HomeMy WebLinkAbout6.e. Authorize Financing for Lease/Purchase of CIP EquipmentCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: May 15, 2001
AGENDA ITEM: Authorize Financing for Lease /Purchase of
AGENDA SECTION:
CIP Equipment
Consent
PREPARED BY: Jeff May,-inance Director
AGENDA
s # iY
ATTACHMENTS: Resolution
APPROVED BY•
Attached is a resolution with an exhibit that lists the 2001 CIP items that are part of the 2001
equipment lease- purchase. The lease - purchase financing was approved at the March 20th City
Council meeting. Springsteds received the bids Friday afternoon, May 11" and the results will be
handed out at the meeting Tuesday evening with the recommendation for the award of the bids. The
resolution with the blanks filled in will also be handed out Tuesday evening. Settlement for the
proceeds should occur by the end of this month.
RECOMMENDED ACTION:
Approve A RESOLUTION AUTHORIZING LEASE PURCHASE FINANCING OF CAPITAL
EQUIPMENT FOR THE CITY.
COUNCIL ACTION:
.t
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2001-
A RESOLUTION AUTHORIZING LEASE PURCHASE FINANCING
OF CAPITAL EQUIPMENT FOR THE CITY
WHEREAS, Minnesota Statutes, Section 465.71, authorizes a statutory city to lease real or
personal property with an option to purchase under a lease purchase agreement; and
WHEREAS, the City desires to acquire certain capital equipment listed on Exhibit A attached
hereto (the 'Equipment ") pursuant to one or more lease purchase agreements for a term of
approximately ten years, with the final payment being due on or before August 1, 2011, with
substantially equal semi - annual lease payments; and
WHEREAS, a form of lease purchase agreement between the City and
(" ") (the "Lease Purchase Agreement ") has been prepared and is on
file with the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount,
Minnesota as follows:
1. Subject to the provisions of paragraphs 2 and 3 hereof, the Lease Purchase Agreement, in
substantially the form submitted, is hereby approved, and the Mayor and City Clerk are
authorized to execute the Lease Purchase Agreement and any and all other documents necessary
to consummate the transaction contemplated by the Lease Purchase Agreement.
2. The amount of rental payments under the Lease Purchase Agreement shall not exceed a
principal component of $885,000 and the interest rate on the principal component shall not
exceed %. The Mayor and City Clerk are hereby delegated the authority to establish the
amount of the principal component and the interest rate or rates on the interest component of the
rental payments, and the execution of the Lease Purchase Agreement by the Mayor and City
Clerk shall be conclusive evidence of the establishment and acceptance thereof by the City.
3. The Lease Purchase Agreement and related documents may include such modifications
thereof, deletions therefrom and additions thereto as may be necessary or appropriate and
approved by Briggs and Morgan, Professional Association, acting as Bond Counsel, prior to the
execution of the documents, and the execution of such documents by the appropriate officer or
officers of the City of Rosemount herein authorized shall be conclusive evidence of the approval
of such documents in accordance with the terms hereof.
4. In the event of the disability or resignation or other absence of the Mayor or City Clerk,
such other officers of the City who may act on their behalf shall, without further act or
authorization of the City Council, do all things and execute all instruments and documents
required under the Lease Purchase Agreement to be done or to be executed by such absent or
disabled officials.
1285609v1
ADOPTED this 15 day of May, 2001. RESOLUTION 2001 -
Cathy Busho, Mayor
ATTEST:
Linda J. Jentink, City Clerk
Motion by:
Voted in favor:
Voted Against:
Members Absent:
1285609v1
Seconded by
PA
*yt
Item
Electric Ice Resurfacer
Exhibit 1
Pumper Fire Truck
Single Axle Dump Truck
Tandem Axle Dump Truck
Grader
Tractor for Sidewalks & Ditches
Total Estimated Cost
1285609v1
3
RESOLUTION 2001 -
Estimated Cost
$ 84,100
330,900
106,000
111,000
150,000
103,000
$885,000
R
w
s
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2001-
A RESOLUTION AUTHORIZING LEASE PURCHASE FINANCING
OF CAPITAL EQUIPMENT FOR THE CITY
WHEREAS, Minnesota Statutes, Section 465.71, authorizes a statutory city to lease real or
personal property with an option to purchase under a lease purchase agreement; and
WHEREAS, the City desires to acquire certain capital equipment listed on Exhibit A attached
hereto (the "Equipment ") pursuant to one or more lease purchase agreements for a term of
approximately ten years, with the final payment being due on or before August 1, 2011, with
substantially equal semi - annual lease payments; and
WHEREAS, a form of lease purchase agreement between the City and Lease Finance Group in
Eden Prairie, Minnesota (the "Lease Purchase Agreement ") has been prepared and is on file with
the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount,
Minnesota as follows:
1. ' Subject to the provisions of paragraphs 2 and 3 hereof, the Lease Purchase Agreement, in
substantially the form submitted, is hereby approved, and the Mayor and City Clerk are
authorized to execute the Lease Purchase Agreement and any and all other documents necessary
to consummate the transaction contemplated by the Lease Purchase Agreement.
2. The amount of rental payments under the Lease Purchase Agreement shall not exceed a
principal component of $885,000 and the interest rate on the principal component shall not
exceed 5.15 %. The Mayor and City Clerk are hereby delegated the authority to establish the
amount of the principal component and the interest rate or rates on the interest component of the
rental payments, and the execution of the Lease Purchase Agreement by the Mayor and City
Clerk shall be conclusive evidence of the establishment and acceptance thereof by the City.
3. The Lease Purchase Agreement and related documents may include such modifications
thereof, deletions therefrom and additions thereto as may be necessary or appropriate and
approved by Briggs and Morgan, Professional Association, acting as Bond Counsel, prior to the
execution of the documents, and the execution of such documents by the appropriate officer or
officers of the City of Rosemount herein authorized shall be conclusive evidence of the approval
of such documents in accordance with the terms hereof.
4. In the event of the disability or resignation or other absence of the Mayor or City Clerk,
such other officers of the City who may act on their behalf shall, without further act or
authorization of the City Council, do all things and execute all instruments and documents
required under the Lease Purchase Agreement to be done or to be executed by such absent or
disabled officials.
1285609v1
ADOPTED this 15 day of May, 2001. RESOLUTION 2001 -
Cathy Busho, Mayor
ATTEST:
Linda J. Jentink, City Clerk
Motion by:
Voted in favor:
Voted Against:
Members Absent:
1285609vt
_ Seconded by
2
RESOLUTION 2001-
Exhibit 1
Item
Estimated Cost
Electric Ice Resurfacer
$ 84,100
Pumper Fire Truck
330,900
Single Axle Dump Truck
106,000
Tandem Axle Dump Truck
111,000
Grader
150,000
Tractor for Sidewalks & Ditches
103,000
Total Estimated Cost
$885,000
85 SEVENTH PLACE EAST, SUITE 100
SAINT PAUL, MN 55101 -2887
651.223.3000 FAX: 651.223.3002
E -MAIL: advisors @springsted.com
SPRINGSTED
Advisors to the Public Sector
May 14, 2001
Mr. Jeff May, Finance Director
City of Rosemount
2875 145 Street West
Rosemount, MN 55068 -4997
Dear Jeff:
The City of Rosemount requested that Springsted Incorporated request proposals from various
institutions regarding the lease financing of $885,000 of equipment. We prepared a Request for
Proposal and distributed it to six institutions on April 26, 2001. Those receiving a copy of the
request were:
• Firstar Bank of Minnesota, N.A., St. Paul, MN
• First State Bank of Rosemount, Rosemount, MN
Lease Finance Group, Eden Prairie, MN
• Rosemount National Bank, Rosemount, MN
• U.S. Bank National Association, Minneapolis, MN
• Wells Fargo Brokerage Services, LLP, Minneapolis, MN
Proposals were received until 12:00 noon on Friday, May 11. Three proposals were received.
A summary of those proposals is as follows:
Lessor All -In Rate Semi- Annual Lease Payment
U.S. Bank National Association 5.75% $61,054.58
Wells Fargo Brokerage Services 5.36% $58,250.67
Lease Finance Group 5.15% $57,673.29
We recommend that the City accept the proposal of Lease Finance Group, which represents
the lowest cost to the City over the 10 -year term of the equipment lease. Please note that their
proposal includes a clause that states the rate is locked through May 31, 2001, the presumed
closing date, and could adjust thereafter if that closing date extends beyond May 31. We have
discussed the timing of the closing with Bond Counsel and they are comfortable with being able
to complete closing on or before May 31.
The City may approve this transaction at their regular Council meeting on May 15, 2001.
Pending approval by the City Council, we will work with the transaction participants to
accomplish a closing by May 31, 2001.
CORPORATE OFFICE: SAINT PAUL, MN Visit our website at www.springsted.com
DES MOINES, IA . MILWAUKEE, WI • MINNEAPOLIS, MN OVERLAND PARK, KS • VIRGINIA BEACH, VA • WASHINGTON, DC
ti
1r City of Rosemount, Minnesota
May 14, 2001
Page 2
Attached to this letter are copies of the proposals received. If you have any questions
regarding this recommendation, please feel free to contact me. Thank you for allowing
Springsted to assist you in this process.
Sincerely,
Alan J. Erickson, Executive Vice President
Manager of Client Services
Enclosures
1EASERNANCEGROUP
7700 Equitable Olive, Suite 203
Eden Prairie, MN 55344
Proposal Prepared Expressly for
City of Rosemount
May 11, 2001
The following lease proposal is in response to your request for our Municipal Lease rates for personal
property bercin called the "Equipment ".
LESSEE: City of Rosemount
LESSOR: Lease Finance Group. Inc., or its assigns
EQUIPMEN T: Municipal Equipment
EQUIPMENT COST: $885,000.00
TERMS: Rate locked through May 31, 2001. 10 year term with semi -annual
payments beginning February 1, 2002.
ALL -IN RATE: 5.15% (fixed for 10 year term)
PURCHASE OPTION Lessee has option to purchase equipment at anytime throughout lease
(options listed on Exhibit B). Upon lease expiration, lessee shall own
the equipment.
P See Exhibit B
RENTAL ADJUSTMENTS: The effective lease rate contained within this proposal is tied to the
treasury index for the chosen term. If th•sre is an increase in this
treasury index at the time of lease commencement, the effective rate
fixed within the lease will be adjusted basi ; point for basis point for
such change. Rate is locked through May 31, 2001.
I appreciate the opportunity to submit this bid.. If you have any questions or need additional information,
please call me at 952562 - 1502. I look forward to working with you.
Best Regards,
LE FIN ANCE G UP, INC. Je�
Rob Liebl
Account Ex-mutive
1
Pmt
No.
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
FORM OF EXHIBIT B
SCHEDULE OF LEASE - PURCHASE RENTAL PAYMENTS
Rental Payments and Option to Purchase Schedule
Payment
Total
Date
Pa ment
02 -01 -02
57,673.29
08 -01 -02
57,673.29
02 -01 -03
57,673.29
08 -01 -03
57,673.29
02 -01 -04
57,673.29
08 -01 -04
57,673.29
02 -01 -05
57,673.29
08 -01 -05
57,673.29
02 -01 -06
57,673.29
08 -01 -06
57,673.29
02 -01 -07
57,673.29
08 -01 -07
57,673.29
02 -01 -08
57,673.29
08 -01 -08
57,673.29
02 -01 -09
57,673.29
08 -01 -09
57,673.29
02 -01 -10
57,673.29
08 -01 -10
57,673.29
02 -01 -11
57,673.29
08 -01 -11
57,673.29
02 -01 -12
1.00
Interest
Principal
Component
Component
30,730.04
26,943.25
22,094.96
35,578.33
21,178.82
36,494.47
20,239.09
37,434.20
19,275.16
38,398.13
18,286.40
39,386.89
17,272.19
40,401.10
16,231.86
41,441.43
15,164.75
42,508.54
14,070.15
43,603.14
12,947.37
44,725.92
11,795.68
45,877.61
10,614.33
47,058.96
9,402.56
48,270.73
8,159.59
49,513.70
6,884.61
50,788.68
5,576.80
52,096.49
4,235.32
53,437.97
2,859.29
54,814.00
1,447.83
56,225.46
0.00
1.00
Lease No.
Purchase
Option Price
873,720.80
836,798.38
798,999.05
760,301.99
720,685.87
680,128.87
638,608.64
596,102.31
552,586.45
508,037.09
462,429.68
415,7 9.09
367,939.60
319,004.88
268,907.96
217,621.23
165,116.44
111,364.67
56,336.29
1.00
0.00
Please Initial
Public Finance
May 10, 2001
Alan J. Erickson
Springsted Incorporated
85 East 7`h Place, Suite 100
St. Paul, MN 55101
Re: City of Rosemount
Dear Mr. Erickson:
The Public Finance Division of
Wells Fargo Brokerage Services, LLC is pleased to submit
the following lease - purchase proposal for your consideration:
Lessee:
City of Rosemount, Minnesota
Lessor:
Wells Fargo Brokerage Services, LLC /Public Finance
Division
Equipment/Project:
Various equipment
Finance Amount:
5885,000
Anticipated Closing Date:
May 31, 2001
Financing Type:
Tax- exempt, annual appropriation lease- purchase
Lease Term Options:
10 years
Lease Payments:
20 semi - annual payments of $58,250.67, in arrears
Interest Rate to Lessee:
5.36%
Other fees, closing costs:
None
Escrow Funding Option:
At closing, lease proceeds could be deposited into an
escrow account from which payments would be
disbursed as required. The balance in the escrow
account, beginning at closing, would earn interest at
the money market rate and said interest would be paid
(or compounded) to the Lessee. If the "draw
schedule" on the escrow fund made it feasible, longer
term, fixed rate investments could be made with all or
City of Rosemount
May 10, 2001
Page 2
Prepayment Option:
Debt Service Reserve:
Trustee:
Bond Ratings/Bond Insurance:
Net Transaction:
Annual Appropriation Lease
Insurance:
Purchase Option:
Tax Status /Legal:
Lease Rate:
Credit Information:
part of the escrow fund. There is no charge for this
arrangement.
The lease can be prepaid in full on any payment date
after February 1, 2009 without penalty.
None
Not Required
Not Required
This is a net transaction whereby insurance,
maintenance, and any applicable taxes are the
responsibility of the Lessee. All manufacturers'
guarantees and warranties will be passed on to the
Lessee.
The lease payments are subject to annual
appropriation of funds by Lessee.
Lessor requires personal property damage insurance
equal to the cost of the equipment and also minimum
liability insurance of a combined single limit of
$500,000. Lessor must be named additional insured.
$1 at end of term.
This lease is subject to the Lessee being qualified as a
governmental entity or "political subdivision" within
the meaning of Section 103(a) of the Internal
Revenue Code of 1,986 as amended. Lessee agrees to
cooperate with Lessor in providing evidence as
deemed necessary or desirable by Lessor to
substantiate Lessee's and this transaction's tax - exempt
status, including Lessee providing an attorney's
opinion. It is assumed that the transaction will be
"bank- qualified" under the $10 million small issuer
exemption as defined in the Tax Reform Act of 1986.
The interest rate quoted is valid until May 16, 2001.
As requested by Lessor.
ti
City of Rosemount
May 10, 2001
Page 3
Proposal Only: This is a proposal only and does not represent a
commitment to lease. It is subject to approval by
Lessor's Credit Committee.
Thank you for the opportunity to make this proposal. Please do not hesitate to contact me
if you have any questions.
Yours sincerely,
Cynthia S. Chamberlain
Vice President
Public Finance Department
Wells Fargo Brokerage Services, LLC
Enclosures
Wells Fargo Public Finance (WFPF) includes departments of Wells Fargo Brokerage Services, LLC (member
NASD /SIPC /Chicago Stock Exchange) and Wells Fargo Bank, N.A., brokerage and bank affiliates of Wells
Fargo & Company. WFPF has entered into arrangements with its affiliates under which WFPF may pay
compensation to them of up to 25% of its net fee for referrals and assistance in finding, soliciting, and
obtaining business. Non - deposit investment products offered by Wells Fargo brokerage and bank affiliates
are not FDIC insured, subject to investment risk, and not guaranteed by a bank unless otherwise specified.
Equipment
Rosemount
Exhibit A
Costs Funded Payment Rate
$885,000.00 5.360%
20 Payments
2 per year
5.360% Rate
Level Payment
$58,250.67
Fctr= .06582
Closing Fees
$0.001
Average Life
5.9 years
70.86 months
After Payment
Termination
Value
Commencement: May 31, 2001
Closin Date: Ma 31, 2001
Pmt
Total Payment
Due
Interest
Payment Due
Principal
p
Payment Due
After Payment
Principal
Balance
After Payment
Termination
Value
Payment Due
Date
$885,000.00
May 31, 2001
1
$58,250.67
$31,755.77
$26,494.90
$858,505.10
$876,485.54
Feb 1, 2002
2
$58,250.67
$23,007.94
$35,242.73
$823,262.36
$839,708.77
Aug 1, 2002
3
$58,250.67
$22,063.43
$36,187.24.
$787,075.12
$802,030.97
Feb 1, 2003
4
$58,250.67
$21,093.61
$37,157.06
$749,918.07
$763,430.05
Aug 1, 2003
5
$58,250.67
$20,097.80
$38,152.87
$711,765.20
$723,883.42
Feb 1, 2004
6
$58,250.67
$19,075.31
$39,175.36
$672,589.84
$683,367.89
Aug 1, 2004
7
$58,250.67
$18,025.41
$40,225.26
$632,364.58
$641,859.74
Feb 1, 2005
8
$58,250.67
$16,947.37
$41,303.30
$591,061.28
$599,334.63
Aug 1, 2005
9
$58,250.67
$15,840.44
$42,410.23
$548,651.05
$555,767.66
Feb 1, 2006
10
$58,250.67
$14,703.85
$43,546.82
$505,104.23
$511,133.30
Aug 1, 2006
11
$58,250.67
$13,536.79
$44,713.88
$460,390.35
$465,405.39
Feb 1, 2007
12 :
$58,250.67
$12,338.46
$45,912.21
$414,478.14
$418,557.15
Aug 1, 2007
13
$58,250.67
$11,108.01
$47,142.66
$367,335.49
$370,561.13
Feb 1, 2008
14
$58,250.67
$9,844.59
$48,406.08
$318,929.41
$321,389.21
Aug 1, 2008
15
$58,250.67
$8,547.31
$49,703.36
$269,226.05
$271,012.58
Feb 1, 2009
16
$58,250.67
$7,215.26
$51,035.41
$218,190.63
$219,401.72
Aug 1, 2009
17
$58,250.67
$5,847.51
$52,403.16
$165,787.47
$166,526.39
Feb 1, 2010
18
$58,250.67
$4,443.10
$53,807.57
$111;979.91
$112,355.61
Aug 1, 2010
19
$58,250.67
$3,001.06
$55,249.61
$56,730.30
$56,857.66
Feb 1, 2011
20
$58,250.67
$1,520.37
$56,730.30
$0.00
$1.00
Aug 1, 2011
G:\ LEASE \SCHEDULE \lrosemount.xlsl Lease
5/9/014:38 PM Wells Fargo Public Finance, LLC
t
rt MMbank
Marquette Avenue Office
90 South Sixth Street
Minneapolis, MN 55402
May 11, 2001
Mr. Alan Erickson
Springsted Incorporated
85 East 7"' Place
St. Paul MN 55101
Re: Rosemount Equipment Lease
Dear Mr. Erickson:
Thank you for the opportunity to submit a proposal for the Equipment Lease for the City of
Rosemount in the amount of 5885,000. Enclosed is a Terms Sheet, a payment schedule and
proposed Municipal Lease Document. The proposed structure assumes the borrowing to be Bank
Qualified and is designed to mirror, the structure suggested. We would be happy to discuss our
proposal at your earliest convenience.
Thank you so much again for this opportunity. I can be reached at 612 - 973 -8044.
Sincerely,
1 '
Dennis Sonnek
Vice President
ti
May 9, 2001
City of Rosemount MN
Equipment Lease
TERMS SHEET
Any commitment to lend is subject to formal credit approval, acceptable due diligence and acceptable documentation, all of
which are at the sole option of U.S. Bank
Borrower:
City of Rosemount, MN
Bank
U.S. Bank National Association, Minneapolis, Minnesota
Purpose
Purchase various equipment to be used in its Public Works, Fire and
Ice Arena
Facility
Lease Agreement
Amount
$885,000
Term
Ten years, semi - annual principal and interest payments due February
1 and August 12002 through 2011. Prepayment is allowed as early
as February 1, 2009 and any regular payment date thereafter. Level
payment schedule of $61,054.58 is attached.
Security
All subject equipment. Annual appropriation of the City of
Rosemount. Anticipated to be paid from Ad Valorem Tax levy. No
debt service fund is required.
Interest rate
Tax Exempt, Bank Qualified effective rate of 5.75 %
Reporting
Annual audited financial statements on the City to be received within
120 days of year -end.
Documentation
Opinion of Counsel as to the validity and tax - exempt status of
interest on the borrowing should accompany the executed
documents.
Governing Law:
Minnesota
Commitment:
The above terms are not meant to be all - inclusive of what a final
commitment and actual loan documents may look like.
City of Rosemount
$855,000 Equipment Lease
Funding date May 31, 2001
Assumes an 'All In'
Bank Qualified, Interest rate of 5.75%
Payment Date
Payment
1- Feb -02
$
61,054.58
1- Aug -02
$
61,054.58
1- Feb -03
$
61,054.58
1- Aug -03
$
61,054.58
1- Feb -04
$
61,054.58
1- Aug -04
$
61,054.58
1- Feb -05
$
61,054.58
1- Aug -05
$
61,054.58
1- Feb -06
$
61,054.58
1- Aug -06
$
61,054.58
1- Feb -07
$
61,054.58
1- Aug -07
$
61,054.58
1- Feb -08
$
61,054.58
1- Aug -08
$
61,054.58
1- Feb -09
$
61,054.58
1- Aug -09
$
61,054.58
1- Feb -10
$
61,054.58
1- Aug -10
$
61,054.58
i- Feb -11
$
61,054.58
1- Aug -11
$
61,054.58
2001 0936 FROM TO 96514235203 P.02
s
Metropolitan Council
Working for the Region, Planning for the Future
Environmental Services
Briefing to City Councils & Staff
on the
Rosemount/Empire Master Plan
Wednesday, May 23, 2.001
7:3 0 p.m.
Lakeville City Hall — Council Chambers
20195 Holyoke Avenue
Lakeville, MN
A presentation will be given for city council members and city staff of Apple Valley,
Farmington, Lakeville, Roseville and Empire Township, about the Rosemount/Empire
Wastewater Treatment Plant Master Plan, at 7 :30 p.m. on May 23. At 7:00 p.m.
Metropolitan Council Environmental Services (MCES) staff will be available if you want
to view'various options prior to the presentation at 7:30 p.m. We will also be available
following the meeting. We hope you can attend.
Wastewater treatment plants serving your communities must be 'expanded by 2005 to
accommodate current growth forecasts. This plan identifies how wastewater service will
be provided by 2005 as part of a long -term plan to serve your communities for the next 50
years. Over the past 10 months, MCES has held many meetings with various focus
groups related to this project. We have taken the information shared at these meetings into
account in our recommendation. We would like to have the opportunity to explain the
altemative MCES staff recommends, and receive your comments and questions on our
recommended alternative as well as other alternatives.
230 East Fifth Street St. Paul. Minnesota 55101 -1633 (612) 222 -8423 Fax 229 -2183 TDD/n Y 229 -3760
Art ffktrt:! GDaortuncW llnDfoytr
Page 1 of 1
Burtjom
From: LeFevere, Charlie L. [clefevere @Kennedy - Graven.com]
Sent: Wednesday, May 09, 2001 10:11 AM
To: Tom Burt (E -mail)
Tom,
You have provided me with a letter to Ms. Darlene Terry from Mr. Michael Kowski of MNDOT in which
Mn/DOT acknowledges that there is a permit from Mn /DOT for the accesses currently in place at Ms. Terry's
site. You have asked whether this has any effect on the ability of the City or Mn /DOT to close or alter those
access points.
The fact that the access points have been permitted simply means that the driveways are not illegal. The
permit does not confer any right or entitlement on the landowner to continue those access points at the same
location. The regulation of the access points remains subject to the police power of the state, exercised
through the appropriate road authority, and these access points may be closed or altered in the interest of
public safety.
The owners of property adjacent to a roadway have the right to reasonable access to it. However an owner's
rights are not violated by restricting access unless no reasonable access to their property remains, or as it is
sometimes expressed, that access from the road to the property is made unreasonably circuitous. Restricting
the number of curb cuts from three to two on a site such as this is clearly not depriving it of access.
I called Mr. Kowski to discuss his letter. He agreed that the permit does not confer any rights to maintain
access points in the same number, or location. The permits were granted in the 60s. As commonly occurs,
the roadway, the use of the roadway, and the use of adjacent properties changes over time, and closing
access points in a case such as this is a commonplace occurrence.
Charlie
5/14/2001