HomeMy WebLinkAbout2016-02-09 PACKET 04.04.A.
TIMOTHY J. KUNTZ
DANIEL J. BEESON
*KENNETH J. ROHLF
STEPHEN H. FOCHLER
JAY P. KARLOVICH
ANGELA M. LUTZ AMANN
*KORINE L. LAND
*DONALD L. HOEFT
DARCY M. ERICKSON
DAVID S. KENDALL
BRIDGET McCAULEY NASON
TONA T. DOVE
BRADLEY R. HUTTER
HAROLD LEVANDER
1910-1992
ARTHUR GILLEN
1919-2005
MEMO
ROGER C. MILLER
1924-2009
*
ALSO ADMITTED IN WISCONSIN
ALSO ADMITTED IN NORTH DAKOTA
ALSO ADMITTED IN MASSACHUSETTS
ALSO ADMITTED IN OKLAHOMA
TO: President Bailey and EDA Commissioners
FROM: Kori Land, City Attorney
DATE: February 2, 2016
RE: Restrictive Easement Agreement
As you know, as of November 1, 2015, the Cottage Grove EDA became the owner of the Home Depot
parcel. Although the plans are in place to sell the Home Depot parcel to Grove-Rainbow in the near
future, with our current ownership, we have the unique opportunity of being a party to the Restrictive
Easement Agreement (REA) that has limited the redevelopment of this shopping center area since 2002.
The parties involved in the new development of the shopping center have prepared a revised REA and
submitted it to our office and City Staff for review and approval. It is important to remember that
restrictive covenants run with the land for 25 years, so this will not expire until 2041. A summary of the
main conditions of the REA is provided as follows:
PARTIES
:
HyVee
Grove-Rainbow
EDA
Fairfield
(division of Grove-Rainbow) (Starbucks)
Merchants Bank
7180 Point Douglas
(Noodles/Chipotle)
City
of Cottage Grove
PARCEL RESTRICTIONS:
Exclusive for HyVee
Grocery (Does not include incidental sales of less than 1,000 square feet)
o
Gas and convenience store
o
Pharmacy/Drug Store
o
Exclusive for HyVee, Merchants and Noodles/Chipotle but not allowed on HD, Mall or Starbucks
Off-sale Liquor
o
Over the Counter drugs (except vitamins)
o
Dollar Stores
o
-451--450-7384
OFFICE ALSO LOCATED IN SPOONER, WISCONSIN
-type store
o
Caribou
o
Bakery
o
Exclusive for HD
Home Improvement/Hardware, but cannot be greater than 40,000 sq. ft. pursuant to RCA
o
signed with Home Depot (RCA restriction expires 12/1/2030) (Does not include
incidental sales)
Physical Fitness
o
Hobby Store
o
Nail Salon (except existing Turbo Nails)
o
Sporting Goods
o
Exclusive for Mall
Hair salon
o
Spa
o
Tanning
o
Beauty supplies
o
Exclusive for Merchants Bank
Commercial and personal banking (Does not include ATMs or currency exchange as
o
incidental to the business)
RESTRICTIONS OVER ALL PARCELS
(strike-through shows what was stricken from the 2002 REA
and underlined shows what is new in the 2016 REA)
No bowling alley
No theater within 300 ft. of Home Depot (but no adult theater at all)
No cafeteria (i.e. Old Country Buffet) in store next to Rainbow
No Bingo other than in spot next to Rainbow
No flea market
No billiard hall
No night club (unless includes a restaurant)
No on-sale liquor (as a primary use)
No arcade
No physical fitness center
No recreation/amusement center (which does not include movie theater or physical fitness center)
No buildings with more than 1 story except Rainbow and Noodles/Chipotle building unless pre-
existing
No laundromat/dry cleaning
No Adult Uses
No banquet hall
No tattoo establishments
No antique store
No schools
No weight loss clinics
Restricted Use Area (next to Home Depot) additional restrictions:
No restaurant
o
No school
o
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No weight loss clinic
o
No offices
o
No off-track betting
o
No hair or tanning salon
o
PARKING
Cross-parking easements for all parcels over the entire shopping center. Please note that there is
language that this cross-parking easement requirement in the REA cannot be changed without the
prior written consent of the City.
Requirement that Grove-Rainbow remove the garden center and build at least 64 stalls on the
Home Depot site
The City is added as a party to the REA to confirm that all lots comply with parking requirements
as of the date of execution of the REA. All of the parcels have been through the appropriate
zoning approvals, so we can confirm that they all comply. However, if any uses change so that
the new use requires more parking, the owner will have to comply w
requirements and go through the process to obtain those approvals.
STORMWATER DETENTION POND
All property owners (except the EDA) are responsible for the maintenance, repair and replacement of the
Stormwater Detention Pond through a cost-sharing arrangement, based the square footage of each lot.
SIGNS
shall be maintained by HyVee, with expenses to be shared by those with permission to use the
sign.
allocated between HyVee and the Mall tenants, with
HyVee on top.
The monument sign will be shared between HyVee (top), Noodles/Chipotle (middle) and HD
(bottom). The size of the Noodles/Chipotle portion of the sign will not change and HyVee and
HD will have to share the remainder of the sign.
It is important to note that not all parties have agreed to the terms of the REA so there may be a few
changes prior to execution.
RECOMMENDATION:
Approve REA and authorize its execution, subject to minor modifications approved by the City Attorney.
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