HomeMy WebLinkAbout6.k. Waiver of Deed Restriction for North 20 Brewing Addition
EXECUTIVE SUMMARY
City Council Regular Meeting: July 20, 2021
AGENDA ITEM: Waiver of Deed Restriction for North 20
Brewing Addition
AGENDA SECTION:
Consent
PREPARED BY: Kyle Klatt, Senior Planner AGENDA NO. 6.k.
ATTACHMENTS: Waiver of Deed Restriction APPROVED BY: LJM
RECOMMENDED ACTION: Motion to Approve a waiver of the deed restriction associated
with the North 20 Brewery Addition authorizing the sale of Lot 1, Block 1 to Schmitz Real
Estate, LLC
BACKGROUND
The City Council is being asked to approve a request to waive the deed restriction associated with the
North 20 Brewery Addition that prohibits the sale of Lot 1 or Lot 2 of the subdivision independent from
the other lot. The waiver would allow the current property owners, David and Carol Schmitz, to transfer
the lot on which their microbrewery and taproom will be located to a separate LLC (Schmitz Real Estate,
LLC) for purposes of securing a Small Business Administration Loan. They cannot secure such a loan as
private individuals, and they will be the sole owners of the business. Staff is supportive of the request, and
is recommending that the City Council execute the attached deed restriction waiver.
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. One of the
conditions of approval required the recording of a deed restriction over the two subdivision lots
prohibiting the sale of either parcel independent of the other property (residential and commercial). Since
the City’s approval, the applicant has recorded the plat, submitted a building permit for the microbrewery,
and has been working to address all outstanding conditions of approval. The proposed deed restriction
waiver will be one of the last steps necessary for the owners to secure financing and begin construction of
the brewery at their Bacardi Avenue site. The City Attorney has reviewed the waiver language and is
comfortable with the agreement as drafted.
RECOMMENDATION
Staff is recommending that the City Council adopt a motion to approve the deed restriction waiver
associated with the North 20 Brewery Addition that prohibits the sale of Lot 1 or Lot 2 of the subdivision
independent from the other lot and to allow the transfer of the lot to Schmitz Real Estate, LLC.
WAIVER OF DEED RESTRICTION
This WAIVER OF DEED RESTRICTION is made this ___ day of _________ 2021, by
David Schmitz and Carol Schmitz, husband and wife (“Owner”), and the City of Rosemount
(“City”).
RECITALS
WHEREAS, the Owners are the fee owners of the following described property located in
Dakota County, Minnesota:
Lots 1 and 2, Block 1, North 20 Brewery Addition
(the “Property”);
The Property is commonly known as: 12296 Bacardi Avenue, Rosemount,
Minnesota.
WHEREAS, the Owner intends to construct a microbrewery and taproom, to be known as North
20 Brewery, on a portion of 12296 Bacardi Avenue; and
WHEREAS, as a condition of the approval of the North 20 Brewery simple plat, the City of
Rosemount required that a restriction be imposed upon the Property that prohibits the sale of
either Lot 1 or Lot 2 of the Property independent from the other Lot; and
WHEREAS, Owners signed a Deed Restriction, dated January 4, 2021, was recorded in the
Office of the Recorder for Dakota County on February 25, 2021 as Document No. 3442245,
which Deed Restriction prohibits the sale of either Lot 1 or Lot 2 of the Property independent
from the other Lot; and
WHEREAS, Owners request that the City waive the Deed Restriction so as to allow Owners to
transfer Lot 1 to Schmitz Real Estate, LLC, a Minnesota limited liability company owned by
David Schmitz and Carol Schmitz, so that Schmitz Real Estate, LLC will be eligible to apply for
a Small Business Administration loan necessary to finance the construction of North 20
Brewery; and
WHEREAS, City is willing to waive the Deed Restrictions on the property.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, and other
good and valuable consideration, the parties hereto agree as follows:
1. Owner may transfer or sell their interest in Lot 1 of the Property independent from Lot 2
of the Property, to Schmitz Real Estate, LLC, provided, however, David Schmitz and
Carol Schmitz are and remain the sole owners of Schmitz Real Estate, LLC.
2. To the extent the transfer or sale of the interest in Lot 1 of the Property to Schmitz Real
Estate, LLC, as described in paragraph 1, is prohibited by or inconsistent with the Deed
Restriction, City hereby waives the Deed Restriction, and consents to the transfer or sale
of Lot 1 of the Property to Schmitz Real Estate, LLC.
3. The Deed Restriction shall remain in full force and effect except as modified or waived
herein.
IN WITNESS WHEREOF, Owners and City have hereunto set their hands by the day and
year first above written.
OWNER
BY: ______________________________
David Schmitz
OWNER
BY: _______________________________
Carol Schmitz
STATE OF MINNESOTA )
) ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this ____ day of _________________,
2021 by David Schmitz and Carol Schmitz, husband and wife, on behalf of Owner.
(Stamp)
(signature of notarial officer)
Title (and Rank):
My commission expires:
(month/day/year)
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
THIS INSTRUMENT WAS DRAFTED BY:
Daniel P. Doda, Atty No.: 318875
Doda & McGeeney, P.A.
421 1st Ave SW, Suite 300 East
Rochester, MN 55902
(507) 536-0555