HomeMy WebLinkAbout2014-12-03 PACKET 04.H. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM #
DATE 12/3/14 .
.
PREPARED BY: Community Development Jennifer Levitt
ORIGINATING DEPARTMENT STAFF AUTHOR
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COUNCIL ACTION REQUEST
Consider approving the Assessment Appeal Waiver Agreement for the 7341 Harkness Avenue
Improvement Project between the City of Cottage Grove and John Steenlage and Jena Kleis.
STAFF RECOMMENDATION
Approve the agreement.
BUDGET IMPLICATION: $N/A $N/A N/A
BUDGETED AMOUNT ACTUAL AMOUNT FUNDING SOURCE
ADVISORY COMMISSION ACTION
DATE REVIEWED APPROVED DENIED
❑ PLANNING ❑ ❑ ❑
❑ PUBLIC SAFETY ❑ ❑ ❑
❑ PUBLIC WORKS ❑ ❑ ❑
❑ PARKS AND RECREATION ❑ ❑ ❑
❑ HUMAN SERVICES/RIGHTS ❑ ❑ ❑
❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑
❑ ❑ ❑ ❑
SUPPORTING DOCUMENTS
� MEMO/LETTER: Memo from Ryan BurFeind dated 11/25/14
❑ RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
� OTHER: Assessment Appeal Waiver Agreement
ADMINISTRATOR'S COMMENTS
� l� � � 1
��-- ity Administrator Date
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COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER
Cottage
J Grove
� Pride and Prosperity Meet
To: Honorable Mayor and City Council
Ryan Schroeder, City Administrator
From: Ryan BurFeind, PE, Project Engineer
Date: November 25, 2014
Re: Assessment Appeal Waiver Agreement for the 7341 Harkness Avenue
Improvement Project
Backqround/Proposal
John Steenlage and Jena Kleis, property owners of 7341 Harkness Avenue, currently
have a well and septic system needing replacement. The property is located within the
Cottage Grove Metropolitan Urban Service Area.
Per City Code Section 11-3-8, within the City's urban service area, as defined by the
comprehensive plan, all structures designed for human occupancy shall be connected
to the public water and sewerage disposal systems where feasible. City water and sani-
tary sewer utilities area available along the property, located within Harkness Avenue.
Therefore, a connection to the City utilities is required, and per City Code Title 8-1-2(C),
the costs of accessing the system shall be paid by the property owners.
If the owners do not pay the costs of accessing the system by November 15, 2015, they
agree to the levy of the Assessment Waiver Amount against their properties with inter-
est accruing at the assessment interest rate. This agreement includes a waiver of the
hearing, notice, and appeal rights for projects levied under Minnesota Statute Chapter
429 in the manner authorized by Minnesota Statutes §462.3531. No public hearing is
required for the City Council to adopt these assessments because of the waiver.
Recommendation
It is recommended that the City Council approve the Assessment Appeal Waiver
Agreement for the 7341 Harkness Avenue Improvement Project between the City of
Cottage Grove and John Steenlage and Jena Kleis.
CITY OF COTTAGE GROVE
ASSESSMENT APPEAL WAIVER AGREEMENT
7341 HARI�NESS AVENUE, COTTAGE GROVE, MN 55016
LOT B SUBDIVISION CD 28357 SUBDIVISION NAME RLS #50
IMPROVEMENT PROJECT
THIS AGREEMENT FOR AN ASSESSMENT APPEAL WAIVER ("Agreement") is
entered into and effective as of the day of , 2014 ("Agreement Date"),
by and between the City of Cottage Grove, a Minnesota municipal corporation ("City"), and John
David Steenlage and Jena Lynn Kleis,("Owners").
WITNESSETH:
WHEREAS, the Owners are the fee simple owners of property legally described as Lot B
Subdivision Cd 28357 Subdivision Name RLS #50, Cottage Grove, Washington County,
Minnesota that will be benefited by the Proj ect; and
W�IEREAS, the Owners will cause the construction, at their sole expense, of cei�tain
private improvements to their Property to enable the Property to connect to the Cottage Grove
Sewer/Water System; and
WHEREAS, the Owners will pay the City for the cost of accessing the Sewer/Water
System as described on the attached E�ibit "A" by November 15, 2015; and
WHEREAS, if the Owners fail to pay by the date listed above, the Owners are willing to
agree to the levy of the Assessment Waiver Amount against the Property for the Assessment Term
with interest accrual at the Assessment Interest Rate to pay for the cost of accessing the
Sewer/Water System; and
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WHEREAS, the Project will result in a connection fiom the Property to the Sewer/Water
System, but the City is willing to facilitate the Project as desired by the Owners provided that the
Project is funded entirely by the Owners; and
WHEREAS, the Owners are willing to waive their assessment appeal rights up to the
Assessment Waiver Amount which constitutes an estimated benefit pursuant to Minnesota Statutes,
Chapter 429 in the manner authorized by Minnesota Statutes § 462.3531 in return for the City's
efforts to facilitate the collection of funding for the Project.
NOW, THEREFORE, in consideration of the mutual promises and covenants of each to
the other contained in this Agreement and other good and valuable consideration, receipt of which
is hereby acicnowledged, the parties hereto do covenant and agree as follows:
ARTICLE I
THE AGREEMENT
Section 1.01 Purpose. The puipose of this Agreement is to memorialize the covenants and
agreements between the Owners and the City with regard to the Property and the Project including
the Owners' waiver of assessment appeal rights up to the Assessment Waiver Amount which
constitutes an estimated benefit pursuant to Minnesota Statutes, Chapter 429 in the manner
authorized by Minnesota Statutes § 462.3531 in return for the City's effor-ts to facilitate the
collection of funding for the Project.
Section 1.02 Term. The term of this Agreement shall commence on the Agreement Date
and shall tei�ninate upon the expiration of the Assessment Tei�rn (or upon prepayment of the levied
assessment).
ARTICLE II
DEFINITIONS
Section 2A1 De�nitions. The following are tei�ns used in this Agreement. Their meanings
as used in this Agreement shall be expressly indicated below, unless the context of this Agreement
requires otherwise:
(a) Agreement: This agreement to memorialize the covenants and agreements between the
Owners and the City with regard to the Property and the Project including the assessment
appeal waiver provided herein pursuant to Minnesota Statutes, Chapter 429 in the manner
authorized by Minnesota Statutes § 462.3531.
(b) A�eement Date: The date written in the first paragraph of the Agreement.
(c) Assessment Interest Rate: The special assessment levied against the Property shall accrue
interest at a rate of seven percent (7%) per year for the Assessment Term.
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(d) Assessment Tenn: The term of the special assessment levied against the Property shall be
ten (10) years.
(e) Assessment Waiver Amount: The sewer/water connection charge imposed by the City for
the Project in the amount of Twenty-eight thousand, three hundred sixteen dollars
($28,316) is to be assessed by Cottage Grove against the Property if the Owners fail to
pay the connection charge by November 15, 2015. The costs related to the improvement
are described in Exhibit "A." The Assessment Amount is commensurate with the
estimated special benefit of the Project to the Property.
(� C�: The City of Cottage Grove, a Minnesota municipal corporation.
(g) Project: The sewer/water connection of the Property to the Cottage Grove Sewer/Water
System.
(h) Owners: John David Steenlage and Jena Lynn Kleis.
(i) Pro ei : The properry is legally described as Subdivision Cd 28357 Subdivision Name
RLS #50, Cottage Grove, MN 55016 (Washington County Property ID
#08.027.21.24.0003.
ARTICLE III
COVENANTS AND AGREEMENTS
Section 3.01 Covenants and A�reements of the Owner. The Owners covenant and
agree with the City that:
(a) Assessment A��eal Waiver: Owner hereby authorizes the City to certify to the
Washington County Auditor/Property Tax Assessor a special assessment against the
Property up to the Assessment Waiver Amount for Project.
The Owners hereby waive all rights to assessinent notices, hearings and appeals, and
all other rights pursuant to Minn. Stat. § 429.061, § 429.071 and § 429.081 for the
special assessment against the Property up to the Assessment Waiver Amount. The
Owners hereby waive any and all procedural and substantive objections to the
special assessment up to the Assessment Waiver Amount against the Property,
including, but not limited to, notice and hearing requirements and any claim that any
or all of the Assessment Waiver Amount against the Property exceeds the benefit to
the Property for the Project. The Owners acicnowledge and agree that the benefit of
the Project to the Property does in fact equal or exceed the Assessment Waiver
Amount. The Owners also acknowledge and agree that the Property receives a
special benefit equal to or exceeding the Assessment Waiver Amount. Furthei�rnore,
the Owners acicnowledge and agree that the Project costs may not be equally spread
against all benefited property and the Project extends beyond the corporate limits of
the City as desired by the Owner.
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The City and the Owners acicnowledge and agree that the Owners' waiver of
assessment appeal rights pursuant to Minnesota Statutes, Chapter 429, is capped at
the Assessment Waiver Amount by operation of Minn. Stat. § 462.3531. The City
and the Owners acknowledge and agree that the Owners may appeal any special
assessment above the Assessment Waiver Amount.
(b) Owners' Covenant Not to Sue the Citv: Owners hereby covenant with the City not
to appeal or sue the City for a court to set aside, reduce, repeal, or invalidate the
levied assessment, or for other relief from the payment of the City's levy of a special
assessment up to the Assessment Waiver Amount against the Property.
(c) Owners' Covenant that Owners are the Pro�ertv Fee Owners: Owners hereby
covenant and wal7ant with the City that Owners are seized in fee of the Property
and have good right to enter into this Agreement with the City.
Section 3.02 Covenants and A�reements of the City. The City covenants and agrees
with the Owners that:
(a) Assessment Waiver Amount: The Ciiy agrees that the City will certify/levy a
special assessment against the Property only up to the Assessment Waiver Amount
for the Project pursuant to this Agreement.
(b) City Recording of this Agreement: The City will record this Agreement against the
Property.
(c) Prepayment of Assessment: The City agrees that the Owners may prepay some or
all of the City's assessment levy against the Property for the Project with no penalty
and only with interest accrual pursuant to Minn. Stat. § 429.061.
ARTICLE IV
DEFAULT
Section 4.01 Default. If a pai to this Agreement materially defaults in the due and timely
performance of any of its covenants, or agreements hereunder, the other party(s) may give notice of
default of this Agreement. The notice sha11 specify with particularity the default or defaults on
which the notice is based. The notice shall specify a ten (10) day cure period within which the
specified default or defaults must be cured. If the specified defaults are not cured within the cure
period, the other party(s) may pursue all remedies and sanctions available at law and in equity,
including specific performance.
Section 4.02 Attorneys' Fees, Costs and Expenses. The Owners agree to pay the City the
amount of the City's assessment levy up to the Assessment Waiver Amount with accrued interest
together with the City's attorneys' fees, costs and expenses to defend the special assessment levy by
the City pursuant to this Agreement. The Owners acknowledge and agree that the Owners would be
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unjustly enriched if the City's assessment levy pursuant to this Agreement was set aside, reduced,
repealed or invalidated by a court with jurisdiction over the Properry since the Owners requested the
Project and this assessment financing for the Project. The Owners agree that the court with
jurisdiction over the Property shall award the City the assessment levy up to the Assessment Waiver
Amount with accrued interest together with the City's attoineys' fees, costs and expenses for breach
of the Owners' covenant not to appeal or sue the City pursuant to Ai�ticle III, Section 3 A 1(b).
ARTICLE V
GENERAL PROVISIONS
Section 5.01 Notices. All notices, requests, demands or other communications required or
pel7nitted by this Agreement shall be in writing and deliveiy shall be deemed to be sufficient if
delivered personally or by registered or cei�tified mail, return receipt accepted, postage prepaid,
addressed as follows:
If to the City: City of Cottage Grove
Attention: City Administrator
12800 Ravine Parkway South
Cottage Grove, MN 55016
If to the Owners: John Steenlage and Jena Kleis
516 6 Street
Newport, MN 55055
Section 5A2 Non-Assi�nability. Neither the City nor the Owners shall assign any interest
in this Agreement nor shall either party transfer any interest in the same without the prior written
consent of the other party.
Section 5.03 Bindin� Effect. This Agreement and the teims, conditions and covenants
contained herein and the hansaction contemplated hereunder shall be binding upon and inure to the
benefit of the parties hereto and their respective successors, heirs, personal representatives, and
per�rnitted assigns. This Agreement shall further be binding on subsequent purchasers of the
Property and shall iun with the Property herein described.
Section 5.04 Severabilitv. In the event any provision of this Agreement shall be held
invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or
render unenforceable any other provision hereof.
Section 5.05 Amendments, Chan�es and Modi�cations. This Agreement may be
amended or any of its tei�ns modified or changed only by a written amendment authorized and
executed by the City and the Owners.
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Section 5.06 Counternarts. This Agreement inay be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the
same instrument. ,
Section 5.07 Entire Agreement. This Agreement shall constitute the entire agreement
between the parties and shall supersede all prior oral or written negotiations.
Section 5.08 Notice To Buyers. The Owners agree to notify and provide any buyer of the
Property with an executed copy of this Agreement if the Owners sell any interest in the Property
following the execution of this Agreement by both the Owners and the City, but before the
recording of this Agreement with Washington County Recorder and/or Regishar of Titles.
IN WITNESS WHEREOF, the City and the Owners have caused this Agreement to be
executed by their duly authorized representatives.
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CITY OF COTTAGE GROVE
By:
Myron Bailey,
Mayor
By:
Caron Stranslcy,
City Clerlc
STATE OF MINNESOTA )
) ss.
COUNTY OF WASHINGTON )
On this day of , 2014, before me a Notaiy Public within and for
said County, personally appeared Myron Bailey and Caron Stranslcy to me personally known, who
being each by me duly sworn, each did say that they are respectively the Mayor and the City Clerlc
of the City of Cottage Grove, the Minnesota municipal corporation named in the foregoing
instrument, and that it was signed on behalf of said municipal coiporation by authority of its City
Council and said Mayor and City Clerk acknowledged said inshument to be the free act and deed of
said municipal corporation.
Notary Public
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OWNERS
John David Steenlage
Jena Lynn Kleis
STATE OF MINNESOTA )
) ss.
COUNTY OF WASHINGTON )
On this day of , 2014, before me a Notaiy Public within and for
said County, personally appeared John David Steenlage and Jena Lynn Kleis, to me personally
known to be the persons described in and who executed the foregoing instrument and
acknowledged that they executed the same as their fiee act and deed.
Notary Public
This instrument drafted by: After recording, please r•eturn to:
Korine L. Land Korine L. Land -
Cottage Grove City Attorney Cottage Grove City Attorney
LeVander, Gillen & Miller, P.A. LeVander, Gillen & Miller, P.A.
633 South Concord Street, Suite 400 633 South Concord Sh•eet, Suite 400
South St. Paul, Minnesota 55075 South St. Paul, Minnesota 55075
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EXHIBIT A
SANITARY SEWER AND WATER SERVICE TO 7341 HARKNESS AVENUE
ITEM TOTAL
SERVICE CONNECTIONS
DIRECTIONAL DRILLING $ 6,000.00
SERVICE CONNECTIONS $ 9,800.00
BITUMINOUS PATCH $ 1,800.00
$ 17,600.00
ENGINEERING, LEGAL, ADMINISTRATION, INSPECTION, TESTING (20%) $ 3,520.00
AREA CHARGES & CONNECTION FEES
WATER CONNECTION FEE (WEST DRAW) $ 1,275.00
SANITARY CONNECTION FEE (WEST DRAW) $ 386.00
STORM WATER FACILITIES (WEST DRAW SINGLE FAMILY) $ 2,937.00
WATER AREA CHARGE (WEST DRAW AREA 1& 2) $ 1,387.00
SANITARY AREA CHARGE (WEST DRAW AREA 1&2 ) $ 1,211.00
$ 7,196.OU
TOTAL $ 28,316.00