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HomeMy WebLinkAbout4.2 Easement Termination - City of Cottage Grove/Muddy Cow TO: Economic Development Authority FROM: Matt Wolf, Economic Development Specialist DATE: September 5, 2019 RE: Easement Termination – City of Cottage Grove/Muddy Cow Background The City of Cottage Grove Economic Development Authority (EDA) currently owns a 1.67-acre parcel off Hardwood Avenue and north of the current Muddy Cow Restaurant. At the July 9 City of Cottage Grove EDA meeting the EDA approved the sale of the land to Imagine, LLC for the development of a Pizza Ranch restaurant and the Cottage Grove City Council approved the sale of the land at their July 17 meeting. Figure 1 Current EDA owned parcel and future Pizza Ranch location. The original restaurant (Ruby Tuesday) at 7350 Hardwood Court South was built in 2004 and is currently Muddy Cow. Ruby Tuesday closed in 2016 and Muddy Cow was opened in 2019. As part of that original development a reciprocal parking easement agreement was executed between RT Minneapolis Franchise, LLC the developer of the original restaurant and the City of Cottage Grove, the owner of the 1.67-acre parcel to the north of Muddy Cow. The agreement runs in perpetuity and calls for the non-exclusive easement for vehicular ingress and egress, short term vehicular parking, and parking-related pedestrian traffic across the two Economic Development Authority September 5, 2019 Page 2 of 4 parcels. The agreement also calls for a driveway to be constructed between the two parcels. This agreement was put into place to allow for the original Ruby Tuesday restaurant and the potential development of a restaurant on the 1.67 acre parcel of land owned by EDA to have adequate parking to meet our city code. Figure 2 Original site plan of the restaurant constructed in 2004 and reciprocal parking easement location. Economic Development Authority September 5, 2019 Page 3 of 4 Discussion Imagine, LLC the future developer of the proposed Pizza Ranch, to be located on the 1.67 acre of EDA owned land, has requested to terminate the reciprocal parking easement agreement as part of the purchase of the land. The current owner of Muddy Cow restaurant, MC I Investors, LLC, has agreed to terminate the agreement. As part of the termination of the reciprocal parking easement agreement Pizza Ranch will still be required to extend the sidewalk from Muddy Cow on to their parcel to allow for pedestrian access. Also, Pizza Ranch will be required to curb and gutter the curb cut that was done as part of the original restaurant development in 2004 to allow for it to be converted into parking stalls. The City of Cottage Grove will also work with Pizza Ranch to obtain an easement to run water and sewer up to Oakwood Park. Figure 3 Improvements required by Pizza Ranch as part of the termination of the reciprocal parking easement agreement. Economic Development Authority September 5, 2019 Page 4 of 4 Recommendation By Motion: Approve the easement termination agreement between the City of Cottage Grove Economic Development Authority and MC I Investors, LLC Attachments Easement Termination Agreement Reciprocal Parking Easement Agreement recorded in 2004 EASEMENT TERMINATION THIS EASEMENT TERMINATION (“Easement Termination”) is entered into effective as of ____________________, 2019, and is hereby conveyed by the Cottage Grove Economic Development Authority, a public body corporate and politic under the laws of Minnesota (“EDA”) and MC I INVESTORS, LLC, a Minnesota limited liability company (“MC I”), the holders of certain Easement rights hereinafter described and defined. RECITALS A. The City of Cottage Grove, a Minnesota municipal corporation (“City”), and RT Minneapolis Franchise, LLC, a Delaware limited liability company (“RT”), entered into a Reciprocal Parking Easement Agreement dated July 1, 2004, recorded as Document No. 3473952 on October 22, 2004 in the Office of the County Recorder, Washington County, Minnesota (the “Easement”). B. The City conveyed its interest in the Easement to the EDA by Quit Claim Deed dated August 18, 2017, recorded as Document No. 4125205 on August 23, 2017 in the Office of the County Recorder, Washington County, Minnesota. C. RT conveyed its interest in the Easement to MC I by Limited Warranty Deed dated August 14, 2018, recorded as Document No. 4165217 on August 20, 2018 in the Office of the County Recorder, Washington County, Minnesota. D. The EDA and MC I desire to terminate the Easement. NOW, THEREFORE, in consideration of the above recitals and One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the EDA and MC I hereby declare that: 1. Termination of Easement. The Easement is hereby terminated in its entirety effective as of the date of this Easement Termination. 2. Governing Law. This Easement Termination shall be construed in accordance with the laws of the State of Minnesota. 1 3. Severability. The invalidity of any covenant, restriction, condition, limitation, provision, paragraph or clause of this Easement Termination, or any part of the same, or the inapplicability thereof to any person or circumstance, shall not impair or affect in any manner the validity, enforceability, or effect of the rest of this Easement Termination, or the inapplicability of any such covenant, restriction, condition, limitation, provision, paragraph or clause to any other person or circumstance. 4. Binding Effect. This Easement Termination shall run with Parcel A and Parcel B, as defined in the Easement, and is binding upon the heirs, successors, executors, administrators and assigns of the parties hereto. 5. Counterparts. This Easement Termination may be executed in any number of counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument. \[Signatures on following pages\] 2 IN WITNESS WHEREOF, the undersigned has caused this instrument to be executed the day and year first above written, intending to be legally bound thereby and warranting authority to execute the same. COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY By ________________________________ Myron Bailey Its President By ________________________________ Jennifer Levitt Its Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON ) The foregoing was acknowledged before me this _______ day of ___________, 2019, by Myron Bailey and Jennifer Levitt, the President and Executive Director, respectively, of the Cottage Grove Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. ____________________________________ Notary Public 3 MC I INVESTORS, LLC ANVARY FAMILY PARTNERSHIP, Managing Member of MC I Investors, LLC ANVARY GP, LLC, General Partner of Anvary Family Limited Partnership By:______________________________ Chad B. Anvary Its Vice President ANVARY GP 2, LLC, General Partner of Anvary Family Limited Partnership By:______________________________ Chad B. Anvary Its Vice President STATE OF MINNESOTA ) ) ss. COUNTY OF _________________ ) The foregoing was acknowledged before me this ____ day of ________, 2019, by Chad B. Anvary, Vice President of Anvary GP, LLC, General Partner of Anvary Family Limited Partnership, Managing Member of MC I Investors, LLC, a Minnesota limited partnership and Chad B. Anvary, Vice President of Anvary GP 2, LLC, General Partner of Anvary Family Limited Partnership, Managing Member of MC I Investors, LLC, a Minnesota limited liability company, on behalf of the limited liability company. ____________________________________ Notary Public THIS INSTRUMENT WAS DRAFTED BY AND AFTER RECORDING RETURN TO: Korine L. Land (#262432) LeVander, Gillen & Miller, P.A. 633 South Concord Street, Suite 400 South St. Paul, MN 55075 651-451-1831 4 CONSENT TO EASEMENT TERMINATION \[MC I M ORTGAGE\] North American Banking Company, a __________________________ (“Mortgagee”), as mortgagee under that certain Mortgage, executed by MC I Investors, LLC, a Minnesota limited liability company, in favor of Mortgagee, dated August 14, 2018, recorded in the Office of the County Recorder, Washington County, Minnesota on August 20, 2018, as Document No. 4165218 (together with any modifications or supplements thereto, the “Mortgage”), hereby consents to the foregoing Easement Termination by and among the EDA and MC I, it being Mortgagee’s intention that by executing and acknowledging this Consent, the same shall be as if it had executed and acknowledged the Easement Termination. NORTH AMERICAN BANKING COMPANY By:_________________________________ Its:_________________________________ STATE OF ______________ ) ) ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _____ day of _______________, 2019, by __________________________________, the ___________________ of North American Banking Company, a _____________________, on behalf of said ________________________________________. ___________________________________ Notary Public THIS INSTRUMENT WAS DRAFTED BY: Korine L. Land (#262432) LeVander, Gillen & Miller, P.A. 633 South Concord Street, Suite 400 South St. Paul, MN 55075 651-451-1831 5