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1h. Special Assmt Agreement Next Steps Learning CenterCITY OF 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.2271100 Fax 952.2271110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 MEMORANDUM TO: Todd Gerhardt, City Manager FROM: Kate Aanenson, AICP, Community Development Director SUBJ: Special Assessment Agreement — Next Steps Learning Center DATE: June 10, 2013 In PROPOSED MOTION "The Chanhassen City Council adopts the Special Assessment Agreement between the City of Chanhassen and Spaude Holding L.L.C." City Council approval requires a simple majority vote. BACKGROUND Finance Phone: 952.2271140 In 2012 Next Steps Learning Center, located at 1430 Park Court, moved into the Fax, 952.227.1110 building previously occupied by Early Beginnings Day Care; at which time cosmetic remodeling was done. The Metropolitan Council (MCES) conducts Sewer Park & Recreation Availability Charge (SAC) audits every three years. As a part of this audit it was Phone: 952.2271120 determined that five additional SAC units were due at the 2012 rate, or $11,825.00. Fax 952 227.1110 Recreation Center ANALYSIS 2310 Coulter Boulevard Phone: 952 227.1400 The City acts as the responsible agency for the collection of these fees. Next Steps Fax: 952.2271404 Learning Center was contacted by the city and told they could appeal the fees to the Metropolitan Council. They appealed to the MCES and were denied based on the Planning & Natural Resources following: Phone: 952.227.1130 Fax: 952.2271110 • The original daycare was licensed for only 42 children, and credit is allowed for that prior demand. However, in early 2012 the client occupancy of the daycare Public works was increased to 94 children. The occupancy increase related to an increase in 7901 Park Place demand on the wastewater system. Phone, 952.227.1300 Fax 952.2271310 . In the beginning of 2012 the Met Council simplified the criteria for daycares to a Senior Center square -foot basis instead of using the daycares' licensed count of permitted Phone: 952.227.1125 children. Fax: 952, 227.1110 • The charge is based on unpaid SAC for wastewater demand used prior to this Web site permit and still needed for the site. wwa ci.chan hassen. mn. us • The building itself may have received only cosmetic changes but the use of the site has materially changed and hence the determination and charges are required. Chanhassen is a Community for Life - Providing torTodayand Planning torTomorrow Todd Gerhardt Next Steps Learning Center Special Assessment Agreement June 10, 2013 Page 2 The City has worked with the owner of the building to secure payment of this fee and offered a Special Assessment. The payments will spread over one year and be due and payable with the taxes in 2014. RECOMMENDATION The Chanhassen City Council adopts the attached Special Assessment Agreement between the City of Chanhassen and Spaude Holding L.L.C. ATTACHMENT Special Assessment Agreement gAfinanee\special assessment agreements\next steps learning center.doe SPECIAL ASSESSMENT AGREEMENT AGREEMENT made this day of , 2013, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ( "City ") and SPAUDE HOLDINGS L. L. C., a Minnesota limited liability company (the "Property Owner "). RECITALS A. Property Owner is the fee owner of the following legally described property in the City of Chanhassen, County of Carver, State of Minnesota, with a street address of 1430 Park Court, Chanhassen, Minnesota, hereinafter referred to as the "Subject Property": Lot 2, Block 1, Rome Park, according to the recorded plat thereof, excepting therefrom the following: That part of Lot 2, Block 1, Rome Park, shown as Parcel 220B on Minnesota Department of Transportation Right of Way Plat Numbered 10 -10, according to the recorded plat thereof. [Property ID #: 25.7510020] B. Property Owner has requested that the City assess the cost of the additional Metropolitan SAC fee that are due and owing as a result of an audit ( "Fee ") against the Subject Property. NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. SPECIAL ASSESSMENT. The City will assess the fee in the amount of Eleven Thousand Eight Hundred Twenty -five and no /100 ($11,825.00) Dollars against the Subject Property. The assessment shall be spread over one (1) year.. The first installment shall be due and payable with taxes payable in 2014. The Property Owner waives any and all procedural and substantive objections to the special assessment, including but not limited to hearing requirements Doc.: 170 15 RNK : 5/ 15/ ?" i requirements and any claim that the assessment exceeds the benefit to Subject Property. The Property Owner waives any appeal rights otherwise available pursuant to Minn. Stat. § 429.081. 2. BINDING EFFECT; RECORDING. This Agreement shall be binding upon the Property Owner and the Property Owner's successors, heirs and assigns. This Agreement may be recorded against the title to the Subject Property. CITY OF CHANHASSEN U Tom Furlong, Mayor (SEAL) E Todd Gerhardt, City Manager PROPERTY OWNER: SPAUDE HOLDINGS L. L. C. BY: Its ow1� STATE OF MINNESOTA ) ( ss. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this day of , 2013, by Tom Furlong and Todd Gerhardt, respectively the Mayor and City Manager of the City of Chanhassen, a Minnesota corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public Doc. #170319v.1 RNK: 5/1512013 STATE OF MINNESOTA ) ( ss. COUNTY OF (J.�,� ) The foregoing instrument was acknowledged before me this 16 4g-- day of 2013, by JE ez-uj4 Sf 4-ln k , the of Spaude Holding L. L. C., a Minnesota limited liability company, on behalf of said limited liability company. CAROL M. DUNSMORE Notary Public - Minnesota Notary Public My commission Expires Jan 31, 2016 THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 Telephone: (612) 452 -5000 RNK Doc. #170319v.1 RNK: 5/15/2013