HomeMy WebLinkAbout6.o. Approval of Assessment Agreement for OMNI Wine Holdings LLC Related to Storm Water Trunk Area Charges, On-Site Ponding and Water Access Charge (WAC)
EXECUTIVE SUMMARY
City Council Regular Meeting: June 21, 2022
AGENDA ITEM: Approval of Assessment Agreement for
OMNI Wine Holdings LLC Related to
Storm Water Trunk Area Charges, On-
Site Ponding and Water Access Charge
(WAC)
AGENDA SECTION:
Consent
PREPARED BY: Eric Van Oss, Economic Development
Coordinator AGENDA NO. 6.o.
ATTACHMENTS: Assessment Agreement APPROVED BY: LJM
RECOMMENDED ACTION: Motion to Approve an Assessment Agreement with OMNI
Wine Holdings LLC and Authorize the Mayor and Clerk to enter into the Agreement
BACKGROUND
The City Council is being asked to approve an assessment agreement related to the storm water trunk area,
on-site ponding and Water Access Charge (WAC) fees for the Omni Wine Holdings LLC farm winery and
taproom project. The property owners of the project, Zachary Ward and Justin Walsh, have 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. Initial infrastructure work has begun on site and the
owners plan to start construction of the farm winery sometime in July. The attached agreement specifies
that the assessment would be levied prior to the issuance of a building permit for the property.
The Planned Unit Development and Conditional Use Permit for OMNI Wine Holdings LCC farm winery
and taproom at 15701 Biscayne Ave was approved by the City Council on September 21, 2021. 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 $27,496.35 ($6,865 per acre), and 2) Water
Access Charge (WAC) of $19,600. 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 permit issuance. Given the current
economic conditions, Water Access Charges (WAC) associated with this type of use, and the expensive
nature of building a new facility to house the farm winery 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.
A similar assessment agreement was approved by the Council and North 20 Brewing in 2020. 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 approve the assessment agreement concerning storm water
trunk area, on-site ponding and Water Access Charge (WAC) fees between the City of Rosemount and
OMNI Wine Holdings LLC 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 OMNI Wine Holdings LLC, (“Owner”).
RECITALS
WHEREAS, the Owner intends to construct a farm winery and taproom (the “Project”) on
property located at 15701 Biscayne Avenue (PID 340321075016) (the “Property”, which is legally
described on the attached Exhibit A); and
WHEREAS, the Owner is requesting to pay the storm water trunk area charges and off-site
ponding fees, which were required as part of the 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 an on-site ponding fee in the amount of $27,496.35 and a Water Access Charge (WAC) in
the amount of $19,600.00, for a total of $47,096.35 (the “Project Charges”) and
WHEREAS, the Property is currently Business Park zoned, located with the Metropolitan
Urban Service Area (MUSA) and is undeveloped; 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:
AGREEMENT
1. The above-stated recitals are incorporated by reference into this Agreement.
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2. Petition. (a) The Owner hereby requests that the Project Charges in the amount of Forty-
Seven Thousand Ninety-Six Dollars and Thirty-Five Cents ($47,096.35) 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.
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 assessments 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 the construction or use of the microbrewery and
taproom the City will levy a special assessment in the amount of Forty-Seven Thousand Ninety-Six
Dollars and Thirty-Five Cents ($47,096.35) on the Property payable in annual installments over ten
(10) years and bearing interest at a rate of two points over the bond rate which is 2.75 resulting in a
rate of 4.75.
(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 SECTION
32 TWN 115 RANGE 19, 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.
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
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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.
[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: __________________________
Justin Walsh
Dated: ________________________
By: __________________________
Zachary Ward
Dated: ________________________
STATE OF MINNESOTA )
) ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this ____ day of ______________,
2022, by Justin Walsh and Zachary Ward, CFO and COO, 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 _________, 2022,
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
SECTION 32 TWN 115 RANGE 19, Dakota County, Minnesota