8. Boley Property: Agreement and Resolution with Victoria & Lundgren Brothers.1
MEMORANDUM
CITY OF �
CHANHASSEN
690 COULTER DRIVE 0 P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Don Ashworth. City Manager
FROM: Kate Aanenson, Planning Director A
DATE: February 21, 1996
SUBJ: Cooperative Agreement and Resolution of the Boley Property Annexation and
Detachment of Property
BACKGROUND
City staff has been working with Lundgren Bros. to resolve a jurisdiction problem with a plat
for over two years. The Boley property (Highlands of Lake St. Joe) was submitted for plat
approval to the City in 1993. A narrow strip of land along the western edge of the property is in
the city of Victoria. The purpose of this settlement agreement is to provide a mechanism to
annex this narrow strip and detach property. This would allow the rear of the westerly lots to be
in the city of Chanhassen and detach property that would be better accessed from Victoria.
To approve the agreement, two actions by the City Council are required; one to approve the
settlement agreement and secondly approve the resolution.
ANALYSIS
The city of Chanhassen will be annexing 2.56 acres of property and detaching .92 acres of
property. The property that is being detached will be accessed via a street in the city of Victoria
in a future development of the Boley property. The agreement also states that if Lundgren Bros.
obtains plat approval on the remaining portion of the Boley property from the City of Victoria,
the City of Chanhassen will provide sewer and water services. The city would receive sewer and
water utility fees from any homes with city services. This agreement eliminates those lots that
would be partially in Victoria and Chanhassen. It also provides the possibility of sewer and
water to future lots on the Boley property. Staff believes this agreement is a rational solution to
having lots in two different jurisdictions and efficient delivery of public utilities.
Don Ashworth
2/22/96
Page 2
RECOMMENDATION
The City Council approves the Cooperation Agreement between the City of Chanhassen, the City
of Victoria and Lundgren Bros. Inc.
Manager's Comments: Kate is correct. Negotiations with Victoria regarding this property have
been going on for over two years. In fact, I think over four years would be a better number.
The plat and development of the parcel could have occurred without any negotiations with
Victoria. However, you, as a potential owner of one of the lots in the development, would find
yourself in the position of having your house in the City of Chanhassen and your backyard in the
City of Victoria. You would have to obtain a variance from Chanhassen to build your deck
because your proposed deck would be less than 25 ft. away from your rear lot line, you would
have to obtain two building permits from each of the cities for fencing your backyard, and you
would have two property tax statements from Carver County. Those are but a few of the
hundreds of possible frustrations you would have had as owner of that lot. Assuredly, a city
manager, planner or council member ten or twenty years from today would be asking the
question, "Why in the world did they let that happen ?" Three issues have blocked the ability to
reach agreement in the past four years: 1) changes in staff /council in Victoria; 2) an adamant
position by Victoria that any "swap" should be "square foot for square foot "; and 3) a recognition
that the State Municipal Annexation Board would assuredly not approve a Chanhassen petition
to either annex Boley II or to annex the parcel representing the backyards of approximately ten
lots in Boley First Addition (parcel primarily in Chanhassen).
Typically the city would not agree to a fixed trunk charge for sewer and water recognizing that
that charge may increase before the subdivision was totally built out. In this particular instance,
the trunk sewer and water systems were completed in 1972 and are currently paid off.
Accordingly, I believe the amounts agreed to and shown in the cooperative agreement are
reasonable. The city attorney did note that no mention is made of payment of SAC charges and
approval should be conditioned upon clarifying that the amounts to be paid are in addition to the
metropolitan SAC charges.
Approval is recommended.
DWA (2- 22 -96)
1
1
L
I
F1
L
COOPERATIVE AGREEMENT
BETWEEN THE CITY OF CHANHASSEN,
THE CITY OF VICTORIA AND
LUNDGREN BROS. INC.
WHEREAS, Lundgren Bros. Inc. ( "Lundgren ") owns property as shown generally on
Exhibit A attached hereto and a portion of that property is located in the City of Chanhassen
and a portion of that property is located within the City of Victoria as shown on Exhibit A;
and
' WHEREAS, Lundgren has requested that the City of Chanhassen agree to the
detachment from the City of Chanhassen of certain property shown on Exhibit B and
annexation thereof to the City of Victoria; and
WHEREAS, Lundgren has requested that the City of Victoria agree to the detachment
' from the City of Victoria of certain property shown on Exhibit C and annexation thereof to
the City of Chanhassen; and
' WHEREAS, Lundgren has requested and the City of Victoria is willing to allow the
City of Chanhassen to provide municipal sewer and water to the remaining property owned
' by Lundgren located in the City of Victoria after the completion of the annexations as
described above.
' NOW, THEREFORE, the parties hereto agree as follows:
1. Annexatior.
' A. Lundgren shall submit to the City of Chanhassen a Joint Resolution attached
hereto as Exhibit D to accept the detachment from the City of Victoria and
' annexation thereof to the City of Chanhassen of that property shown on Exhibit
C which is approximately 2.56 acres and the detachment from the City of
Chanhassen and the annexation thereof to the City of Victoria of that property
shown on Exhibit B which is approximately .92 acres. Attached to said Joint
Resolution shall be a survey and legal description of said properties. The City
Council of the City of Chanhassen shall approve the Joint Resolution at its next
' regularly scheduled Council meeting. The Joint Resolution shall then be
presented to the City of Victoria by Lundgren and the City Council of the City
of Victoria shall approve the Joint Resolution at its next regularly scheduled
t Council meeting.
1 015/220939901/16 /96
& Lundgren shall immediately thereafter file the Joint Resolution with the
Minnesota Municipal Board ( "MMB ") and request that the Joint Resolution be
approved as soon as possible by the MMB pursuant to Chapter 414 of the
Minnesota Statutes. Lundgren shall pay to the MMB all filing fees related
thereto and all costs of appearances, if any, by the City staff or consultants of
the City of Victoria or City of Chanhassen before the MMB related to said
petitions.
It is anticipated that the MMB will be able to act upon same at its next
regularly scheduled monthly meeting.
N
91
Future Annexations.
A. In the event that the Joint Resolution is approved by the MMB, the City of
Chanhassen agrees not to seek or support the annexation of the property owned
by Lundgren now located in the City of Victoria as shown on Exhibit E.
Approval of Plat for Property Owned by Lundgren in the City of Victoria
A. Upon the signing of this Agreement, Lundgren may proceed with the
submission of the concept plan for the development of the property shown
generally on Exhibit F. Lundgren shall proceed to obtain preliminary plat and
final plat approval for the property it owns in the City of Victoria after the
annexation shown generally on Exhibit F hereto, including that portion which
will be or will have been annexed to the City of Victoria pursuant to the Joint
Resolution.
Any proposed preliminary plat and/or final plat shall be subject to the normal
review and approval process. The City of Victoria by entering into this
Agreement is not agreeing to any specific development proposal or lot layout.
The City agrees to a five year vesting period as to all rights for the approved
final plat pursuant to Minnesota Statutes § 462.358, subd. 3c.
Q
Sewer and Water Service to Said Plat.
A. Upon approval of said final plat for property within the City of Victoria as set
forth in paragraph 3 above, the City of Chanhassen shall allow Lundgren to
discharge the sewerage from the homes to be built on lots in said plat into the
municipal sewer system owned by the City of Chanhassen which is located in
Minnewashta Parkway adjacent to said -property on the. east_side_ thereof. The
sewer pipes to be built by Lundgren within said plat at Lundgren's expense
shall conform to the plans and specifications approved by the City of
Chanhassen. Upon completion thereof, those sewer pipes shall be owned by
015/22093990 1/16/96
-2-
1
r
r
1
7
7�
' D. After connection of the sewer and water systems to be built by Lundgren on
the property in the City of Victoria to the sewer and water pipes of the City of
015/220939901/16 /96
-3-
the City of Chanhassen which shall maintain them and allow use of them by
the owners of the lots in said plat forever, subject to the policies, rules and
regulations of the City of Chanhassen which apply to other residential lots in
the City of Chanhassen in that area. The City of Chanhassen shall bill the
owners of each house for said sewer service (to be determined) (or Victoria
collects same).
B. Upon approval of said final plat, the City of Chanhassen shall allow Lundgren
to connect the municipal water system from the homes to be built on lots in
said plat into the municipal water system owned by the City of Chanhassen
'
which is located in Minnewashta Parkway adjacent to said property on the east
side thereof. The water pipes to be built by Lundgren within said plat at
Lundgren's expense shall conform to the plans and specifications approved by
'
the City of Chanhassen. Upon completion thereof, those water pipes shall be
owned by the City of Chanhassen which shall maintain them and allow use of
'
them by the owners of the lots in said plat forever, subject to the policies, rules
and regulations of the City of Chanhassen which apply to other residential lots
in the City of Chanhassen in that area. The City of Chanhassen shall bill the
owners of each house for said water service (to be determined) (or Victoria
'
collects same).
'
C. Except as provided for in this subparagraph C, the City of Victoria waives any
right to assess the lots in said plat for trunk or lateral sewer and water or
charge any fees now or in the future related to such services as long as the
'
City of Chanhassen provides such services. Lundgren will pay to the City of
Victoria an amount of money equal to the number of utility core and
availability charges that are lost to the City of Victoria as a result of Lundgren
not connecting with the City of Victoria future sewer and water systems. The
'
payment would be made at the time of the recordation of the final plat with the
Carver County Recorder and would be based upon the rates in place at the time
'
of final plat approval by the City of Victoria, times the number of buildable
lots platted. The current rates per lot for the City of Victoria for this
agreement are $760 per unit for water core, $525 per unit for water availability
'
and $1,400 per unit for sewer core. These total $2,685 per lot. Lundgren
calculates that there may be 23 lots for a total payment of $61,755. Said
property is presently the subject of a request for MUSA extension by the City
'
of Victoria. Because that approval process is not entirely within either
Lundgren's control or the City of Victoria's, the City of Victoria agrees that no
increase of any utility rates for the property would take effect until after such
'
time as the MUSA amendment was approved.
' D. After connection of the sewer and water systems to be built by Lundgren on
the property in the City of Victoria to the sewer and water pipes of the City of
015/220939901/16 /96
-3-
Chanhassen, Lundgren shall pay at the time of the issuance of each building
permit to the City of Chanhassen the following amount for the lot on which a
building permit is issued within said plat approved by the City of Victoria for
said property: $1,050 per lot for trunk sewer. $1,275 for trunk water.
5. Replat of Lundjzron Property in the City of Chanhassen Upon approval of the
annexations and detachments as outlined in paragraph 1 above, Lundgren shall file an
application for the replat of property shown in Exhibit G with the City of Chanhassen
so that the property will be replatted with the annexed property as shown generally on
Exhibit G.
The City of Victoria agrees that the proposed lots 28 and 29 which will be located in
the City of Chanhassen as shown on Exhibit G may have access to the proposed
platted culdesac in the City of Victoria as shown on Exhibit G in the event that
culdesac is generally so platted at some point in the future in the City of Victoria and
access to the municipal sewer and water lines which Lundgren will construct but will
be owned and maintained by the City of Chanhassen pursuant to paragraph 4A hereof.
6. This agreement may be signed in counterparts and on different dates by each party
without affecting the validity thereof.
Lundgren Bros., Inc.
By
Its
Date
City of Chanhassen
By
Its
And By
Its
Date
015/22093990 1/16/96 -4-
F�
7
0
J
t
i
015/220939901/16 /96
City of Victoria
By —
Its —
And By
Its
Date
-5-
m . = "= m = = m m= m= m== m m m m
IQ
AV
r.
E--q
PROPOSED MUNICIPAL
BOUNDARY CHANGES
?%
r.AO
z
LIZ
a
/ o
H 1
PUBLIC ROAD ,��., 22.400 SF.
?o
, o f t+,00 u. 34,000 u.
61.100 u. 18,300 V. a2,AO0 Sr. 30AOO Sr. SW. u. 20. Sr.
LUNDGREN EROS. CONSTRUCTION /'eOLEY pROPERTY' BOUNDARY LINE
pREPARED FOR: LUNDGREN ,ROS. CONSTR. INC.
!Y: SATNRE . MMOUIST. INC.
BOLEY PROPERTY (HIGHLANDS ON LAKE ST. JOE I
CONCEPT SKETCH
,wunA .fV unn.
,AVOW wain.
K`/fAA 7lwn
EXHIBIT 13
i
Wb a� as as �a a a� a is a a� is as
PROPOSED MUNICIPAL
BOUNDARY CHANGES
e
/ 0
U ! e
H
H I
W \
w `
PUSL$C ROAD
J
$9.200 K. 24.700 f%. 22.400 SF, 20.000 sF, 20,000 v. Yo,000 SF.
s,,,00 sF. a4,000 Sr.
t2.404 SF.
z
W
N
Q
Z
�
~
Q
F
0
LUNDGREN BROS.CONSTRUCTION /-BOLEY PROPERTY' BOUNDARY LINE
PREPARED FOR; LUNOGREN BROS. CONSTR. wC.
SYi $A7NR9 • 6TN00015T. WC.
GOLEY PROPERTY (HK ON LAKE ST. JOE)
CONCEPT SKETCH
10I1719a , A2v,flD Mire.
112v4[0 liliers•
.evseo ir..m
t
I
EXHIBIT D
CITY OF CHANHASSEN RESOLUTION NO.
' CITY OF VICTORIA RESOLUTION NO.
JOINT RESOLUTION BETWEEN THE CITY OF CHANHASSEN
' AND THE CITY OF VICTORIA FOR THE CONCURRENT DETACHMENT
AND ANNEXATION OF INCORPORATED LAND PURSUANT TO
' MINNESOTA STATUTE SECTION 414.061
WHEREAS, the City of Chanhassen desires to detach a parcel of property
approximately 0.92 acres in size and legally described as follows:
[Legal description to be supplied]
(hereinafter Parcel A)
' AND WHEREAS, Parcel A abuts the City of Victoria and the City of Victoria desires
to annex said property to improve boundary delineation and appropriate development of the
above - described property; and
' WHEREAS the City of Victoria desires to detach a parcel of property approximately
2.56 acres in size and legally described as follows:
[Legal description to be supplied]
(hereinafter Parcel B)
AND WHEREAS, Parcel B abuts the City of Chanhassen and the City of Chanhassen
' desires to annex said property to improve boundary delineation and appropriate development
of the above described property.
' NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Chanhassen, Carver County, State of Minnesota, as follows:
' The Ciry of Chanhassen agrees to the above - described detachments and
annexation of Parcel A and Parcel B. That this joint resolution of the City of
Chanhassen and the City of Victoria shall be submitted to the Minnesota
' Municipal Board with the intent and request that the Municipal Board
concurrently detach Parcel A from the City of Chanhassen, and_ annex_Earcel -A
to the'City of Victoria and detach Parcel B from the City of Victoria and annex
' Parcel B to the City of Chanhassen at the earliest possible date.
I 015!220945481/15 /96
The motion for the adoption of the foregoing Resolution was duly made by
and seconded by and upon vote being taken thereon, the following
voted in favor thereof:
and the following voted against the same:
and the following abstained:
and the following were absent:
a
whereupon said Resolution was declared duly passed and adopted by the Chanhassen City
Council this — day of , 1996.
ATTEST:
City Clerk
Mayor
City Administrator
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Victoria,
Carver County, State of Minnesota, as follows:
The City of Victoria agrees to the above described. detachments., and
annexations of Parcel A and Parcel B. That this joint resolution of the City of
Chanhassen and the City of Victoria shall be submitted to the Minnesota
Municipal Board with the intent and request that the Municipal Board
015/22094548 1/15/96 -2-
i
i
1
1
1
1
1
1
1
1
1
1
1
concurrently detach Parcel A from the City of Chanhassen and annex Parcel A
to the City of Victoria and detach Parcel B from the City of Victoria and annex
Parcel B to the City of Chanhassen at the earliest possible date.
The motion for the adoption of the foregoing Resolution was duly made by
and seconded by and upon vote being taken thereon, the following
voted in favor thereof:
and the following voted against the same:
and the following abstained:
and the following were absent:
whereupon said Resolution was declared duly passed and adopted by the Victoria City
Council this _ day of , 1996.
ATTEST:
City Clerk
015/22094548 1/15/96
Mayor
City Administrator
-3-
I�
W
H
H
H
x'
W
=I
i
T. JOE
I �
q
1
CITY OF VICTOR
\�Y
M
1
POTENTIAL RESIDENTIAL DEVELOPMENT
(ASSUMING EXCHANGE OF LAND BETWEEN CITIES.)
i i ___i- i--- i- -- -i -i
z
a
wl
i
w
�55
ds
C7 R
�� i
D
t
U
F
z
O
k f
O S
cc
Q5 1
[L
O
M
>-
m
W
W
J
¢
m
Z
J
�� i
M .M m m m m m m m m m m m m ! m m m m
T. Joc
�o
IQL
L o 02
PROPOSED MUNICIPAL BOUNDARIES AND
POTENTIAL RESIDENTIAL DEVELOPMENT
(ASSUMING EXCHANGE OF LAND BETWEEN CITIES.)
� a
19 20
)F ICTARI \ r _ J
i
Q
i
�:
SF
wl
W
I
W
a
H�
ff� R
U
L V
W
O
U
LC vi
0. U
W z 3
J ¢
O U
Q] Z
J
a•
�" •.0
l