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Home My WebLink About6.f. Settlement Agreement with Shafer Contracting Co.CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: AUGUST 15, 2000 AGENDA: SETTLEMENT AGREEMENT WITH SHAFER AGENDA SECTION: CONTRACTING CO., INC. CONSENT PREPARED BY: THOMAS D. BURT, CITY ADMINISTRATOR AGEN4 * 6 , ATTACHMENTS: SETTLEMENT AGREEMENT APPROVED BY The agreement has been signed by both Shafer and Johnson and is ready for the City to sign off on. This agreement has not changed since the last time the Council reviewed it. RECOMMENDED ACTION: MOTION to approve the settlement agreement of August 4 between Shafer Contracting Co., Inc., and the City of Rosemount with the signature of Mayor Busho. COUNCIL ACTION: ,0 8/09/00 09:39 F AX 612 373 0929 Greene Espel Z002 STATE OF &iIIYNESOTA DISTRICT COURT COUNTY OF DAKOTA FIRST JUDICIAL DISTRICT Shafer Contracting Co., Inc., Court File No. 1 9-C-99-009 Plaintiff VS. SETTLEMENT AGREEMENT City of Rosemount, a municipal corporation, Defendant This Settlement Agreement is made this I '" "iYay o , 2000, by and between Shafer Contracting Co., Inc. ( "Shafer "), the City of Rosemount, Minnesota ( "the City "), and Lance J. Johnson ( " Johnson ") (collectively the "Parties ") upon the following terms and conditions: 1. Johnson is the owner of two parcels of land which comprise approximately 93 2 acres of property located in the City of Rosemount with PID numbers 34- 01400- 010 -37 and 34- 01400 - 013 -09 (the "Property"). The Property is in an "agricultural" zoning district and is guided as "agricultural" in the City's Comprehensive Land Use Plan. Shafer claims that sand and gravel reserves are located throughout the Property- The parties acknowledge and agree that mining activities have occurred on a portion of the Property since the 1970s. Johnson and his designated operators have conducted sand and gravel mining activities on the eastern portion of the Property, approximately 33 acres, since at least 1982, and intended to mine as much of the Property as was permitted under then- existing ordinances. Pursuant 08 0 9: 39 FA X 612 3 73 0929 Greene Espel 12j003 to the requirements of the City Ordinances, the City issued a mining permit to Johnson in 1982 and has renewed Johnson's permit up through the present. The permits issued by the City, as requested by Johnson, have pertained to mining activities occurring on the eastern portion of the Property, approximately 33 acres. To date, Johnson's mining activities have not extended to the western portion of the Property and Johnson has not requested a mining permit for mining activities on the western portion of the Property, although it has been his expressed intent to ultimately mine that portion. 3. In 1989, the City enacted Ordinance B -- City of Rosemount Zoning Ordinance ( "Ordinance B "). Except for a limited area not including the Property, Ordinance B eliminated mining as a "permitted use" in the City's Agricultural districts. The parties acknowledge and agree that the mining activities on the Johnson Property since 1989 have been conducted as a lawful nonconforming use in the City of Rosemount. 4. Since the 1989 ordinance amendment, Johnson has continued to apply for, and the City has continued to issue, renewal mining permits to Johnson pursuant to the requirements and standards set forth in the Cib/s Zoning Ordinances governing mining permits. Most recently, on January 20, 2000, Johnson received a mining permit issued by the City for the currently active mining phase of the eastern 33 acres of the subject property. 5. In 1998, Shafer entered into an agreement with Johnson for the purchase of the Property. The Parties acknowledge and agree that Shafer, as Johnson's transferee, stands in the place of its predecessor concerning rights to mine the Property as a 2 — .08/ 0 9/00 0 9:39 FA 612 373 0929 Greene Espel Q004 lawful nonconforming use. Shafer has developed a mining plan under which it proposes to conduct phased mining activities across the Property. The City agrees A Fa to review Shafer's mining plan in connection with a mining permit application and/or amen ded permit application that will be presented to the City. Shafer, as the proposed purchaser of the Property, has requested that the City acknowledge that the "Diminishing Assets Doctrine," as that doctrine is defined in Hawkins v Talbot, 248 Minn. 549, 80 N.W.2d 863 (195 applies to the Property. The City of Rosemount recognizes Hawkins v. Talbot to be the governing law in the State of Minnesota at this time and that it applies to Shafer's mining of the Property. The Parties acknowledge that changes or modifications in the statutory and common law, including but not limited to the "Diminishing Asset Doctrine" as expressed in Hawkins v. Talbot, may occur in the future that could affect the legal status of the sand and gravel mining activities on the Property. However, by this Agreement, the Parties reserve all rights and do not intend to waive any rights to claim that such changes in the law do or do not affect ruining operations on the Property. 8. The Parties agree that Shafer will abide by current requirements and licensing/permitting standards set forth in the City Ordinances governing mining operations. The Parties acknowledge that the City may, in the future, endeavor to change or amend such requirements, but the Parties reserve all rights and do not intend to waive any riglit, to claim that such changes or amendments are 3 0 8/09 /0 0 09: FAX 612 3 73 0929 Greene Espel_ [Moos applicable or are not applicable to the continued mining operations on the Property, or waive any right to enforce or challenge such changed requirements or standards. Dated: - 7 / __ SHAFER CONTRACTING CO., INC. By Dated: , 2000 CITY OF ROSEMOUNT By Its Dated: 7J 2000 LANCE J. 39IMS ::ODMA\PCDOCS\FBDOCS 1\23U386\Z 4