HomeMy WebLinkAbout2016-01-06 PACKET 04.I. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM # ��
DATE 1/6/16 .
PREPARED BY: Community Development Jennifer Levitt
ORIGINATING DEPARTMENT STAFF AUTHOR
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * � * * * * * * * * * * * * * * * *
COUNCIL ACTION REQUEST:
Consider approving the revised assessment appeal waiver agreement for Light the Way
Church.
STAFF RECOMMENDATION:
Approve the request.
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 12/23/15
❑ RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
� OTHER: Revised assessment appeal waiver agreement
ADMINISTRATOR'S COMMENTS:
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� � . �� �� � �� ��
- City Administrator Date
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COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER
i
Cottage
/ Grove
�here Pride andP�OSPerity Meet I
TO: Honorable Mayor and City Council
Charlene Stevens, City Administrator
FROM: Ryan BurFeind, Project Engineer
DATE: December 23, 2015
�
RE: Approve Revised Light the Way Church Assessment Appeal Waiver Agreement '
Background '
�
At the City Council meeting on November 4, 2015, the public hearing was held for the Jamaica
Avenue & 70th Street Road Improvements project. As part of this project, permanent and tempo- j
rary easements will be required for construction of the improvements. Assessment appeal waiver '
agreements were approved at the November 4 meeting for the three assessed properties: Light ,
the Way Church, Rose of Sharon Church, and Dodge Nature Center. These agreements outline
the value of the easements to be acquired, which will offset the assessments for the properties.
Discussion
Based on recent changes near the Light the Way Church driveway, additional temporary ease- '
ment is required to facilitate construction. This additional amount brings the total temporary
construction easement to be acquired from Light the Way church to 6,281 square feet, bringing
the total value of the easements to $9,955.56. This will require the Church to pay $5,944.44 in
improvement costs. The Church is scheduled to take action on this assessment waiver soon. �
Temporary Easement Value = $2,455.56 �
Permanent Easement Value = 7 500.00 �
Total Easement Value = $9,955.56
Assessment Waiver Amount= $15,900.00 j
DeficiencyAssessment WaiverAmount= $5,944.44
A copy of the revised assessment waiver agreement is attached. A layout depicting the revised
permanent and temporary easements can be seen in Exhibit B of the agreement.
i
Recommendation
It is recommended that the City Council approve the revised assessment appeal waiver agree- �
ment for Light the Way Church.
I
CITY OF COTTAGE GROVE
ASSESSMENT APPEAL WAIVER AGREEMENT FOR
7000 JAMAICA AVE., COTTAGE GROVE,MN 55016
THIS AGREEMENT FOR AN ASSESSMENT APPEAL WAIVER ("Agreement") is
entered into and effective as of the 6th day of January, 2016 ("Agreement Date"), by and between
the City of Cottage Grove, a Minnesota municipal corporation ("City"), and Park Grove Christian
Center Assembly of God, Cottage Grove,MN, a Minnesota non-profit corporation("Owner").
WITNESSETH:
WHEREAS, the Owner, commonly known as Light the Way Church, is the fee simple
owner of property legally described on the attached Exhibit A, having the street address of 7000
Jamaica Ave., Cottage Grove, Washington County, Minnesota that will be benefited by certain
Improvements; and
WHEREAS, the City will be constructing certain public improvements as depicted on the
attached Exhibit B ("Improvements"); and
WHEREAS, as part of the Improvements, the City desires that the Owner grant it a
temporary easement and a permanent easement over a portion of the real property, such "Proposed
Right of Way" and "Temporary Easement" are depicted and legally described on Exhibit C
(`Basement"); and
WHEREAS, as part of the consideration for the benefit to the Property that the
Improvements will provide,the Owner shall grant the City the Easement by February 1,2016;and
WHEREAS, if the Owner fails to grant the Easement to the City by the date listed above,
the Owner is willing to agree to the levy of the full value of the Assessment Waiver Amount against
the Property for the Assessment Term with interest accrual at the Assessment Interest Rate; and
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WHEREAS, if the Owner grants the Easement to the City by the date listed above, the
Owner is willing to agree to the levy of the Deficiency Assessment Waiver Amount against the
Property for the Assessment Term with interest accrual at the Assessment Interest Rate; and
WHEREAS,the Owner is willing to waive its assessment appeal rights up to the full value
of the Assessment Waiver Amount which constitutes an estimated benefit of the Improvements
pursuant to Minnesota Statutes, Chapter 429 in the manner authorized by Minnesota Statutes §
462.353.
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 acknowledged,the parties hereto do covenant and agree as follows:
ARTICLE I
THE AGREEMENT
Section 1.01 Purpose. The purpose of this Agreement is to memorialize the covenants and
agreements between the Owner and the City with regard to the Property and the Improvements
including the Owner's agreement to grant the Easement to the City and that Owner's waiver of
assessment appeal rights up to the Assessment Waiver Amount which constitutes an estimated
benefit of the Improvements pursuant to Minnesota Statutes, Chapter 429 in the manner authorized
by Minnesota Statutes § 462.3531.
Section 1.02 Term. The term of this Agreement shall commence on the Agreement Date
and shall terminate upon the expiration of the Assessment Term or repayment of the levied
assessments.
Section 1.03 Survival. Notwithstanding the termination of this Agreement pursuant to
Section 1.02, the Owner's Covenants and Agreements contained in Section 3.01 and the City's
Covenants and Agreements contained in Section 3.02 shall survive the termination of this
Agreement.
ARTICLE II
DEFINITIONS
Section 2.01 Defmitions. The following are terms 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) A�reement: This agreement to memorialize the covenants and agreements between the
Owner and the City with regard to the Property, the Easement and the Improvements
including the assessment appeal waiver provided herein pursuant to Minnesota Statutes,
Chapter 429 in the manner authorized by Minnesota Statutes § 462.3531.
(b) Agreement Date: The date written in the first paragraph of the Agreement.
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(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. Interest accrual
shall begin the earlier of the following dates: (1)on the date of substantial completion of the
Improvements, or(2)December 31,2016.
(d) Assessment Term: The term of the special assessment levied against the Property shall be
fifteen(15)years.
(e) Assessment Waiver Amount: The Assessment Waiver Amount is the total value of the
Improvements, in the amount of Fifteen Thousand Nine Hundred Dollars and 00/100s
($15,900.00), which is to be assessed by City against the Property if the Owner fails to
grant the City the Easement by February 1, 2016. The Assessment Waiver Amount is
commensurate with the estimated special benefit of the Improvements to the Property.
(� C�: The City of Cottage Grove, a Minnesota municipal corporation.
(g) Deficiencv Assessment Waiver Amount: The difference between the value of the
Improvements and the value of the Easements, which is determined to be Five Thousand
Nine Hundred Forty-Four pollars and 44/100s ($5,944.44). The Deficiency Assessment
Waiver Amount is the amount that will be assessed if the Easement is granted by Owner.
(h) Easement. Easement means a temporary and permanent right of way easement granted to
the City/and Public in a form provided by the City over that area depicted on the attached
Exhibit B as "Proposed Right of Way" and "Temporary Easement." The form of such
easement is attached as Exhibit D.
(i) Owner: Park Grove Christian Center Assembly of God, Cottage Grove, MN, a Minnesota
non-profit corporation, otherwise known as"Light the Way Church."
(j) Pro e : The real property identified and described on Exhibit A.
ARTICLE III
COVENANTS AND AGREEMENTS
Section 3.01 Covenants and A�reements of the Owner. The Owner covenants and
agrees with the City that:
(a) Assessment Appeal 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 Improvements, in the event that Owner fails to grant the
Easement to City as provided herein. The special assessment shall accrue at the Assessment
Interest Rate for the Assessment Term, unless pre-paid in full on or before the earlier of the
following dates: (1) the date of substantial completion of the Improvements, or (2)
December 31,2016.
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The Owner hereby waives all rights to assessment 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 Owner hereby
waives 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 a11 of the Assessment Waiver Amount
against the Property exceeds the benefit to the Property for the Improvements. The Owner
acknowledges and agrees that the benefit of the Improvements to the Property does in fact
equal the Assessment Waiver Amount. The Owner also acknowledges and agrees that the
Property receives a special benefit equal to the Assessment Waiver Amount. Furthermore,
the Owner acknowledges and agrees that the costs of the Improvements may not be equally
spread against all benefited property and the Improvements extend beyond the corporate
limits of the City.
The City and the Owner acknowledge and agree that the Owner's 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 Owner
acknowledge and agree that the Owner may appeal any special assessment above the
Assessment Waiver Amount.
(b) Owner's Covenant Not to Sue the Citv: Owner hereby covenants 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 for the Improvements constructed by the
City.
(c) Owner's Covenant that Owner is the Propertv Fee Owner: Owner hereby covenants and
warrants with the City that Owner is seized in fee of the Property and has good right to
enter into this Agreement with the City, and to grant the Easement.
(d) Owner's A�reement to Assessment Amount for Balance of Deficienc� Owner understands
and agrees that the value of the Improvements outweigh the value of the Easement as
follows:
Temporary Easement Value= $2,455.56
Permanent Easement Value =$7,500.00
Total Easement Value =$9,955.56
Assessment Waiver Amount=$15,900.00
Deficiency Assessment Waiver Amount= $5,944.44
Owner understands and agrees that if it grants the Easement, the City will levy the
Deficiency Assessment Waiver Amount. Owner understands and agrees that if it fails to
grant the Easement,the City will levy the Assessment Waiver Amount as stated in 3.01(a).
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(e) Right of Entry: Owner hereby grants the City a right of entry to the Property for the purpose
of removing and replacing certain trees in the area of the Temporary Easement, as provided
in Section 3.02(e)below.
Section 3.02 Covenants and A�reements of the City. The City covenants and agrees
with the Owner that:
(a) Assessment Waiver Amount: The City agrees that it will only certify/levy the Assessment
Waiver Amount against the Property if the Easement is not granted by Owner by February
l, 2016 and then, only up to the Assessment Waiver Amount for the Improvements pursuant
to this Agreement.
(b) Deficiency Assessment Waiver Amount: The City agrees that it will only certify/levy the
Deficiency Assessment Amount against the Property if the Easement is granted by Owner
by February 1, 2016 and then, only up to the Deficiency Assessment Waiver Amount for the
Improvements pursuant to this Agreement.
(c) City Recordin� of this Agreement: The City will record this Agreement against the
Property. If Owner grants the Easement to the City, the City will record the Easement
against the Property.
(d) Prepavment of Assessment: The City agrees the Owner may prepay some or all of the
City's assessment levy against the Property for the Improvements with no penalty and only
with interest accrual pursuant to Minn. Stat. § 429.061.
(e) Any trees removed as part of the construction of the Improvements, will be replaced, after
discussion with the Owner, with the largest trees that will be viable, as recommended by the
City Forester.
(� The City, at its expense, will restore the disturbed portions of the Easement areas depicted
on Exhibit B to their pre-Project condition, as well as any other portions of the Property that
are damaged in connection with the construction of the Improvements.
(g) The Permanent Easement granted by the Owner shall not adversely affect the expansion
plans that have been submitted by the Owner to the City prior to the date of this Agreement.
(h) The Owner shall, at all times during the construction of the Improvements, have vehicular
and pedestrian access to the Property via the existing driveway on Jamaica Avenue.
ARTICLE IV
DEFAULT
Section 4.01 Default. If a party 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
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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 Attornevs' Fees, Costs and Expenses. The Owner agrees that after execution
of this Agreement, if it challenges the validity of the Assessment up to the Assessment Waiver
Amount in any way, then Owner shall 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 up to the Assessment Waiver
Amount pursuant to this Agreement. The Owner acknowledges and agrees that the Owner would be
unjustly enriched if the City's assessment levy up to the Assessment Waiver Amount pursuant to
this Agreement was set aside, reduced, repealed or invalidated by a court with jurisdiction over the
Property. The Owner agrees 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 attorneys' fees, costs and expenses for breach of the Owner's covenant not to appeal or sue
the City pursuant to Article III, Section 3.01(b).
ARTICLE V
GENERAL PROVISIONS
Section 5.01 Notices. All notices, requests, demands or other communications required or
permitted by this Agreement shall be in writing and delivery shall be deemed to be sufficient if
delivered personally or by registered or certified 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 Owner: Park Grove Christian Center Assembly of God
7000 Jamaica Ave.
Cottage Grove, MN 55016
Section 5.02 Non-Assi�nability. Neither the City nor the Owner 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 terms, conditions and covenants
contained herein and the transaction contemplated hereunder shall be binding upon and inure to the
benefit of the parties hereto and their respective successors, heirs, personal representatives, and
permitted assigns. This Agreement shall further be binding on subsequent purchasers of the
Property and shall run with the Property herein described.
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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, Changes and Modifications. This Agreement may be
amended or any of its terms modified or changed only by a written amendment authorized and
executed by the City and the Owner.
Section 5.06 Counterparts. This Agreement may 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 Owner agrees to notify and provide any buyer of the
Property with an executed copy of this Agreement if the Owner sells any interest in the Property
following the execution of this Agreement by both the Owner and the City, but before the recording
of this Agreement with Washington County Recorder and/or Registrar of Titles.
IN WITNESS WHEREOF, the City and the Owner have caused this Agreement to be
executed by their duly authorized representatives.
[remainder of page intentionally blank]
L:\CLIENTS\330\33000\02002�Documents\Light the Way\7000 Jamaica Ave Assessment Appeal Waiver Agreement 1-5-16.docx
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CITY OF COTTAGE GROVE
By:
Myron Bailey
Mayor
By:
Joseph Fischbach
City Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF WASHINGTON )
On this day of , 20 , before me a Notary Public within and for
said County, personally appeared Myron Bailey and Joseph Fischbach to me personally known,
who being each by me duly sworn, each did say that they are respectively the Mayor and the City
Clerk 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 corporation by authority of its City
Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of
said municipal corporation.
Notary Public
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OWNER
Park Grove Christian Center Assembly of God
By:
Name:
Its:
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was executed this day of , 20 , by
, the of Park Grove Christian Center Assembly of God, a
Minnesota non-profit corporation, on behalf of the corporation.
Notary Public
This instrument drafted by: After recording,please return to:
Korine L.Land(#262432) Korine L.Land(#262432)
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 Street,Suite 400
South St.Paul,Minnesota 55075 South St.Paul,Minnesota 55075
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EXHIBIT A
Legal Description of Property
Outlot "A", Pinetree Pond East, according to the plat thereof on file and of
record in the office of the County Recorder in and for Washington County,
Minnesota.
EXHIBIT B
Improvements
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LI�HT THE WAY CHURCN — PR��'�SE� RIGH7 OF �IJAY / EASElv1ENT�
�ITY tJF CC7TTA(.�E GRC}�IE,��I FIGURE; 1
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EXHIBIT C
Easement
�I�'Y �JF CJTTA�E GRC�VE, N1INNESOYA
7UTH ST�E�T �. .lA�v1�,ICA AVENU� IMPR�VEMENTS
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FERMI�NENT RqADWAY EAS�MENT
A p�rman�nt eas�ment for r�atiway purp�s�s�ve�un�er, arxi a�rt�ss th�East 2S.U0 f�t of the North 100.Od feet of ttutlotA,PINEi'12E�
k�OND�AST,�c�nrding td khe rr�cord�d pfat tl��re�f,W�hit��t�Caunty�Minn�sota.
Saiil�rm�n�nt roadv�ray�as�m�nt�ntains��,50q s�uare��t(�f1,0�aer��).
TEMPL�RARY GONS�IiUt"fTt7N EAS�INEIVT
A��rt�porary��sern�nt For ronstructdan purpqses nv�r,und�r, ar�ti��rbss the W�st 25.Od f�et o�th�E�st 50.00 f��t of the North 10D,0��t
o�OuN�t A,PtNEfR€E Pt)NQ�A,ST,�c�sr�3ing to tN,�e r���ret�d pi�t th�r��f,W�shin�tnn Cnunty,Nifnnesot�.
AN�3
s1 t�rnp�r�ry��sement fdr e�nstru�tion purp�cev�r,unc#�r,ar,d acrc�ss th�t p�rt��th�East iC}.Clb fe�t Iying�outheriy of�NnrE�100.C10
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EXHIBIT D
PERMANENT EASEMENT AND
TEMPORARY CONSTRUCTION EASEMENTS
The undersigned Grantor for and in consideration of One and no/100 Dollars ($1.00) and other
good and valuable consideration, the receipt whereof is hereby acknowledged, does hereby
grant and convey to the City of Cottage Grove ("Grantee"), a permanent roadway easement
("Permanent Easement") and temporary construction easement ("Temporary Easement"), both
described and depicted on Exhibit A attached hereto and incorporated herein, over, under and
across the following described land situated in the County of Washington, State of Minnesota,
to wit:
PROPERTY DESCRIPTION:
Outlot "A", PINETREE POND EAST, according to the plat thereof on file and of record in the
office of the County Recorder in and for Washington County, Minnesota.
Tax Parcel Identification No.:
10.027.21.22.0001
(the "Property").
TEMPORARY EASEMENT TERM AND PURPOSE:
The term of the Temporary Easement shall be three (3) years which will begin on April 1, 2016,
and terminate on March 31, 2019.
The Temporary Easement shall be for all purposes necessary or incidental to the construction
by Grantee of the 70"' Street and Jamaica Avenue Improvement Project and related highway,
roadway, sidewalk, landscape, wall and drainage and utility on or adjoining the above
described property, including the right to make cuts and fills and construct slopes on said
Temporary Easement, and remove therefrom or place thereon earth, other materials,
replacement trees and other vegetation.
Grantor warrants it is the owner of the above described Property and has the lawful right and
authority to convey and grant the Temporary Easement herein granted.
Nothing contained herein shall be deemed a waiver by the Grantee of any governmental
immunity defenses, statutory or otherwise. Further, any and all claims brought by Grantor, its
successors or assigns, shall be subject to any governmental immunity defenses of the Grantee
and the maximum liability limits provided by Minnesota Statute, Chapter 466.
This agreement is binding upon the heirs, successors, executors, administrators and assigns of
the parties hereto.
EXECUTED as of this day of , 2015.
PARK GROVE CHRISTIAN CENTER ASSEMBLY OF GOD
By:
Name:
Its:
By:
Name:
Its:
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was executed this day of
, 2016, by , and , the
and , respectively, of Park Grove Christian
Center Assembly of God, a Minnesota non-pro�t corporation, on behalf of the corporation.
Notary Public
This instrument drafted by: After recording,please return to:
Korine L.Land(#262432) Korine L.Land(#262432)
Cottage Grove City Attomey Cottage Grove City Attorney
LeVander,Gillen&Miller,P.A. LeVander,Gillen&Miller,P.A.
633 South Concord Street,Suite 400 633 South Concord Street,Suite 400
South St.Paul,Minnesota 55075 South St.Paul,Minnesota 55075
Title Not Examined
EXHIBIT A
PERMANENT EASEMENT AND
TEMPORARY CONSTRUCTION EASEMENT
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�ITY OF CC�TTA�E ����V�, MINNESOTA
�oYN sr����r & ��r�A�c� �v�NUE �n��Rc�v��r�r��rs
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�I l��oot eirain�g��utilily �
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PERMAN�N"f t2C)A�W�1Y�ASENIENT
A�rtt��re�r�t��s�m�nt for roadway purpos�s ov�r,unti�r, �n�i��rns�ti�e��i��.t�t��t 6f th�N�rth 1bD.017�eet s�f OutlotA,PINE�R�
P�Nf��A5`C,��nrding fo th2 reeorded plat tl��r�af,VV��hin�n��uniy,Minro�yot�.
Said p�smar�enk ro�zi��y�as�m€nt cortfains�2,500�quar�f2et(ttl.06 a�r�s).
7Eh1PORARY GE?NSTRUCTIO(�EASEMEN`T
A t�m�t�r�ry�as�rn�nt frar constr���tidn pur���s arer,un�i�r, and�erta�dr���t�5.OU I��t c��tN�East 54.OQ Fe�t of tlie North 1�f}.Ofl f�:et
c�f C1uN�t tl,PIN�i`R�E Pt�NC��AST,aceording t�iFi�e���d�i plat tlt�r��f,4�tashirtz,�te�ra C4unty,Mini�e�t�.
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�e�t��C3utlot A.P[N�t'l2�E POND EA57,a�cordin�tz�th�re�ordeci pl�t tt�r�t�f Ntashi�gkan C�unty,Minnesdt�.
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