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.
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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:
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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.
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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.
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[Remainder of page intentionally left blank; signature pages to follow.]
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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
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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
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EXHIBIT A OF ASSESSMENT AGREEMENT
Legal Description of Property