Loading...
HomeMy WebLinkAbout6.h. Assessment Agreement between the City of Rosemount and Symnabdre Properties LLC EXECUTIVE SUMMARY City Council Meeting: March 19, 2019 AGENDA ITEM: Assessment Agreement between the City of Rosemount and Symnabdre Properties LLC AGENDA SECTION: Consent PREPARED BY: Kim Lindquist, Community Development Director AGENDA NO. 6.h. ATTACHMENTS: Assessment Agreement APPROVED BY: LJM RECOMMENDED ACTION: Motion to Approve Assessment Agreement ISSUE As part of the purchase agreement between the City of Rosemount and Symnabdre properties LLC there was a provision to assess area charges associated with development of the site. Additionally, the area charges are currently only assessed to ½ of the total site, with the remainder to be paid when the property is further developed, either through expansion of this project or a new development project is approved. With the closing scheduled for March 22, the City Council is being asked to approve the assessment agreement which memorializes the agreement. The assessment contains the ½ of the trunk area charges, the offsite stormwater area charges, with payment for the water and sanitary sewer connection charges to be paid at issuance of a building permit. The Council may recall that part of the arrangement means that the buyer is responsible for the minor clean up needed on the site. RECOMMENDATION Staff recommends the City Council approve the attached assessment agreement between city of Rosemount and Symnabdre Properties LLC for the property at Canada Circle. 1 ASSESSMENT AGREEMENT THIS AGREEMENT is made on or as of the ____ day of _______, 2019, by and between the City of Rosemount, a Minnesota municipal corporation (the “City”) and Symnabdre properties LLC, a Minnesota limited liability company (the “Redeveloper”). WITNESSETH: WHEREAS, the City and Redeveloper have entered into a Purchase Agreement, dated April 17, 2018; as amended by a First Amendment thereto dated July 13, 2018; by a Second Amendment thereto dated October 12, 2018; and by a Third Amendment thereto dated as of January 15, 2019 (as so amended, the “Purchase Agreement”), pursuant to which the City and the Rosemount Port Authority (the “Authority”) are to sell to Redeveloper, subject to the conditions contained therein, certain property, owned in part by the City and in part by the Authority, as legally described in Exhibit A hereto (the “Property”); and WHEREAS, Redeveloper has submitted plans and has obtained approval for development of the Property (the “Development”); and WHEREAS, the City will be constructing, installing and connecting certain utilities for the benefit of the Property and the Development (the “Utility Improvements”), the cost of which will be assessed against the Property as set forth below; and WHEREAS, pursuant to the Purchase Agreement, the City and the Redeveloper are obligated to enter into an assessment agreement, according to the terms set forth in said Purchase Agreement; and WHEREAS, the City and the Redeveloper have reached an agreement under which the City shall reduce the current assessment charges related to the Utility Improvements, as more fully set forth below, in exchange for the Redeveloper’s consent and agreement to the terms herein; NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 2 1. Project Charges. Redeveloper agrees to pay one-half of the following area charges and stormwater connection fees, all off-site ponding and the water connection charge for a 1.5’ meter as calculated by the City, according to the terms set forth below, and further agrees that the remaining one-half of said charges shall be assessed to the Property, or some portion thereof, upon the earlier of any additional development of the Property (beyond the Development), including but not limited to expansion of the Development building and/or parking lot, construction of new building(s) or parking lot(s), or subdivision of the Property (the “Deferred Assessment”): Area Charges – 3.751 Acres: Stormwater @ $6,865 per acre; total charge = $25,750.62; Redeveloper share = $12,875.31; Water @ $6,500; total charge = $24,381.50; Redeveloper share = $12,190.75; Sanitary Sewer @ $1,075; total charge = $4,032.33; Redeveloper share = $2,016.17; Stormwater Connection @ $2,270; total charge = 8,514.77; Redeveloper share = $4,257.39 Off-Site Ponding $33,822.77 Water Meter/Water Connection Charge for 1.5’ meter $14,700 Total Redeveloper Cost for Area Charges, Stormwater Connection, Off site ponding, Water Connection Charge = $79,862.39 Total Deferred Assessment amount = $79,862.39 2. Off-Site Ponding. Redeveloper agrees to pay the full cost of off-site ponding charges, which amount to a total cost of $33,822.77 which will be assessed as noted above. 3. Water Meter/Water Connection Charge. Redeveloper agrees to pay the water meter cost for a 1.5” water meter of $14,700 which will be assessed as noted above. Should the water meter size change based on development requirements, the remaining fee or credit will be reconciled at the time of issuance of a building permit. The final Water Meter fee will be commensurate with the new meter size and based upon the Council-approved fee list. 4. Sewer Availability Charges. Redeveloper agrees to pay all sewer availability fees associated with the Development, as determined by the Metropolitan Council, at the time of issuance of the building permit. The 2019 SAC fee is $3685. 5. Term. The assessment costs set forth in this agreement (the “Assessment”) shall be paid in equal installments, without interest, on an annual basis for a period of Ten (10) years (the “Term”). 6. This Agreement shall be promptly recorded by the City. The City shall pay all costs of recording. 7. Neither the preambles nor provisions of this Agreement are intended to, nor shall they be construed as, modifying the terms of the Purchase Agreement between the City, Authority and the Redeveloper. 3 8. The Redeveloper, on behalf of itself, its successors and assigns, acknowledges the benefit to the Property and all lots within a future subdivision (if any) of the Property and hereby consents to the Assessment and the Deferred Assessment and waives any right to a hearing, notice of hearing and all rights to appeal either the Assessment or Deferred Assessment under Minnesota Statutes, Chapter 429 or other applicable authorities, including but not limited to the right to challenge whether the increase in fair market value resulting from the Project is at least equal to the Assessment and that such increase in fair market value is a special benefit to the Property. The Redeveloper, on behalf of itself, its successors and assigns, further waives any requirements of Minnesota Statutes, Chapter 429 with respect to the adoption or levying of the Assessment and Deferred Assessment, to the extent that those requirements are not met. 9. Nothing in this Agreement shall affect the City’s ability to assess for future additional utility charges required by any additional development or subdivision of the Property. 10. This Agreement shall run with the land described herein and shall inure to the benefit of and be binding upon the successors and assigns of the parties. 11. Each of the parties has authority to enter into this Agreement and to take all actions required of it, and has taken all actions necessary to authorize the execution and delivery of this Agreement. 12. In the event any provision of this Agreement shall be held invalid and unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 13. The parties hereto agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements, amendments and modifications hereto, and such further instruments as may reasonably be required for correcting any inadequate, or incorrect, or amended description of the Property or the Utility Improvements or for carrying out the expressed intention of this Agreement, including, without limitation, any further instruments required to delete from the description of the Property such part or parts as may be included within a separate assessment agreement. 14. This Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 15. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 16. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. [Remainder of page intentionally left blank; signature pages to follow.] 4 IN WITNESS WHEREOF, the City and the Redeveloper have caused this Assessment Agreement to be executed in their names and on their behalf by their duly authorized representatives all as of the date set forth above. CITY OF ROSEMOUNT By William Droste, its Mayor By Erin Fasbender, its City Clerk STATE OF MINNESOTA ) ) SS. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ____ day of _________, 2019, by William Droste, the Mayor of the City of Rosemount, a Minnesota municipal corporation, on behalf of the City. Notary Public STATE OF MINNESOTA ) ) SS. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ____ day of __________, 2019, by Erin Fasbender, the City Clerk of the City of Rosemount, a Minnesota municipal corporation, on behalf of the City. Notary Public 5 SYMNABDRE PROPERTIES LLC By Nathan A. Bry, its President STATE OF MINNESOTA ) ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this _____ day of ______________, 2019, by Nathan A. Bry, the President of Symnabdre properties LLC, a Minnesota limited liability company, in his authorized capacity on behalf of the company. Notary Public This instrument was drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337-9300 6 EXHIBIT A OF ASSESSMENT AGREEMENT Legal Description of Property Lot 1, Block 1, CANADA CIRCLE, Dakota County, Minnesota.