations for similar facilities. A provision of the March 2003 IUP related to the Enhanced End Use Plan indicated that at some time in the future, if the City Council determined that such an enhanced end use was not required, SKB would provide monetary compensation to the City that represented the difference between the costs of regulated closure end use and the enhanced end use in the March 2003 IUP. SKB is concerned that the costs assigned to the various end use proposals are speculative and indefinable at this time, and could lead to litigation in the future should the City and SKB disagree on the closure cost stipulations. The cost estimates in the March 2003 approval assigned costs based on an estimate of what closure would cost at that point in time. In other words, if the facility was prepared for end use immediately and at once, the costs would be incurred for purchasing fill, grading and landscaping, tree planting, etc. SKB has indicated that closures over time will have marginal direct costs because SKB continually partners and negotiates with various contractors to dump fill on the site at no or little cost to SKB, or that the cost of fill is sometimes built into the pricing structure of negotiated contracts with facility users. Using that as the basis of cost analysis, it can be argued that the remaining significant expense that differentiates the Enhanced End Use Plan from standard closure end use is the planting of trees that were planned for aesthetic purposes. The MOU proposes to have SKB pay to the City the amount of $25,000 annually for the next ten years. The payment was determined on the assumption that the Enhanced End Use Plan would have 1,000 trees and the cost of those significant trees would be $250 each. The total of $250,000 would be contributed to the City over a ten year period to provide for tree planting, landscaping, and natural resource projects. This contribution from SKB Environmental would absolve them of the differential cost commitment between the Enhanced End Use Plan and the regulated closure end use. 2 SUMMARY The SKB Trust Fund Board has approved the MOU committing to amend the Trust Fund distribution formula and providing for a significant one -time contribution to assist the City with library land acquisition, contingent upon the City's amendment of the March 2003 IUP providing relief from the Enhance End Use Plan. 3 r MEMORANDUM OF UNDERSTANDING THIS MEMORANDUM OF UNDERSTANDING is made this T day of 2004, made by and between the City of Rosemount, a Minnesota municipal corporation (hereinafter the "City"), and SKB Environmental, Inc. (hereinafter "SKB "). I. Background 1.1. On , 2003, the City and SKB entered into an agreement entitled Interim Use Permit Agreement, Reissuance to SKB, Inc., Minnesota Industrial Containment Facility (the "IUP Agreement "). 1.2. Section 21 of the IUP Agreement provides that SKB and the City are to re- evaluate the terms of the Development Commitment, attached as Exhibit D to the IUP Agreement, to determine whether the Community Trust Fund and the terms of the documents creating and governing the trust (the "Trust Documents ") continue to be reasonable and appropriate to the needs of the community. 1.3. In accordance with this process of re- evaluation of the Trust Documents, it was determined by the parties that there are changes that could be made to the Trust Documents that would better serve the City of Rosemount. 1.4. The parties further determined that, in consideration of the changes proposed to the Trust Documents, it was reasonable and appropriate to make certain changes to the IUP Agreement that were requested by SKB. 2. Amendment to the Trust Documents The parties agree to use their best reasonable efforts to accomplish amendments to the Trust Documents to accomplish the following: 2.1. Commencing with revenue received from SKB in the year 2004, 50 % of annual payments to the Trust will be contributed each year by the Trust to the City for capital projects listed in the City's Capital Improvement Program ( "CIP" ). 2.2. The Trust will make a one -time contribution of $500,000 to the City for the acquisition of land for a library in the City. The Trust may make additional contributions to the City, from time to time, for other special projects meeting the criteria of the purposes of the Trust stated in Section 1 of the Trust Document. The contributions described in this Section 2.2 will be in addition to contributions described in Section 2.1 of this Memorandum and will be authorized notwithstanding any other limitations on distributions contained in the Trust Documents. CLLr245068v3 1 RS220 -36 w A, 2.3. The maximum amount of annual community distributions from the Trust will not be more than $100,000 for the year 2004. The maximum amount of the annual contribution will increase annually thereafter each year in accordance with the percentage increase for the previous year of the Consumer Price Index, all urban consumers, Midwest urban-all items, of the United States Department of Labor, Bureau of Labor Statistics or the percentage increase of Rosemount population for the previous year using the certified annual population estimate of the Metropolitan Council, whichever is greater. However, the Trust will not be required to make annual contributions in such amounts specified in this paragraph 2.3, if. 1) the Trust does not receive requests for contributions in at least such amount for projects that are deemed by the Trustees to be reasonable, suitable and qualified for contributions according to the Trust documents, or 2) total contributions for that year exceed the income of the Trust for that year. 3. Amendments to the ]UP Agreement If the changes to the Trust Documents described in Section 2 of this Memorandum are made, the City and SKB agree to the following changes to the ]UP Agreement: 3.1. SKB will not be required to conform the facilities, upon closure, to the Proposed Landscape Plan, dated October 2001, updated January 2003, prepared by the University of Minnesota Extension and Dakota County Master Gardeners and attached as Exhibit E of the ]UP Agreement. Specifically, the IUP Agreement will be amended as follows: 3.1. L The following phrase will be deleted from Section 1 of the IUP Agreement: "by the "PROPOSED LANDSCAPE PLAN" dated October, 2001, updated January 2003, prepared by the University of Minnesota Extension and Dakota County Master Gardeners (Exhibit E of this Agreement), ". 3.1.2. The second paragraph of Section 18 of the ]UP Agreement will be amended to read: "Closure under previously approved plans would have required expenditure of approximately three to four million dollars (expressed in 2003 dollars). Because the closure plans approved by this Agreement will be substantially less expensive and of less benefit to the City, the Development Commitment is amended to provide for the payment to the City of an additional payment of $25,000 per year for 10 years commencing on July 1, 2004, to be used by the City for landscaping and natural resource projects." 3.1.3. Section 20 of the IUP Agreement will be amended to read as follows: "Financial Assurances. SKB shall comply with the financial assurance requirements of the MPCA and DC. No reduction in the CLL-245068v3 2 RS220 -36 financial assurance requirements may be made without the written approval of the City Administrator." 3.1.4. Exhibit E to the current ]UP Agreement as it relates to finished design and landscaping will be replaced with � -& the IUP Agreement of Peee 3.2. The current Development Commitment, attached to the IUP Agreement as Exhibit D, with the attached copy of the SKB Trust Agreement as amended, all as amended in accordance with Section 4.1 of this Memorandum, will remain in effect without amendment required by the City for at least 15 years from the date of the amendment of the ]UP Agreement. The ]UP Agreement will be amended by adding the following sentence at the end of Section 21: "Notwithstanding any provision of Section 2 of this Agreement, the City will not require any amendment of the Development Commitment for 15 years from the date of this Agreement." 4. Amendments to the Development Commitment 4.1. The Development Commitment will be amended by addendum adding new Section 10 g. as follows: "SKB will pay to the City the amount of $25,000 per year for 10 years commencing on July 1, 2004, to be used by the City for landscaping and natural resource projects." CITY OF ROSEMOUNT By: Its: Mayor And by: Its: Clerk SKB ENVIRONMENTAL, INC. v By: Its: CLL- 2450680 RS220 -36 4 -6 -04 copy of motion made at the SKB Environmental Rosemount Community Trust Board of Trustee Meeting. Matt Kearney moved, Steve Casey seconded motion to approve the following changes to the Trust Agreement with the City of Rosemount contingent upon the approval of the Rosemount City Council of the trust agreement and IUP to the satisfaction of SKB Inca as recorded and amended in the Memorandum of Understanding dated 4 -6 -04 2.1 Commencing with revenue received from SKB in the year 2002, 50% of annual payments to the trust will be contributed each year by the trust to the city for capital projects listed in the City' Capital Improvement Program (CIP" ). 2.2 The Trust will make a one -time contribution of $500,000 to the City for the acquisition of land for a library in the City upon the successful closing of the acquisition. The Trust may make additional contributions to the City, from time to time, for other special projects meeting the criteria of the purposes of the Trust stated in Section 1 of the Trust Document. The contributions described in this Section 2.2 will be in addition to contributions described in Section 2.1 of this Memorandum and will be authorized notwithstanding any other limitation on distributions contained in the Trust Documents. 2.3 The maximum amount of annual community distributions from the trust will not be more than $100.000 for the year 2004. The maximum amount of the annual contribution will increase annually thereafter each year in accordance with the percentage increase for the previous year of the Consumer Price Index, all urban consumers, Midwest urban -all items, of the United States Department of Labor, Bureau of Labor Statistics or the percentage increase of Rosemount population for the previous year using the certified annual population estimate of the Metropolitan Council, whichever is greater. However, the Trust will not be required to make annual contributions in such amounts specified in this paragraph 2.3,if: 1) the Trust does not receive requests for contributions in at least such amount for projects that are deemed by the Trustees to be reasonable, suitable and qualified for contributions according to the Trust documents, or 2) total contributions for that year exceed the income of the Trust for that year. Motion carried unanimously.