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HomeMy WebLinkAbout2013-090 Council Resolution• CITY OF LINO LAKES RESOLUTION NO. 13-90 RESOLUTION ACCEPTING PETITION AND WAIVER AGREEMENT 21st AVENUE IMPROVMENT PROJECT ALINO, LLC WHEREAS, pursuant to Resolution No. 13 -76 adopted by the City Council on June 24, 2013 the City approved the preliminary plat of ALino Addition; and WHEREAS, plat requires the improvement of 21st Avenue by the extension of street, sanitary sewer, watermain, storm sewer, traffic control signals, and pedestrian improvements ( "Improvement Project "); and WHEREAS, ALino, LLC is the owner of certain real property in the City abutting said Improvement Project; and WHEREAS, the Owner wishes the City to construct the Improvement Project without notice of hearing or hearing on the special assessments levied to finance the Improvement Project, and to levy up to $689,129.54 of the cost of the Improvement Project against the Subject Property; and WHEREAS, the Improvement Project requires that the City obtain certain portions of the Owner' property for street right -of -way, temporary construction easements and drainage and utility easements; and • WHEREAS, the Owner wishes to donate to the City the necessary right -of -way and easements to provide for the construction of said Improvement Project; and • WHEREAS, the City is willing to construct the Improvement Project without certain notices or hearings, provided the assurances and covenants, attached hereto as Exhibit A, are made by the Owner to ensure that the City will have valid and collectable special assessments as they relate to the Subject Property to finance all of the costs of the Improvement Project, that all necessary right - of -way and easements are provided to the City at no cost and that a Joint Powers Agreement between the City and City of Centerville is approved; NOW, THEREFORE, BE IT RESOLVED by the City Council of The City of Lino Lakes, Minnesota: 1. The City accepts the Petition and Waiver Agreement and authorizes the Mayor and City Clerk to execute said agreement on behalf of the City. Adopted by the Council of the City of Lino Lakes this 26th day of August, 2013. The motion for the adoption of the foregoing resolution was introduced by Council Member Roeser and was duly seconded by Council Member Rafferty and upon vote being taken thereon, the following voted in favor thereof: Roeser, Rafferty, O'Donnell, Stoesz, Reinert The following voted against same: none • ATTEST: • • u anne Bartell, C. Clerk • • CITY COUNCIL AGENDA ITEM 6Ci STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: August 26, 2013 TOPIC: Consider Resolution 13 -90, Accepting Petition and Waiver Agreement from ALino LLC, 21st Avenue Improvement Project VOTE REQUIRED: 3/5 Vote Required INTRODUCTION Staff is requesting Council acceptance of a petition and waiver agreement from ALino LLC, agreeing to assessments and right -of -way dedication for the 21st Avenue improvement project. BACKGROUND ALino LLC is the owner of land abutting the 21st Avenue improvement project. The owner has previously received preliminary plat approval from the City for a two lot commercial subdivision. Metro Transit is purchasing one of the lots for a park and ride facility. A condition of plat approval included submittal of a petition and waiver agreement for construction of the road, extension of utilities and provision of public right -of -way and easements. The agreement allows for the City to levy against the subject property up to $689,129.54 for the construction of the improvements and waives all requirements for special assessments under Minnesota Statutes, Chapter 429 and City Charter requirements. The agreement also provides for the dedication, at no cost to the city, permanent right -of -way and temporary easements necessary for the construction of the improvements on their property. The City of Centerville will be responsible for the balance of the project costs. RECOMMENDATION Staff recommends adoption of Resolution 13 -90. ATTACHMENTS 1. Resolution 13 -90 Revision 7 -23 -13 • EXHIBIT A PETITION AND WAIVER AGREEMENT This Agreement made this day of , 2013, by and between the City of Lino Lakes, a Minnesota municipal corporation ( "City "), and Alino LLC, a Minnesota limited liability corporation, ( "Owner "). WITNESSETH: WHEREAS, the Owner is the fee owner of certain real property in the City described in • Exhibit A hereto (the "Subject Property "); and WHEREAS, the Owner desires to have certain public improvements constructed to serve the Subject Property as described in Exhibit B hereto (hereinafter referred to as the "Improvement Project "); and WHEREAS, the Owner wishes the City to construct the Improvement Project without notice of hearing or hearing on the special assessments levied to finance the Improvement • Project, and to levy up to Property; and f the cost of the Improvement Project against the Subject PA‘L- WHEREAS, the Improvement Project requires that the City obtain certain portions of the Owner's property for street right -of -way and storm water ponding; and WHEREAS, the Owner wishes to donate to the City the necessary right -of -way to provide for the construction of said Improvement Project; and • • • WHEREAS, the City of Centerville and the City intend to enter into a Joint Powers Agreement (the "JPA "), providing for the cities' respective responsibilities regarding construction of the Improvement Project; and WHEREAS, the City is willing to construct the Improvement Project in accordance with the JPA and without certain notices or hearings, provided the assurances and covenants hereinafter stated are made by the Owner to ensure that the City will have valid and collectable special assessments as they relate to the Subject Property to finance all of the costs of the Improvement Project and that all necessary right -of -way is provided to the City, at no cost to the City; and WHEREAS, were it not for the assurances and covenants hereinafter provided, the City would not construct the Improvement Project without such notices, hearings and right -of -way and is doing so solely at the behest, and for the benefit, of the Owner. NOW, THEREFORE, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: 1. The Owner hereby petitions the City for construction of the Improvement Project. 2. The Owner represents and warrants that it is the owner of 100 percent of the Subject Property, that is has full legal power and authority to encumber the Subject Property as herein provided, and that as of the date hereof, it has fee simple absolute title in the Subject Property, which is not subject to any liens, interests or encumbrances, except as listed on the attached Exhibit C. 3. The Owner requests that up to 4664714944- of the cost of the Improvement Project be assessed against the Subject Property ( "Project Cost "). The parties agree and understand that the principal amount to be assessed for the Improvement Project will not exceed the Project Cost. 4. The City shall provide the plans and specifications for the Improvement Project. The cost of drafting the plans and specifications ( "Design Cost ") is included in the Project Cost and will be assessed with the other Project Costs pursuant to the provisions of this Agreement if the Improvement Project is constructed. In order to ensure that the City is reimbursed for the 2 • • • Design Cost incurred by the City in the event the Improvement Project does not proceed, the Owner agrees to and requests that the Design Cost be assessed against the Subject Property. The Design Costs are estimated to be $60,000. The actual amount of the reasonable Design Costs is to be assessed, even if it exceeds the estimate. Payment of the special assessments for the Design Costs pursuant to this paragraph shall be in installments over a period of two years bearing an interest rate set at 2% over the rate at which the City sold bonds at the City's most recent bond sale. 5. The Owner waives notice of hearing and hearing pursuant to Minn. Stat. section 429.031, on the Improvement Project, notice of hearing and hearing on the special assessments levied to finance the Improvement Project pursuant to Minn. Stat. section 429.061, and any notice of hearing or procedure specified under the City Charter; and specifically requests that the Improvement Project be constructed and special assessments levied therefore against the Subject Property without hearings. 6. The Owner waives the right to appeal the levy of the special assessments in accordance with this Agreement pursuant to Minn. Stat. section 429.081, or reapportionment thereof upon land division pursuant to Minn. Stat. section 429.071, subd. 3, or otherwise, and further specifically agrees with respect to such special assessments against the Subject Property or reapportionment that: a. Any requirements of Minn. Stat. chapter 429 or the City Charter with which the City does not comply are hereby waived by the Owner; b. The increase in fair market value of the Subject Property resulting from construction of the Improvement Project will be at least equal to the amount specified in paragraph 3, and that such increase in fair market value is a special benefit to the Subject Property; c. Assessment of the above - specified cost of the Improvement Project against the Subject Property is reasonable, fair and equitable and there are no other properties against which such cost should be assessed; and d. The Owner further specifically waives notice and right to appeal reapportionment of such special assessments upon land division pursuant to Minn. Stat. section 429.071, subd. 3. 7. Except as otherwise provided in paragraph 4 above, the Owner understands and agrees that the City may provide for the payment of such special assessments in installments over a period of ten (10) years bearing an interest rate set at 2% over the rate at which the City sells bonds for funding the Improvement Project. However, the decision regarding the period of time over which the special assessments may be paid and the interest rate to be applied is in the absolute and sole discretion of the city council, subject only to limitations imposed by law. 3 • 8. The Owner agrees to provide to the City, at no cost to the City, the right -of -way and permanent easements required to construct the Improvement Project as legally described in Exhibit C hereto. The road right -of -way (21st Avenue) shall be dedicated to the City by plat. 9. Owner represents and warrants that the Subject 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 Subject Property during the term of this Agreement. 10. The covenants, waivers and agreements contained in this Agreement shall bind the successors and assigns of the Owner and shall run with the Subject Property and bind all successors in interest thereof. It is the intent of the parties hereto that this Agreement be in a form that is recordable among the land records of Anoka County, Minnesota; and they agree to make any changes in this Agreement which may be necessary to effect the recording and filing of this Agreement against the title of the Subject Property. 11. This Agreement shall terminate upon the final payment of all special assessments levied against the Subject Property regarding the Improvement Project, and the City shall thereupon execute and deliver such documents, in recordable form, as are necessary to extinguish its rights hereunder. 12. The Owner's and the City's obligations under this Agreement are contingent upon the City and the City of Centerville entering into the JPA. In the event the JPA is not approved • by the cities, this Agreement shall be null and void. IN WITNESS WHEREOF, the parties have set their hands the day and year first written above. • 4 • • • CITY OF LINO LAKES ALINO LLC By By Its Mayor Its City Clerk STATE OF MINNESOTA ) )ss. COUNTY OF ANOKA ) By ,y-5 Cx 077)/C The foregoing instrument was acknowledged before me this day of 200_, by Jeff Reinert and Julianne Bartell, the Mayor and City Clerk of the City of Lino Lakes, Minnesota, a municipal corporation under the laws of the State of Minnesota, on behalf of the City. STATE OF MINNESOTA COUNTY OF Pt nL5ey ) ss. Notary Public The foregoing instrument was acknowledged before me this day of 740,50 Se, 2012, by R.61,0 .S g eve,e, 5 Notary Public • • • EXHIBIT A LEGAL DESCRIPTION OF PROPERTY Property ID: 24- 31 -22 -21 -0001 Legal Description: The NE 1/4 of NW % of Section 24, Township 31, Range 22, except roadways, subject to easements of record. • • • IMPROVEMENT PROJECT NOI13f1211SNO3 NO3 ION — JtdVNIW1138d 11! wilt 1 1 MovCQn _1l1c (nr.) t 11t f PROPERTY ,Q EXHIBIT C LEGAL DESCRIPTION OF RIGHT -OF -WAY • •