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Home My WebLink About2014-121 Council ResolutionCITY OF LINO LAKES RESOLUTION NO. 14-1 21 RESOLUTION APPROVING SETTLEMENT AGREEMENT WITH FIRST RESOURCE BANK I35E/CSAH 14 INTERCHANGE IMPROVEMENT PROJECT WHEREAS, on or about October 24, 2011, the City approved and levied a special assessment to finance its portion of the I35E / CSAH 14 interchange improvement project; and WHEREAS, the City assessed a total of $772,650.00 (the "Special Assessment") against five parcels located in Anoka County (the "County") subsequently acquired by the Bank, as a successor in interest to the original owner, East Lino Lakes, LLC, with those parcels identified as follows (the "Assessed Properties"): PIN 13-31-22-33-0001 PIN 13-31-22-31-0001 PIN 13-31-22-34-0001 PIN 13-31-22-32-0001 PIN 13-31-22-31-0002; and WHEREAS, the Bank, or its predecessor, appealed the Special Assessment in Anoka County District Court, File No. 02 -CV -11-7766; and WHEREAS, the Parties wish to resolve the pending appeal in order to avoid additional litigation costs. NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes that the settlement agreement attached hereto as Exhibit A is hereby approved and the Mayor and Clerk are authorized to execute the agreement on behalf of the City. Adopted by the Council of the City of Lino Lakes this 13th day of October, 2014. 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, Kusterman, Stoe , Reinee The following voted against same: none ATTEST: nne Bartell, Ci Cl� Jeff Reinert, ay +r L L CITY COUNCIL AGENDA ITEM 6C STAFF ORIGINATOR: Michael Grochala MEETING DATE: October 13, 2014 TOPIC: Consider Resolution No. 14-121, Approving Settlement Agreement with First Resource Bank, I35E/CSAH 14 Interchange Improvement Project, Michael Grochala VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting City Council consideration to approve the special assessment settlement agreement with First Resource Bank. BACKGROUND On October 24, 2011 the City approved and levied a special assessment to finance its portion of the I -35E / CSAH 14 Interchange improvement project. The City assessed a total of $772,650.00 against five parcels subsequently acquired by the Bank, as a successor in interest to the original owner, East Lino Lakes, LLC. The Bank appealed the assessment in Anoka County District Court as provided for under Minnesota Statutes, Chapter 429. Trial was scheduled to start October 25a`, 2014. The parties continued to discuss resolution of the pending appeal. At the October 6, 2014, closed meeting of the city council the proposed settlement with the Bank was outlined. The agreement provides for a reduced assessment of $620,000 and requires payment in full by November 1, 2014. The difference between the original assessment amount and the settlement amount is partially offset by a reduction of fees and interest that will result from prepayment of those costs to Anoka County. The balance will be funded by Municipal State Aids Street funds available for the interchange project. RECOMMENDATION Motion to approve Resolution No. 14-119. ATTACHMENTS 1. Resolution 14-119 Exhibit A SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS This Settlement Agreement and Release of All Claims ("Agreement") is hereby entered into by and between First Resource Bank ("the Bank") and the City of Lino Lakes ("City"). The Bank and the City are hereinafter referred to collectively as the "Parties," or individually as a "Party." WHEREAS, on or about October 24, 2011, the City approved and levied a special assessment to finance its portion of the I35E / CSAH 14 interchange improvement project; and WHEREAS, the City assessed a total of $772,650.00 (the "Special Assessment") against five parcels located in Anoka County (the "County") subsequently acquired by the Bank, as a successor in interest to the original owner, East Lino Lakes, LLC, with those parcels identified as follows (the "Assessed Properties"): PIN 13-31-22-33-0001 PIN 13-31-22-31-0001 PIN 13-31-22-34-0001 PIN 13-31-22-32-0001 PIN 13-31-22-31-0002; and WHEREAS, the Bank, or its predecessor, appealed the Special Assessment in Anoka County District Court, File No. 02 -CV -11-7766; and WHEREAS, the Parties wish to resolve the pending appeal in order to avoid additional litigation costs. NOW, THEREFORE, IN CONSIDERATION OF the foregoing, the mutual promises and covenants contained in this Agreement, including the relinquishment of certain legal rights and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the Parties agree as follows: 1. Special Assessment Amount. The total Special Assessment, including interest, shall be reduced to $620,000.00. On a per parcel basis, the individual assessments shall be as follows: PIN 13-31-22-33-0001 PIN 13-31-22-31-0001 PIN 13-31-22-34-0001 PIN 13-31-22-32-0001 PIN 13-31-22-31-0002 $ 156,522.02 $ 155,330.11 $ 150,274.88 $ 82,005.75 $ 75,867.24 $ 620,000.00 2. Payment. Payment of the reduced Special Assessment amount of $620,000.00 shall be submitted to the City on or before November 1, 2014 by check made payable to the City of Lino Lakes. Upon receipt of payment, the City shall notify the County that the Special Assessment is paid in full for the five parcels. 3. Release of Claims. In consideration of the reduction of the Special Assessment described above, the Bank does hereby, for itself and for its heirs, executors, administrators, successors, and assigns, releases, acquits, and forever discharge the City and its current or former Council members, agents, employees, servants, successors, insurers, and attorneys from any and all claims, actions, causes of action, demands, rights, damages, costs, loss of service, expense, and compensation whatsoever, including claims for attorneys' fees, known or unknown, asserted or unasserted, which arise out of or in any way relate to the original Special Assessment or the City's adoption of the Special Assessment. 4. Dismissal of Current Claims. The Bank shall dismisses, with prejudice and on the merits, all claims and causes of action which are or could have been made in the Anoka District Court appeal entitled First Resource Bank, organized and existing under the laws of Minnesota, as successor owner to Patriot Bank Minnesota, organized and existing under the laws of Minnesota, as successor owner to East Lino Lakes, LLC, a Minnesota limited liability company v. City of Lino Lakes (Court File No. 02 -CV -11- 7766), with each Party to bear its own costs, expenses and attorney fees. Upon executing this Agreement, the Bank will execute the Stipulation of Dismissal attached hereto as Exhibit 1. 5. No Wrongdoing. The Parties understand and agree that this Agreement is the compromise of a disputed claim and that the reduction of the Special Assessment cannot be construed as an admission of liability or wrongdoing on the part of any Party. 6. Equal Drafting, Choice of Law and Severability. This Agreement must be deemed to have been drafted equally by the Parties. This Agreement will be governed by the laws of the State of Minnesota. If any provision of this Agreement is held unenforceable by a court of law, the remainder of the Agreement shall remain in full force and effect. 7. Authority. The individuals signing below warrant that they have authority from their respective governing bodies to execute this Agreement and to bind their respective Parties. 8. Entire Agreement. This Agreement is a legally binding contract that represents the entire agreement between the Parties. This Agreement supersedes any and all prior agreements between the Parties as to the subject matter of this Agreement. No Party has relied on any statement or promise that is not contained in this Agreement. No changes or additions to this Agreement are valid unless they are in writing and signed by all Parties. By signing below, each Party specifically acknowledges that it has had the opportunity to review the terms of this Agreement with legal counsel; that it fully understands the terms of this Agreement; and that it intends to be legally bound by the settlement of claims as stated in this Agreement. FIRST RESOURCE BANK Dated: CITY OF LINO LAKES Dated: 191502 020447/312004/1960582_2 L., Stephen Cerven, Executive Vice President Mayor Attest: City Clerk