HomeMy WebLinkAbout20100907 - VI-15To: Honorable Mayor and City Council
From: Nick Egger — City Engineer
Date: August 30, 2010
Re: Approve Utility Disconnection Agreement & Waiver of Assessment
Appeal —1501 Vermillion Street (Napa)
Council Action Requested:
Enclosed for Council approval is an agreement between the City and the owner of the property at
1501 Vermillion Street (Linn Companies), indicating that the City waives the ordinance
requirements that the existing utility services be disconnected from the mainlines. A waiver by
the property owner of their right to appeal any associated assessments has also been included.
Background Information:
Several existing utility service lines remain connected to the mainlines from the old properties
that now comprise the parcel on which the new Napa Auto Parts store will soon be constructed.
All of these lines are connected to mains that are beneath Vermillion Street (Highway 61). City
Ordinances require that if services are not being utilized by redevelopment of a property, that they
be disconnected at the main line so that they no longer create a liability to the utility system or to
a street's structural integrity.
Because of the major impact of working on a trunk highway and the fact that the Highway was
recently overlaid with new pavement, the City would agree to allow the lines to remain
connected, so long as they do not fail and cause settlement issues underneath the highway or
cause other utility system problems. The agreement requires the property owner to immediately
repair the service(s) if any would rupture, and in the event of delayed action on the property
owners part, the City could perform the work and assess all costs back to the property. To ensure
that the City can assess the costs to resolve any situation that may result from the failure of any of
the utility services, the property owner also is required to sign a waiver of assessment appeal.
Attachments:
The agreement and waiver of assessment appeal have both been attached for reference.
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AGREEMENT REGARDING DISCONNECTION OF SEWER AND
WATER SERVICE LINES AND WAIVER OF
PROCEDURAL IRREGULARITY AND ASSESSMENT APPEAL
THISAGREEMENT, is made this _ day of August, 2010, between the City of Hastings,
a Minnesota Municipal Corporation (hereinafter referred to as "City ") having a principle address of
101 East 4' Street, Hastings, Minnesota, 55033, and Linn Investment Properties, LLC, a Minnesota
Limited Liability Company (hereinafter referred to as "Owner ") having a principle address of 1789
Woodlane Drive, Suite A, Woodbury, Minnesota, 55125 -3910.
WHEREAS, Owner is the owner of real property located generally at 1501 Vermillion Street,
Hastings, Minnesota 55033 and legally described as follows:
Lots 13, 14, 15 and 16, Block 6, WM. G. LEDUC'S ADDITION TO THE TOWN OF
HASTINGS, according to the recorded plat thereof, Dakota County, Minnesota (Dakota
County PIN No. 19- 44700 - 161 -06) (hereinafter the "Property ").
WHEREAS, multiple structures previously existed on the Property and were connected to
municipal sewer and water utility mains beneath Trunk Highway 61, otherwise known as Vermillion
Street;
WHEREAS, all structures on the Property have been removed in anticipation of
redevelopment;
WHEREAS, the original water and sewer utility service lines which previously serviced the
former structures on the Property (hereinafter Original Utility Lines ") remain connected to municipal
sewer and water utility mains located beneath Vermillion Street, lying westerly of the Property;
WHEREAS, the Original Utility Lines have insufficient capacity to service the structures
proposed to be constructed as part of redevelopment on the Property and therefore new sewer and
water utility services have or will be installed to connect sewer and water utility services to future
improvements on the Property;
WHEREAS, as a result of the foregoing, the Original Utility Lines are abandoned and will
not be utilized for future improvements on the Property;
WHEREAS, municipal regulations require Owner to disconnect, at its expense, the Original
Utility Lines from the utility mains beneath Vermillion Street now that new sewer and water utility
services are installed to serve the Property;
WHEREAS, disconnection of the Original Utility Lines from the utility mains beneath
Vermillion Street may result in minor damage and loss of integrity to the surface and base of
Vermillion Street and may also result in unwanted traffic interruptions;
WHEREAS, failure to disconnect the Original Utility Lines from the utility mains beneath
Vermillion Street may lead to conditions requiring corrective action in the future which may include,
but are not limited to, leaking pipes, surface settlement resulting from broken pipes, or interference
with other construction projects;
WHEREAS, City is willing to waive the current requirement that Owner disconnect and
remove the Original Utility Lines on the conditions that Owner, its successors and assigns agree: (1)
to remove at its cost the Original Utility Lines if deemed necessary by City; (2) to repair and remedy
at its cost any unwanted conditions directly related to the Original Utility Lines remaining connected
and in place, and to indemnify and hold harmless City for any resulting damage or claims directly
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related to the Original Utility Lines; (3) that if Owner fails to perform removal or repair work in a
timely manner, City may complete the needed work; and (4) that City may assess the cost of any
work to remove the Original Utility Lines against the Property as provided in this agreement; and
WHEREAS, Owner understands that the conditions and potential problems which may result
from the Original Utility Lines remaining connected and in place are not certain and cannot be fully
identified or described with certainty but Owner desires to assume all future responsibility and costs
of correcting such conditions and damage.
NOW THEREFOREIN CONSIDERA TIONof the City's willingness to waive the current
requirement that Owner disconnect and remove the Original Utility Lines, the parties make the
following agreement:
A. City waives the current requirement that Owner disconnect and remove the Original
Utility Lines, subject to the conditions and requirements set forth herein.
B. Upon written demand by City, Owner at its cost shall disconnect and remove the
Original Utility Lines and reasonably restore any disturbed areas to their original
conditions.
C. If Owner fails to perform the removal or repair work as required herein, City may
undertake all work necessary to disconnect and remove the Original Utility Lines and
Owner shall immediately reimburse City for all costs incurred that are directly related
to the Original Utility Lines.
D. If Owner fails to reimburse City for all such costs within 60 days of receipt of a bill
from the City, Owner, for itself, its successors and assigns, agrees to have the
Property assessed for the full amount expended by City to disconnect and remove the
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Original Utility Lines and to restore the area to its original condition. The exact
amount of this assessment is unknown at this time but will be determined by City in
its reasonable discretion.
E. If Owner fails to perform the removal or repair work as required herein, and the City
performs said work, then if the full amount expended by City to disconnect and
remove the Original Utility Lines and to restore the area to its original condition is
$10,000.00 or less, the resulting assessments shall be paid over a period of five years
but if the amount to be assessed is over $10,000.00, the assessment shall be paid over
a ten year period. In addition, interest shall accrue on the unpaid assessment at a rate
equal to the interest rate applied by the City of Hastings for other assessments in the
year the work is performed. If no such assessments are certified for other properties
in the City of Hastings during that year, the interest rate shall be equal to the interest
rate imposed on the most recent assessment certified by the City of Hastings. Owner,
for itself, its successors and assigns, agrees that City can assess an additional $5.00
per year ($25.00 for a five year assessment period or $50.00 for a ten year
assessment) which represents the annual assessment fee imposed by Dakota County
for this assessment.
F. Owner, for itself, its successors and assigns, agrees that City can certify this
assessment to Dakota County for collection with the real estate taxes without the
necessity of City complying with any of the procedural or notice requirements
outlined in Minnesota Statutes Chapter 429, or amendments thereto.
G. In further consideration of City's agreement to waive the current requirement that the
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Original Utility Lines be removed, Owner, for itself, its successors and assigns, also
agrees to waive any right to appeal the amount assessed against the Property for these
removal and repair costs, whether the basis for the appeal is that the assessment
exceeds the benefits to the Property or on any other basis whatsoever.
H. Where reference is made herein to Owner, reference shall be to Owner, its successors
and assigns as to the Property and the rights and obligations hereunder shall run with
the land and shall burden the Property and all subsequent Owners thereof and City
shall record this Agreement on the public property records to provide notice of this
agreement and all obligations hereunder to subsequent Owners of the Property.
I. Owner shall indemnify and hold harmless City for any damages or claims directly
related to the Original Utility Lines remaining connected and in place pursuant to this
agreement.
The City and Owner enter and sign this agreement with full understanding of their legal rights and
acknowledge they have had sufficient opportunity to discuss this matter with an attorney of their
choosing.
Dated: , 2010. CITY OF HASTINGS,
A Minnesota Municipal Corporation
IC
Paul J. Hicks, Its Mayor
(SEAL)
By:
Melanie Mesko Lee,
Assistant City Administrator /City Clerk
5
Dated: 2009. OWNER:
Linn Investment Properties, LLC
C
Stephen Linn, Its Chief Manager
ACKNOWLEDGMENT
STA TE OF MINNESOTA )
) ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this _ day of , 2010, by
Paul J. Hicks and Melanie Mesko Lee, the Mayor and Assistant City Administrator /City Clerk of the
City of Hastings, a Minnesota Municipal Corporation.
Notary Public
ACKNOWLEDGMENT
STATE OF MINNESOTA)
) ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this _ day of , 2010, by
Stephen Linn as Chief Manager of Linn Investment Properties, LLC, on behalf of the Corporation.
Notary Public
THIS INSTRUMENT DRAFTED BY.•
FL UEGEL LA W FIRM P.A.
1303 South Frontage Road, Suite #5
Hastings, MN 55033
651 -438 -9777
(DAN)
no