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HomeMy WebLinkAbout7.a. Autumn Path Extension Project, City Project 2019-07 Assessment HearingI:\City Clerk\Agenda Items\Approved Items\7.a. Autumn Path Extension Project, City Project 2019-07 Assessment Hearing.docx EXECUTIVE SUMMARY City Council Regular Meeting: October 5, 2020 AGENDA ITEM: Autumn Path Extension Project, City Project 2019-07 Assessment Hearing AGENDA SECTION: Public Hearing PREPARED BY: Brian Erickson, PE, Director of Public Works/City Engineer Stephanie Smith, PE, Assistant City Engineer AGENDA NO. 7.a. ATTACHMENTS: Resolution, Assessment Roll, Property Owner Letter, Deferral Agreement APPROVED BY: LJM RECOMMENDED ACTION: Motion to continue the Public Hearing on Assessments for Autumn Path Extension, City Project 2019-07 until October 20, 2020. BACKGROUND The Autumn Path Improvement Project, City Project 2019-07, consists of construction of a 42-foot wide asphalt collector roadway with curb and gutter. Pedestrian facilities will include a trail on the east side and sidewalk on the west side of the road. Storm pipe will be constructed to ponds within the Bella Vista development. Raw and potable watermain will be installed along the road along with some sanitary sewer. On December 3, 2019, the property owners attended the improvement hearing and voiced their concerns. Staff has provided an agreement to the property owners to execute if they would like to defer the assessed amount for 10 years interest free, or until the subdivision of the property, whichever occurs first. On May 19, 2020, the Rosemount City Council awarded the contract for this project. The City received a letter dated June 12, 2020 on behalf of the owners of the property proposed for assessment, which disputes the special benefit to their property. To obtain more information to present to the concerned property owners, the Council continued the assessment hearing to the September 15, 2020 meeting. At that meeting the hearing was again continued to October 5, 2020 in order to allow the property owners to make a decision regarding the agreement. After the September 15, 2020 Council meeting, staff sent out letters with a copy of the assessment agreement. However, due to a mail delay the agreements were not received by all property owners until the late September. As of October 2, 2020, staff has received signature confirmation from 6 of the 7 property owners regarding the assessment agreement. In order to allow time for the final signature page to be provided, staff is recommending that the assessment hearing be continued one final time to October 20, 2020. This final continuation will allow for either receipt of the last signature or closing of the hearing and requesting Council levy the assessments as presented. 2 COSTS & FUNDING The estimated total project cost is $1,963,172.90. This amount includes 5% for contingency and 25% for incidentals such as engineering, legal, financing and administrative costs. The cost by improvement type is shown in the table below. Construction Cost Contingency (5%) Indirect (25%) Total Street Improvements $991,787.50 $49,589.38 $247,946.88 $1,289,323.75 Stormwater $195,224.00 $9,761.20 $48,806.00 $253,791.20 Sanitary Sewer $55,403.50 $2,770.18 $13,850.88 $72,024.55 Water $267,718.00 $13,385.90 $66,929.50 $348,033.40 Total $1,963,172.90 The funding anticipated for the project is shown in the table below. The street improvements will be funded by developer fees and assessment of abutting property. The City used a restricted special benefit appraisal of the benefitting property to assist with determination of the assessment amount. That benefit appraisal was updated to an unrestricted version and it confirms the initial determination of special benefit. Utility work would be funded by the respective utility core funds. PROJECT FUNDING ESTIMATE Developer Fees (to be collected with Bella Vista subdivisions) $644,661.88 Special Assessment (PID 34-02200-25-010) $644,661.88 Sanitary Core Fund $72,024.55 Water Core Fund $348,033.40 Storm Core Fund $253,791.20 TOTAL $1,963,1722.90 RECOMENDATION Staff recommends Council continue the public hearing on assessments until October 20, 2020 to allow for additional time to receive signatures on the proposed assessment agreement. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2020 – 109 A RESOLUTION ADOPTING THE ASSESSMENT ROLL FOR AUTUMN PATH EXTENSION, CITY PROJECT 2019-07 WHEREAS, pursuant to proper notice duly given as required by law, the council has met and heard and passed upon all objections to the proposed assessment for Autumn Path Extension, City Project 2019-07, the improvement of Autumn Path from Bonaire Path to approximately 2600 feet north of Bonaire Path. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Rosemount, Minnesota: 1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessment shall be payable in equal annual installments extending over a period of 10 years, the first of the installments to be payable on or before the first Monday in January 2021, and shall bear interest at the rate of 3.45 percent per annum from the date of the adoption of this assessment resolution. To the first installment shall be added interest on the entire assessment from the date of this resolution until December 31, 2020. To each subsequent installment, when due, shall be added interest for one year on all unpaid installments. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the county auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the city treasurer, except that no interest shall be charged if the entire assessment is paid within 30 days; and the owner may, at any time thereafter, pay to the city treasurer the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. 4. On October 31, 2020, the City Clerk shall transmit a certified duplicate of this assessment to the county auditor to be extended on the property tax lists of the county. Such assessments shall be collected and paid over in the same manner as other municipal taxes. ADOPTED this 5th day of October, 2020 William H. Droste, Mayor ATTEST: Erin Fasbender, City Clerk FINAL ASSESSMENT ROLL Autumn Path Extension - City Project 2019-07 Parcel #PID Owner Site Address Owner Mailing Address Owner City, State, Zip Proposed Assessment Notes 1 344746000010 John E McMenomy 1283 Bonaire Path W 1283 Bonaire Path W Rosemount MN 55068 $644,661.88 Rate Based on Special Benefit Appraisal G:\ENGPROJ\2019-07 Autumn Path\Assessments\20200915 Final Assessment Roll 1 DOCSOPEN\RS220\403\675474.v1-9/16/20 ASSESSMENT AGREEMENT THIS ASSESSMENT AGREEMENT is by and between the City of Rosemount, a Minnesota municipal corporation (the “City”) and John E. and Rita McMenomy; Michael F. and Dianne McMenomy; Elizabeth A. McMenomy as trustee for the Trust Agreement for Elizabeth A. McMenomy; Terrance and Jennifer McMenomy; Robert and Tracy McMenomy; Daniel and Deborah McMenomy; William McMenomy (collectively “Owners”). RECITALS WHEREAS, the City intends to install Autumn Path, City Project 2019-07 (the “Project”) which includes installation of a paved collector road of approximately 1,600 feet; and WHEREAS, the City intends to pay for the Project through special assessments, and WHEREAS, the properties benefited by the Project include a 79.25-acre property owned by the Owner, located at 1283 Bonaire Path W. (PID 34-47460-00-010) and legally described on Exhibit A (the “Property”); and WHEREAS, based upon its feasibility study, the City desires to assess the Property $644,661.88 Dollars (the “Assessment”). WHEREAS, the Property is currently agriculturally zoned, located inside the Metropolitan Urban Service Area (MUSA) and developed with a single-family home; and WHEREAS, the Project shall benefit the Property by no less than $644,661.88; and WHEREAS, the parties wish to memorialize the terms of their agreement to delay payment of the Assessment on the Property. NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the parties agree as follow: 2 DOCSOPEN\RS220\403\675474.v1-9/16/20 AGREEMENT 1. The above-stated recitals are incorporated by reference into this Agreement. 2. Payment of the Assessment, without interest accrual, is due ten (10) years from the effective date of this Agreement or upon development of the Property, whichever occurs first. For purposes of this Agreement, “d evelopment ” means any application by Owner, or Owner’s agents or representatives, for a lot division, plat or building permit related to the Property. The effective date of the Agreement is the date that it is approved by the Rosemount City Council. 3. The Owner, on behalf of himself, and his 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. Owner waives any right to a hearing, notice of hearing, and all rights to appeal the 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. 4. Nothing in this Agreement shall affect the City’s ability to assess for future additional charges required by any additional development or subdivision of the Property. 5. If the Owner, or his successors or assigns, violate s any of the covenants and agreements contained in this Agreement, the City may seek any legal remedy that it is otherwise entitled to under law, including but not limited to the option to commence a legal action for monetary damages or for specific performance. The Owner, on behalf of himself, and his successors and assigns, agrees that the City shall be entitled to its administrative costs, legal costs, and reasonable attorney's fees in connection with said action, provided that the City is successful in such action. 6. Nothing in this Agreement is intended to affect any other payments that might be due to the City, or any other governmental entity, at the time that the Property is platted or developed. 7. 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. 8. The City will record this Agreement and pay all costs of recording. 9. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 10. The parties acknowledge that they have been represented by counsel in connection with the execution of this Agreement , or have cho sen not to consult with counsel, and intend that no rules construing provisions of this Agreement against the drafter will be applied. 3 DOCSOPEN\RS220\403\675474.v1-9/16/20 11. In the event any provision of this Agreement is held to be invalid and unenforceable by any court of competent jurisdiction, such holding will not invalidate or render unenforceable any other provision hereof. 12. This Agreement may not be amended except by a writing authorized and executed by all parties. 13. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. [Re mainder of page intentionally left blank; signature pages to follow.] 4 DOCSOPEN\RS220\403\675474.v1-9/16/20 IN WITNESS WHEREOF, the City and Owners have caused this Agreement to be executed in their names and on their behalf by their duly authorized representatives: OWNER By: ___________________________ By: __________________________ John E. McMenomy Rita McMenomy Dated: ________________________ Dated: ________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2020, by John E. McMenomy, a married person, on behalf of Owner. ___________________________ Notary Public NOTARY STAMP OR SEAL STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2020, by Rita McMenomy, a married person, on behalf of Owner. ___________________________ Notary Public NOTARY STAMP OR SEAL 5 DOCSOPEN\RS220\403\675474.v1-9/16/20 OWNER By: __________________________ By: __________________________ Michael F. McMenomy Dianne McMenomy Dated: ________________________ Dated: ________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2020, by Michael F. McMenomy, a married person, on behalf of Owner. ___________________________ Notary Public NOTARY STAMP OR SEAL STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2020, by Dianne McMenomy, a married person, on behalf of Owner. ___________________________ Notary Public NOTARY STAMP OR SEAL 6 DOCSOPEN\RS220\403\675474.v1-9/16/20 OWNER By: __________________________ Elizabeth A. McMenomy, as trustee of the Elizabeth A. McMenomy Trust Dated: ________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2020, by Elizabeth A. McMenomy, as trustee of the Elizabeth A. McMenomy Trust , on behalf of Owner. ___________________________ Notary Public NOTARY STAMP OR SEAL 7 DOCSOPEN\RS220\403\675474.v1-9/16/20 OWNER By: __________________________ By: __________________________ Terrance McMenomy Jennifer McMenomy Dated: ________________________ Dated: ________________________ STATE OF _____________ ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2020, by Terrance McMenomy, a married person, on behalf of Owner. ___________________________ Notary Public NOTARY STAMP OR SEAL STATE OF _____________ ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2020, by Jennifer McMenomy, a married person, on behalf of Owner. ___________________________ Notary Public NOTARY STAMP OR SEAL 8 DOCSOPEN\RS220\403\675474.v1-9/16/20 OWNER By: __________________________ By: __________________________ Robert McMenomy Tracy McMenomy Dated: ________________________ Dated: ________________________ STATE OF _____________ ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2020, by Robert McMenomy, a married person, on behalf of Owner. ___________________________ Notary Public NOTARY STAMP OR SEAL STATE OF _____________ ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2020, by Tracy McMenomy, a married person, on behalf of Owner. ___________________________ Notary Public NOTARY STAMP OR SEAL 9 DOCSOPEN\RS220\403\675474.v1-9/16/20 OWNER By: __________________________ By: __________________________ Daniel McMenomy Deborah McMenomy Dated: ________________________ Dated: ________________________ STATE OF _____________ ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2020, by Daniel McMenomy, a married person, on behalf of Owner. ___________________________ Notary Public NOTARY STAMP OR SEAL STATE OF _____________ ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2020, by Deborah McMenomy, a married person, on behalf of Owner. ___________________________ Notary Public NOTARY STAMP OR SEAL 10 DOCSOPEN\RS220\403\675474.v1-9/16/20 OWNER By: __________________________ William McMenomy Dated: ________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2020, by William McMenomy, a ___________________ person, on behalf of Owner. ___________________________ Notary Public NOTARY STAMP OR SEAL 11 DOCSOPEN\RS220\403\675474.v1-9/16/20 CITY OF ROSEMOUNT By: ____________________________ William Droste, its Mayor Dated: _________________________ By: ____________________________ Erin Fasbender, its City Clerk Dated: __________________________ STATE OF MINNESOTA ) ) SS. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ____ day of _________, 2020, by William Droste and Erin Fasbender, the Mayor and City Clerk, respectively, of the City of Rosemount, Minnesota, on behalf of the City. Notary Public NOTARY STAMP OR SEAL This instrument was drafted by: Kennedy & Graven, Chartered (MDT) 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337-9300 12 DOCSOPEN\RS220\403\675474.v1-9/16/20 EXHIBIT A OF ASSESSMENT AGREEMENT Legal Description of Property Outlot A, McMenomy Addition Dakota County, Minnesota Abstract Property