1e Approval of Encroachment Agreement, Autobahn Motorplex
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
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MEMORANDUM
TO:
Todd Gerhardt, City Manager
FROM:
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~~(\\.7 .
Paul Oehme, Dir. Of Public Works/City Engineer'
DATE:'
May 29,2007
SUBJ:
Autobahn Motorplex, Land Use Review File No. 07-01: Approve
Encroachment Agreement
BACKGROUND
On December 11, 2006, Council approved rezoning of the western portion of the
site, a Conditional Use Permit for development within the Bluff Creek Corridor
with a Variance to locate a stormwater pond, a Conditional Use Permit for
multiple buildings on one parcel, and a Site Plan Agreement for the Autobahn
Motorplex development.
DISCUSSION
The property owner has requested an encroachment agreement be approved to
grade up to 10' of fill over an existing storm sewer pipe. The storm sewer pipe is
reinforced concrete and is designed to withstand this type of load. By
encroaching onto the City's drainage and utility easement a retaining wall can be
eliminated from the development. The retaining wall that is proposed to be
removed faces north and does not face the residential properties to the west.
The storm sewer pipe has been televised by the developer. Staff has reviewed the
tape and finds the pipe in good condition. A letter of credit has been obtained for
any damage that may occur with construction.
Staff has reviewed the revised grading plan in the area and finds it acceptable.
Staff recommends Council approve the encroachment agreement with Autobahn
Motorplex.
Attachments: 1. Agreement
2. Map
c: Bruno Silikowski, Autobahn Motorplex, LLC
The City of Chanhassen · A growing community with clean lakes, aualitv schools, a channina downtown. thrivina h"sinesses,willdilntrails, and beautiful Darks. A areat Dlace to live, work, and play.
c:\documents and settmgs\jearts\local settmgs\te'mporary mtemet files\olk4 u52'907 app encroachment agreeme1'i.t.doc
ENCROACHMENT AGREEMENT
AGREEMENT made this
day of
, 2007, by and between the
CITY OF CHANHASSEN, a Minnesota municipal corporation ("City"), and AUTOBAHN
MOTORPLEX, LLC, a Minnesota limited liability company ("Autobahn").
1. BACKGROUND. Autobahn is the fee owner of
in the City of Chanhassen, County of Carver, and State
of Minnesota, with a street address of
("subject
property"). The City owns an easement for drainage and utility purposes over part of the subject
property. Autobahn wants to grade and place fill over a concrete storm sewer pipe that is in the
easement in accordance with the attached plan, Exhibit "A" ("encroachment").
2. ENCROACHMENT AUTHORIZATION. The City hereby approves the
encroachment on its easement subject to the terms of this Agreement. Prior to Autobahn
encroaching in the City's easement the City will inspect the concrete pipe to verify its condition.
After the encroachment work has been performed the City will again inspect the pipe. If the pipe
has been damaged, the City will repair the pipe and Autobahn must reimburse the City for the cost
of the repairs or replacement if in the City's judgment such work is needed. Autobahn will also
reimburse the City for the cost of the inspections.
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1
3. HOLD HARMLESS AND INDEMNITY. In consideration of being allowed to
encroach on the City's easement, Autobahn hereby agree to indemnify and hold the City harmless
from any resulting damages, judgments, liability and costs the city may incur including costs and
reasonable attorney's fees incurred in enforcing this agreement.
4. TERMINA TION OF AGREE:MENT. The City may, at its sole discretion,
terminate this Agreement at any time by giving the owner of the subject property thirty (30) days
advance written notice.
5. LETTER OF CREDIT. To guarantee compliance with the terms of this
Agreement Autobahn will furnish the City a letter of credit in the form attached hereto as Exhibit
"B" from a bank acceptable to the City in the amount of $
. The letter of credit will
be released by the City when the encroachment work is completed and the final inspection is made
unless the City has drawn on the Letter of Credit.
6. RECORDING. This Agreement shall be recorded against the title to the subject
property.
CITY OF CHANHASSEN
BY:
Thomas A. Furlong, Mayor
AND
Todd Gerhardt, City Manager
AUTOBAHN MOTORPLEX, LLC
BY:
Its
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2
STATEOFMINNESOTA )
( ss.
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me this day of
,2007, by Thomas A. Furlong and by Todd Gerhardt, respectively the Mayor and
City Manager of the City of Chanhassen, a Minnesota municipal corporation, on behalf of the
corporation and pursuant to the authority granted by its City Council.
NOTARY PUBLIC
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
2007, by the
of Autobahn MotorPlex, LLC, a Minnesota limited liability
company, on behalf of the company.
NOT AR Y PUBLIC
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
1380 Corporate Center Curve, Suite #317
Eagan, Minnesota 55121
Telephone: (651) 452-5000
RNK
131766vOl
RNK:05/l7/2007
3
EXHIBIT "B"
TO
ENCROACHMENT AGREEMENT
IRREVOCABLE LETTER OF CREDIT
No.
Date:
TO: City of Chanhassen
7700 Market Boulevard
P.O. Box 147
Chanhassen, Minnesota 55317
Dear Sir or Madam:
We hereby issue, for the account of
Irrevocable Letter of Credit in the amount of $
on the undersigned bank.
(Name of Developer) and in your favor, our
, available to you by your draft drawn on sight
The draft must:
a) Bear the clause, "Drawn under Letter of Credit No.
20_, of (Name of Bank) ";
, dated
b) Be signed by the Mayor or City Manager/Clerk of the City of Chanhassen.
c) Be presented for payment at
(Address of Bank) , on or before 4:00 p.rn. on November 30,
20_
This Letter of Credit shall automatically renew for successive one-year terms unless, at least forty-
five (45) days prior to the next annual renewal date (which shall be November 30 of each year), the Bank
delivers written notice to the Chanhassen City Manager that it intends to modify the terms of, or cancel, this
Letter of Credit. Written notice is effective if sent by certified mail, postage prepaid, and deposited in the
U.S. Mail, at least forty-five (45) days prior to the next annual renewal date addressed as follows:
Chanhassen City Manager, Chanhassen City Hall, 7700 Market Boulevard, P.O. Box 147, Chanhassen, MN
55317, and is actually received by the City Manager at least thirty (30) days prior to the renewal date.
This Letter of Credit sets forth in full our understanding which shall not in any way be modified,
amended, amplified, or limited by reference to any document, instrument, or agreement, whether or not
refened to herein.
This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw
may be made under this Letter of Credit.
This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and
Practice for Documentary Credits, International Chamber of Commerce Publication No. 500.
131766vOl
RNK:051l7/2007
4
We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly
honored upon presentation.
BY:
Its
131766vOl
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