HomeMy WebLinkAbout20070416 - VIII-B-2FLUEGEL & MOYNIHAN PA.
Attorneys At Law
Donald J. Fluegel * 1303 South Frontage Road, Suite 5
Shawn M. Moynihan Hastings, MN 55033-2477
Daniel J. Fluegel
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To: Mayor Hicks and City Council Members
From: Shawn M. Moynihan ~ira,.-
Date: April 12, 2007
Subject: Crossroads Center East
Vll l-B-Z
Telephone 651-438-9777
Fax 651-438-9775
At the next council meeting, the council will be asked to review and approve the attached Development
Agreement between the City and the Developer of Crossroads Center East.
I direct your attention the attached memo from John Hinzman dated April 2, 2007 which was in the last
council packet. This provides the appropriate background for Crossroads Center East.
The draft of the Development Agreement that is in the packet now is the most current draft as of the time the
council packet was put together. Discussions are still on ongoing between city staff and the Developer
regarding the provisions of the Development Agreement, in particular paragraph 4.
The language of paragraph 4 is still being discussed but the concept is expected to remain the same.
Essentially, the Developer is asking the City to commit for the next three years as to what the parking
requirements for the future developments of Outlot A, B and the two expansion spaces will be, regardless
of any changes in city code during the next three years. The Developer has said he needs his three year
commitment from the City so he can begin marketing Outlots A and B and the two expansion spaces through
perspective buyers. He is asking the City to "freeze" the parking requirement for these parcels so that
perspective buyers know what their parking requirements will be for their future development. The
Developer's concerned about the City changing its parking requirements which would then make the future
development of these parcels more difficult.
The Developer and city staff have been involved in extension discussions during the past two weeks trying
to come up with appropriate language to present to the council for its review and approval. Those
discussions are still ongoing at this time. We are putting this matter on the agenda anyway in hopes that we
can reach an agreement on the language and present it to the council at its next meeting. We are doing
everything we can to keep this project moving forward so that Colburn's can begin their work on their new
facility. In the meantime, the council should review the concepts in paragraph 4. We do not expect the
concepts to change, but perhaps only the numbers will change.
If you have any questions, please contact me.
SMM/ham
* Also admitted to practice in Wisconsin
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VIII-B-2
Memo
To: Mayor Hicks and City Council
From: John Hinzman, Planning Director
Date: April 2, 2007
Subject: Development Agreement -CROSSROADS CENTER EAST
REQUEST
The City Council is asked to approve the attached Development Agreement between the
City and the developers of CROSSROADS CENTER EAST, containing one commercial lot
(former Wal-Mart -future Coborns) and two outlots for further development. The
development is located west of Red Wing Blvd between 33`d Street and Tiffany Drive.
The City Council granted Final Plat approval on March 5, 2007. As a condition of approval,
the developer was required to enter into a development agreement with the city to
memorialize conditions of approval.
GENERAL COMMENTS
Future Development -General Development Plan -The agreement memorializes
review comments from the Coborn's Site Plan related to the General Development Plan
submitted for future development of Outlots A and B and additions to the existing
building.
The agreement states future development consistent with the General Development
Plan shalt be considered to meet the City's parking and access requirements until April
2, 2010, regardless of any changes in the City's ordinances prior to that time, so long as
the proposed expansions do not exceed the square footage shown on the General
Development Plan. Future City approvals including platting and site plan would still be
required.
DEVELOPMENT AGREEMENT FOR
CROSSROADS CENTER EAST
THIS AGREEMENT is made and entered into this day of , 2007, by
and between the City of Hastings, a Minnesota Municipal Corporation ("City") and Crossroads
Mall Inc., a Minnesota Corporation ("Developer"); and
WHEREAS, Developer proposes to plat certain property in the City of Hastings, Dakota
County, Minnesota, which plat is proposed to be called:
Crossroads Center East
and is hereafter referred to as "Subject Property"; and
WHEREAS, Developer plans to undertake the development and construction of a
commercial development on the Subject Property; and
WHEREAS, public hearings have been held providing an opportunity for input by the
neighbors and other interested persons; and
WHEREAS, the Hastings City Council has approved the Developer's proposed
commercial development, subject to Developer entering into this Development Agreement and
otherwise complying with all conditions of city council approval; and
WHEREAS, Developer is signing this Development Agreement fully expecting to bind
rts interest in the Subject Property to the terms of this Development Ageement.
NOW, THEREFORE, it is hereby agreed between the parties as follows:
1. Application of Development Agreement. This Development Ageement shall apply to
the following property in the City of Hastings, Dakota County, Minnesota, legally
described as:
Crossroads Center East,
according to the plat thereof
to be filed in the Dakota County Recorder's Office.
All references in this Development Ageement to a lot, block or outlot,
shall refer to a lot, block or outlot contained in the plat of Crossroads Center East.
2. Authority to Make Agreement. Developer warrants to the City it has full authority to
enter into this Development Ageement and perform the conditions herein contained.
Developer further warrants that this Development Agreement will be recorded against the
Subject Property before any of the Subject Property is transferred or encumbered in any
way. Developer further warrants that there are no other persons or entities having an
interest in the Subject Property.
3. Compliance with Conditions of Preliminary and Final Plat Approval Developer
agrees to comply with all conditions of preliminary plat and final plat approval proposed
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by the City. Those conditions of preliminary and final plat approval shall be considered a
part of this Development Agreement as if set out in this Development Agreement in full.
4. Outlots A and B and Expansion Space. Developer has submitted to the City a general
development plan prepared by GGG, Inc. dated February 6, 2007, a copy of which is
attached hereto as Exhibit A (the "Development Plan") for the development of the
Subject Property together with the adjacent properties legally described as Lot 2, Block 1,
County Crossroads Center 3rd Addition, and Lot 3, Block 1, County Crossroads Center
3rd Addition (collectively the "Development Property"). The Development Plan shows
the proposed development of Outlots A and B of the Subject Property, together with the
expansion of the existing one story building of approximately 76,167 square feet by a
24,200 square foot addition as depicted on the Development Plan ("Expansion Space 1"),
and by a 12,375 square foot addition as depicted on the Development Plan ("Expansion
Space 2") (Expansion Space 1 and Expansion Space 2 collectively referred to as the
"Expansion Space"). Subject to the terms and limitations in this section, for a period of
three (3) years from the date of this Agreement, the City agrees that the Developer or the
Developer's assigns has the right to develop Outlot A, Outlot B and the Expansion Space
in accordance with the Development Plan, and for said three (3) year period no
amendments of the City's Comprehensive Plan, any ordinance or City control shall apply
to or affect the use, development, density, lot size, layout, dedication, plat requirements
or site plan reviews unless agreed to in writing by the City and Developer, which
development must comply with the following terms and conditions:
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(i) Outlot A. Outlot A is approved for and may be developed for commercial
purposes as permitted in a C-4 Zoning District subject only to site plan review, a
replat of the Outlot and compliance with the parking requirements of this section.
The City agrees that the Developer may locate the building within that area of the
Outlot identified on the Development Plan as the building area, and that all
parking, driveways and access requirements for site plan approval, plat approval,
building permits or other use and approvals will be satisfied by the
reconfiguration of the shared parking for the Development Property as provided
for in the Development Plan and this section; provided however, that the
construction of the 43 Parking stalls as depicted on Outlot B or that portion of
Lots 2 and 3 of Block 1 of County Crossroads Center aid Addition designated as
future parking are not required to be constructed in connection with the
development of Outlot A. The City further agrees that any approval required for
the development of Outlot A shall not require or be conditioned upon any
reconfiguration, modification or alteration of the Development PIan including,
without limitation, any requirement for the reconfiguration of any parking,
driveway or vehicular access or pedestrian access. The City acknowledges that
parkland dedication requirement was satisfied as a part of the plat of County
Crossroads Center aid Addition.
(ii) Outlot B. Outlot B is approved for and may be developed for commercial
purposes as permitted in a C-4 Zoning District subject only to site plan review, a
replat of the Outlot and compliance with the parking requirements of this section.
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The City agrees the Developer may locate the building within the areas of the
Outlot identified on the Development Plan as being the building area and that all
parking, driveways and access requirements for site plan approval, building
permits or other use and approvals will be satisfied with the reconfiguration of the
shared parking lot for the Development Property, as provided in the Development
Plan and this section. The City further agrees that any approval required for the
development of Outlot B not shall require or be conditioned upon any
reconfiguration, modification or alteration of the Development Plan including,
without limitation, any requirement for the reconfiguration of any parking,
driveway or vehicular access or pedestrian access. The City acknowledges that
parkland dedication requirement was satisfied as a part of the plat of County
Crossroads Center 3rd Addition.
(iii) Expansion Space. Each Expansion Space is approved for and may be developed
for a building expansion of not more than 12,375 square feet in the Expansion
Space 2, or 24,200 square feet in the Expansion Space 1 within the location
identified on the Development Plan for the building addition, which building
addition may be used for commercial purposes as permitted in a C-4 Zoning
District including, without limitation, a retail or office use subject only to site plan
review and compliance with the parking requirements of this section. The City
agrees that the Developer may locate the building addition within that area
identified as Expansion Area and that all parking, driveways and access
requirements for site plan approval, building permits or other use and approvals
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will be satisfied by the reconfiguration of the shares parking for the Development
Property as provided for in the Development Plan and this section; including the
construction of the additional parking area of 54 parking spaces to accommodate
the Expansion Space 2 and 32 parking spaces as depicted on the site plan for the
Expansion Space 1. The City further agrees that any approval required for the
development of an Expansion Space not shall require or be conditioned upon any
reconfiguration, modification or alteration of the Development Plan including,
without limitation, any requirement for the reconfiguration of any parking,
driveway or vehicular access or pedestrian access. The City acknowledges that
parkland dedication requirement was satisfied as a part of the plat of County
Crossroads Center 3`d Addition.
(iv) ParkiuQ Requirements. Notwithstanding the foregoing paragraphs, the
development of Outlots A and B, as well as the Expansion Space, must
comply with the following parking requirements.
(a). Grocery Buildia~. The development of the 59,432 sq. ft. grocery store as shown
on the General Development Plan ("Grocery Building") must provide 190 parking
spaces on Lot 1 Block 1.
(b). Gas Facility. The construction of the Gas Facility on the east side of the Grocery
Building must provide an additional 38 parking spaces east of the Grocery
Building.
(c). Outlots A and B. For three years from the date of this Development Agreement,
the development of both Outlots A and B must be of a type of use and size such
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that the parking space requirements generated by both developments does not
exceed a combined 233 parking spaces based upon the parking requirements of
the Hastings City Code in effect on the date of this agreement. After said 3 year
period, any development of either Outlot A or B must comply with the parking
requirements in effect in the Hastings City Code at the time of the development.
For 3 years from the date of this Development Agreement, any development of
Outlot B must be of a size and type of use that will generate a parking
requirement of no more than 63 parking spaces when calculated using the parking
requirements in the Hastings City Code in effect on the date of this Development
Agreement. No more than 20 parking spaces from the parking area in Lot 1,
Block 1 can be used to fulfill this requirement. All other required parking spaces
must be located within Outlot B.
For 3 years from the date of this Development Agreement, any development of
Outlot A must be of a size and type of use that will generate a parking
requirement of no more than 190 parking spaces when calculated using the
parking requirements in the Hastings City Code in effect on the date of this
Development Agreement. No more than 170 parking spaces from Lot 1, Block 1
can be used to fulfill this requirement. All other required parking spaces must be
located within Outlot A. Any development of either Outlots A and B more than 3
years after the date of this Development Agreement must meet all parking
requirements of the Hastings City Code in effect at that time.
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(d). Expansion Spaces Y and 2. The development of Expansion Spaces 1 and 2 must
of a type of use and size that will not generate a need for parking in excess of 54
spaces for Expansion Space 1 and 32 spaces for Expansion Space 2.
This Agreement by the City concerning the future development of Outlot A, Outlot B and
the Expansion Space shall remain in effect for only three (3) years from the date of this
Agreement and thereafter any development of Outlots A, B or the Expansion Space shall comply
with all City ordinances and controls in effect at the time of the application.
5. Future Additions to Existing Buildings. The General Development Plan shows a 59,432
square foot building titled "Grocery" and an attached 16,732 square foot "Retail"
building. The General Development Plan also shows a proposed 12,375 square foot
expansion to the Grocery building and a 24,200 square foot expansion to the Retail
building. Nothing in this Development Agreement shall constitute site plan approval of
any such expansion(s). Any expansion of the existing Grocery Building or Retail
Building may require preliminary plat and final plat approvals, as well as site plan
approvals, from the City.
6. Streets, Drives and Utilities. All streets, drives and utilities within the Subject Property
shall be privately owned and maintained. The City will not assume any ownership or
responsibility for any infrastructure within the Subject Property. Any access road into
Outlot B must enter Outlot B at a 90 degree angle.
7. Joint Access and Parking Easements. Before the City will sign the final plat,
Developer must submit to City, for its approval, a joint access and parking easement
which will guarantee parking and access rights to all lots and outlots within the Subject
Property and County Crossroads Center 3ia Addition. This joint access and parking
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easement must be recorded immediately after the plat of the Subject Property is recorded.
8. Mechanical Equipment. Before City will sign the final plat, Developer must secure a
permanent easement, in a form acceptable to the City, allowing the mechanical
equipment for the building on Lot 1, Block 1 of the Subject Property to be located
directly south of said retail building.
9. Uncompleted Site Work. Before City will issue a Certificate of Occupancy for any
structure on the Subject Property, Developer must provide City with a cash escrow in the
amount of 125% of the estimated value for any uncompleted site work, including
landscaping. This escrow will be returned to Developer upon completion of all site
work, including landscaping. If Developer fails to timely complete any uncompleted site
work or landscaping, City shall be allowed to use this cash escrow to complete such
unfinished work.
10. Noise. At no time shall noise originating from the Subject Property exceed 60 decibels
as measured at the property lines of abutting residential properties for any sustained
period of time. Any noise originating from the Subject Property in violation of this
paragraph shall be considered a public nuisance and subject any owner of the Subject
Property to criminal and/or civil penalties as allowed by city ordinances and state law.
11. Development Grading and Utility Plans. Before Developer begins construction, it shall
obtain approval from the City of Hastings of all development, grading and utility plans
required by the City. The Developer agrees to be responsible for any costs incurred by
the City in having the City's consultant review Developer's grading and utility plans.
12. Site Plan Escrow Amounts. Before any building permit shall be issued by the City,
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Developer agrees to deposit with the City, cash escrows in an amount necessary to
guarantee the completion of site plan activities on the Subject Property.
13. Recording the Final Plat. The final plat of the Subject Property must be submitted for
recording with Dakota County within one year from city council approval. Failure to
record the final plat of the Subject Property within that time frame shall cause the City's
approval to be null and void. Developer agrees to pay all costs of recording this
Development Agreement with Dakota County. Developer further agrees that the
Development Agreement will be recorded against the Subject Property before any of the
Subject Property is transferred or encumbered in any way.
14. Signs. Any signs on the Subject Property shall comply with all provisions of Hastings
City Code in effect at the time the sign application is submitted to the City.
15. Minnesota Department ofTransportation Comments City acknowledges that
Developer has complied with all Minnesota Department of Transportation comments and
requirements related to development of the Subject Property.
16. Development Agreement To Run With The Land The terms of this Development
Agreement shall be binding upon Developer and Developer's successors and assigns to
all or any part of the Subject Property and shall run with the land. If any portion of this
Development Agreement is held invalid for any reason, that decision shall not affect the
validity of the remaining portions of this Development Agreement.
17. Notices. Any notices required by this Development Agreement shall be sent to the
parties as follows:
TO THE CITY:
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City of Hastings
Attn: City Administrator
101 E. Fourth Street
Hastings, MN 55033
TO THE DEVELOPER:
Crossroads Mall, Inc.
Dated this _ day of , 2007.
(SEAL)
Dated this _ day of , 2007.
CITY OF HASTINGS, A MINNESOTA
MUNICIPAL CORPORATION
By:
Paul J. Hicks, Mayor
By:
Melanie Mesko Lee,
Assistant City Administrator/City Clerk
CROSSROADS MALL, INC., A MINNESOTA
MUNICIPAL CORPORATION
By:_
Its:
ACKNOWLEDGMENT
STATE OF MINNESOTA )
ss.
COUNTY OF DAKOTA )
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The foregoing instrument was acknowledged before me this _ day of , 2007
by Paul J. Hicks and Melanie Mesko Lee the Mayor and Assistant City Administrator/City Clerk
of the City of Hastings, Minnesota.
NOTARY PUBLIC
ACKNOWLEDGMENT
STATE OF MINNESOTA
ss.
CO LINTY OF DAKOTA )
The foregoing instrument was acknowledged before me this day of ,
2007 by the of Crossroads Mall, Inc., a Minnesota
Corporation who signed this instrument on behalf of said Corporation.
NOTARY PUBLIC
THIS INSTRUMENT DRAFTED BY:
FL UEGEL & MOYNIHAN P.A.
1303 South Frontage Road, Suite #5
Hastings, MN 55033
651-438-9777
(SMM/ham)
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