Loading...
HomeMy WebLinkAbout6.n. Approval of Assessment Agreement for North 20 Brewing Addition Related to Storm Water Trunk Area Charges and Fees in Lieu of Park Land Dedication EXECUTIVE SUMMARY City Council Regular Meeting: December 15, 2020 AGENDA ITEM: Approval of Assessment Agreement for North 20 Brewing Addition Related to Storm Water Trunk Area Charges and Fees in Lieu of Park Land Dedication AGENDA SECTION: Consent PREPARED BY: Kyle Klatt, Senior Planner AGENDA NO. 6.n. ATTACHMENTS: Assessment Agreement APPROVED BY: LJM RECOMMENDED ACTION: Motion to Approve an Assessment Agreement with David and Carol Schmitz and Authorize the Mayor and Clerk to enter into the Agreement SUMMARY The City Council is being asked to approve an assessment agreement related to the storm water trunk area and park dedication fees for the North 20 Brewing Addition and microbrewery and taproom project. The property owner/developer of the project, David Schmitz, has requested flexibility to pay the required charges over a 10-year period, whereas the City’s standard policy is to collect these fees up front with the subdivision of property. The developer is planning to file the plat with the county by the end of the year, and intends to start construction of the microbrewery sometime in 2021. The attached agreement specifies that the assessment would be levied prior to the issuance of a building permit for the property. BACKGROUND The final plat for the North 20 Brewing Addition and Conditional Use Permit for a microbrewery and taproom at 12296 Bacardi Avenue was approved by the City Council on June 2, 2020. Two of the conditions associated with the approval require the applicant to pay fees specific to the microbrewery parcel as follows: 1) a storm water trunk area assessment of $17,162.50 ($6,865 per acre), and 2) fee in lieu or park land dedication of $23,670. The applicant is asking for relief to pay off these fees over a 10-year period of time instead of the typical lump sum payment at the time of platting. To date, the applicant has acquired the small strip of land and a portion of Bacardi Avenue in front of his property, and has submitted the final plat for review by the County. Given the current economic conditions, plat work performed to date by the property owner, and the expensive nature of building a new facility to house the microbrewery and taproom, the assessment of the development fees would provide flexibility for the applicant while still ensuring that the City is able to collect the required fees for the project. The City Attorney has reviewed and approved the agreement and the owner is comfortable with the language in the agreement. RECOMMENDATION Staff is recommending that the City Council adopt a motion to approve the assessment agreement concerning storm water trunk area charges and fees in lieu of park land dedication between the City of Rosemount and David and Carol Schmitz and authorize the Mayor and Clerk to enter into the agreement. 1 585567v1 RS215-4 ASSESSMENT AGREEMENT THIS ASSESSMENT AGREEMENT is by and between the City of Rosemount, a Minnesota municipal corporation (the “City”) and David L. Schmitz and Carol R. Schmitz, Husband and Wife, (“Owner”). RECITALS WHEREAS, the Owner intends to construct a microbrewery and taproom (the “Project”) on property legally described as Lot 1, Block 1 North 20 Brewing Addition, Dakota County, Minnesota (the “Property”). WHEREAS, the Owner is requesting to pay the storm water trunk area charges and fee in lieu of park land dedication, which were required as part of the prior plat approval associated with the Project, as a special assessment rather than as a lump sum payment, and WHEREAS, the City is willing to allow Owner to pay these charges as a special assessment against the Property and, based upon the City’s fee schedule and prior plat approval, such charges include a fee in lieu of park land dedication in the amount of $23,670 and a storm water trunk area charge in the amount of of $17,162.50, for a total of $40,832.50 (the “Project Charges” ”) and WHEREAS, the Property is currently agriculturally zoned, located outside the Metropolitan Urban Service Area (MUSA) and developed with a single-family home; and WHEREAS, the parties wish to memorialize the terms of their agreement to allow assessment of the Project Charges on the Property. NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the parties agree as follow: 2 585567v1 RS215-4 AGREEMENT 1. The above-stated recitals are incorporated by reference into this Agreement. 2. Petition. (a) The Owner hereby requests that the Project Charges in the amount of Forty Thousand Eight Hundred Thirty-Two Dollars and Fifty Cents ($40,832.50) be assessed against the Property. (b) The Owner represents and warrants that they are currently the owners of 100 percent of the Property, that they have full legal power and authority to encumber the Property as herein provided, and that as of the date hereof, they have fee simple absolute title in the Property, which is not subject to any liens, interests, or encumbrances, except as listed on the attached Exhibit B. 3. Waiver. (a) The Owner waives any rights to notice of a hearing and a hearing pursuant to Minn. Stat. §§429.031 and 429,061, and requests that the Project Charges be levied as a special assessment against the Property without hearings. (b) The Owner waives the right to appeal the levy of the special assessment pursuant to Minn. Stat. §429.081, or reapportionment thereof upon land division pursuant to Minn. Stat. §429.071, Subd. 3, or otherwise, and further specifically agrees with respect to such special assessments against the Property or reapportionment that: i. Any requirements of Minn. Stat., Chapter 429 with which the City does not comply are hereby waived by the Owner; ii. Assessment of the Project Charges is reasonable, fair and equitable and represents an increase in market value which is a special benefit to the Property . 4. Special assessment Levy. (a) Prior to issuance of a building permit for any structure on the Property the City will levy a special assessment in the amount of Forty Thousand Eight Hundred Thirty-Two Dollars and Fifty Cents ($40,832.50) on the Property payable in annual installments over ten (10) years and bearing interest at a rate of two points over the bond rate or two points over a current bond rate as determined by the City’s financial consultant. (b) Delinquent assessment payments may result in denial of building permits or other approvals submitted by the Owner, its affiliates, successors or assigns, necessary for subdivision of and building construction upon any property within the plat of North 20 Brewery Addition, Dakota County, Minnesota, and the Owner hereby waives all rights to appeal such denials to the extent that they are based upon delinquent assessment payments. 5. No Tax Deferral. The Owner represents and warrants that the Property is not so classified for tax purposes as to result in deferral of the obligation to pay special assessments; and Owner agrees that it will take no action to secure such tax status for the Property during the term of this Agreement. 3 585567v1 RS215-4 6. 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. 7. If the Owner, or their successors or assigns, violates 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 themselves, and their 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. 8. 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 further platted or developed. 9. 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. 10. 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. 11. The parties acknowledge that they have been represented by counsel in connection with the execution of this Agreement, or have chosen not to consult with counsel, and intend that no rules construing provisions of this Agreement against the drafter will be applied. 12. 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. 13. This Agreement may not be amended except by a writing authorized and executed by all parties. 14. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 15. Termination. This Agreement shall terminate upon the final payment of all special assessments levied against the Property for the Project Charges and the City shall thereupon execute and deliver such documents, in recordable form, as are necessary to extinguish its rights hereunder. 4 585567v1 RS215-4 [Remainder of page intentionally left blank; signature pages to follow.] 5 585567v1 RS215-4 IN WITNESS WHEREOF, the City and Owner have caused this Agreement to be executed in their names and on their behalf by their duly authorized representatives: OWNER By: __________________________ David L. Schmitz Dated: ________________________ By: __________________________ Carol R. Schmitz Dated: ________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2020, by David L. Schmitz and Carol R. Schmitz, Husband and Wife, on behalf of Owner. ___________________________ Notary Public NOTARY STAMP OR SEAL 6 585567v1 RS215-4 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 7 585567v1 RS215-4 EXHIBIT A OF ASSESSMENT AGREEMENT Legal Description of Property