E-7 Approve Special Assessment Agreement and Assessement ReapportionmentCITY OF
7700 Market Boulevard
PC 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: 952.2271140
Fax: 952.227.1110
Park & Recreation
Phone: 952.2271120
Fax: 952.2271110
Recreation Center
2310 Coulter Boulevard
Phone: 952.2271400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227,1130
Fax 952.2271110
Public Works
7901 Park Place
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
MEMORANDUM
TO: Mayor & City Council
FROM: Todd Gerhardt, City Manager
DATE: November 12, 2013 0�
SUBJ: Consider Approving Special Assessment Agreement and
Reapportionment of Assessments
Attached for City Council approval is a Special Assessment Agreement between
Bloomberg Companies, New Chanhassen Holding Company, LLC (Chanhassen
Dinner Theatre) and the City of Chanhassen. In short, Bloomberg Companies and
New Chanhassen Holding Company, LLC have agreed to reapportion $46,307 in
special assessments from Lot 3, Block 1 to Lot 2, Block 1, Chanhassen Transit
Station.
From the city's standpoint, as long as both parties agree to change we do not have any
issues in making the transfer.
RECOMMENDATION
Staff recommends approval of the attached Special Assessment Agreement and
Resolution approving the Assessment Reapportionment.
ATTACHMENTS
1. Special Assessment Agreement.
2. Resolution Approving Special Assessment Agreement and Assessment
Reapportionment.
3. Location Map.
gAadmin \tg\spmia1 assessment agraementdoc
Chanhassen is a Community f or Life -Providing for Today and Planning for Tomorrow
SPECIAL ASSESSMENT AGREEMENT
AGREEMENT made this day of 2013, by and among
the CITY OF CHANHASSEN, a Minnesota municipal corporation ( "City "), BLOOMBERG
COMPANIES INCORPORATED, a Minnesota corporation ( "Owner "), and NEW
CHANHASSEN HOLDING COMPANY, LLC, a Delaware limited liability company
( "Buyer ").
RECITALS
A. Owner is the fee owner of property legally described as Lots 2 and 3, Block 1,
Chanhassen Transit Station, Carver County, Minnesota (collectively "Subject Property ")
and Buyer has entered into an agreement with the Owner to Purchase the Subject
Property.
B. The Subject Property was previously assessed in the amounts stated on Exhibits A and B
for the Downtown Transit Parking Ramp Improvements ("The Project ").
C. The Owner and Buyer have requested that the City reapportion the assessments between
Lot 2 and 3 of the Subject Property in accordance with Exhibits C and D.
D. The Council has determined that the proposed reapportionment of the special assessments
will not materially impair the collection of the assessments.
NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL
COVENANTS, THE PARTIES AGREE AS FOLLOWS:
1. SPECIAL ASSESSMENTS. The special assessments levied against the Subject
Property for The Project are hereby reapportioned in accordance with Exhibits C and D.
2. WAIVER. The Owner and Buyer waive any and all procedural and substantive
objections to the public improvements, the special assessments and the reapportionment of the
special assessment, including but not limited to hearing requirements and any claim that the
assessment exceeds the benefit to the property. The Owner and Buyer waive any appeal rights
otherwise available pursuant to M.S.A. § 429.081.
3. BINDING EFFECT; RECORDING. This Agreement shall be binding upon the
Owner, the Buyer and the Owner's and Buyer's successors and assigns. This Agreement may be
recorded against the title to the Subject Property.
CITY OF CHANHASSEN
Doe. #173397v.1
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Tom Furlong, Mayor
A&Chof 1pa-� # 1
(SEAL) J
AND
d Gerhardt, City Manager
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 municipal corporation, on behalf of the
corporation and pursuant to the authority granted by its City Council.
Notary Public
BLOOMBERG COMPANIES INCORPORATED
BY: Q
Britta L. Bloomberg, Its Preside
STATE OF MINNESOTA )
(ss.
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me this I A � day of
°m 2013, by Britta L. Bloomberg, the President of Bloomberg Companies
Incorporated, a Minnesota corporation, on its behalf.
ptary Public
jW1 EAN M. TIMING
otary Public- Mmesole 31,2019
Doc. #17339%1
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NEW CHANHASSEN HOLDING COMPANY,
LL C , -.
ichael Brindisi, It Manager
STATE OF MINNESOTA )
(ss.
COUNTY OF CARVER )
n The foregoing instrument was acknowledged before me this 1� 1� day of
/ y[_ TyN6&o A 2013, by Michael Brindisi, the Manager of New Chanhassen Holding
Company, LLC, a Delaware limited liability company, on its behalf.
Public
JEAN M. STECKLING
Notary Public Minnesota
My CannY� on Jan D1, 9010
rvwvw� wvvwwv
DRAFTED BY:
CAMPBELL KNUTsoN
Professional Association
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, Minnesota 55121
(651) 452 -5000
Doc. #173397v.1
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hkV:IIlI1itl\
Lot 2, Block 1, Chanhassen Transit Station
PID #: 25.1680020
Description: Downtown Transit Parking Ramp Improvements
Project #:
Assessment Code: 251206
Amount of
Interest
Years
Year
Extra Days
Assessment
Rate %
Covered
Started
of Interest
$404,649.47
6.0%
8
2012
0
Interest will accrue starting February 1, 2010, but principal and interest payments will be
deferred until 2012. Was assessed and deferred in 2011 under code 251105.
Doc. #173397v.1
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Princi al
Interest
P+1
Endin Balance
2012
$40,884.14
$24,278.97
$65,163.11
$363,765.33
2013
$43,337.19
$21,825.92
$65,163.11
$320,428.14
2014
$45,937.42
$19,225.69
$65,163.11
$274,490.72
2015
$48,693.67
$16,469.44
$65,163.11
$225,797.05
2016
$51,615.29
$13,547.82
165,163.11
$174,181.76
2017
$54,712.20
$10,450.91
$65,163.11
$119,469.56
2018
$57,994.94
$7,168.17
$65,163.11
$61,474.62
2019
$61,474.62
$3,688.48
$65,163.10
-
Interest will accrue starting February 1, 2010, but principal and interest payments will be
deferred until 2012. Was assessed and deferred in 2011 under code 251105.
Doc. #173397v.1
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EXHIBIT B
Lot 3, Block 1, Chanhassen Transit Station
PID #: 25.1680030
Description: Downtown Transit Parking Ramp Improvements
Project #:
Assessment Code: 251206
Amount of
Interest
Years
Year
Extra Days
Assessment
Rate %
Covered
Started
of Interest
$130,531.98
6.0%
8
2012
0
Interest will accrue starting February 1, 2010, but principal and interest payments will be
deferred until 2012. Was assessed and deferred in 2011 under code 251105.
Doc. #173397v.1
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Principal
Interest
P+1
Endin Balance
2012
$13,188.42
$7,831.92
$21,020.34
$117,343.56
2013
$13,979.73
$7,040.61
$21,020.34
$103,363.83
2014
$14,818.51
$6,201.83
$21,020.34
$88,545.32
2015
$15,707.62
$5,312.72
$21,020.34
$72,837.70
2016
$16,650.08
$4,370.26
$21,020.34
$56,187.62
2017
$17,649.08
1 $3,371.26
$21,020.34
$38,538.54
2018
$18,708.03
$2,312:31
$21,020.34
$19,830.51
2019 J
$19,830.59
$1,189.83
1 $21,020.34 1
-
Interest will accrue starting February 1, 2010, but principal and interest payments will be
deferred until 2012. Was assessed and deferred in 2011 under code 251105.
Doc. #173397v.1
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Lot 2, Block 1, Chanhassen Transit Station
PID #: 25.1680020
Description: Downtown Transit Parking Ramp Improvements
Project #:
Assessment Code: 251206
Amount of
Interest
Years
Year
Extra Days
Assessment
Rate %
Covered
Started
of Interest
$366,735.14
6.0%
6
2014
0
Doc. #173397v.1
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Principal
Interest
P+1
Endin Balance
2014
$52,576.10
$22,004.11
$74,580.21
$314,159.04
2015
$55,730.68
$18,849.53
$74,580.21
$258,428.36
2016
$59,074.52
$15,505.69
$74,580.21
$199,353.84
2017
$62,619.00
$11,961.22
$74,580.22
$136,734.84
2018
$66,376.14
$8,204.08
$74,580.22
$70,358.70
2019
$70,358.70
$4,221.52
$74,580.22
-
Doc. #173397v.1
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MA No I I ITWI
Lot 3, Block 1, Chanhassen Transit Station
PID #: 25.1680030
Description: Downtown Transit Parking Ramp Improvements
Project #:
Assessment Code: 251206
Amount of
Interest
Years
Year
Extra Days
Assessment
Rate %
Covered
Started
of Interest
$57,056.83
6.0%
6
2014
0
Doc. #173397v.1 7
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Principal
Interest
P + I
Ending Balance
2014
$8,179.81
$3,423.41
$11,603.22
$48,877.02
2015
$8,670.61
$2,932.61
$11,603.22
$40,206.41
2016
$90,190.85
$2,412.37
$11,603.22
$31,015.56
2017
$9,742.30
$1,860.92
$11,603.22
$21,273.26
2018
$10,326.83
$1,276.39
$11,603.22
$10,946.43
2019
$10,946.43
$656.79
$11,603.22
-
Doc. #173397v.1 7
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Date
Motion By
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
RESOLUTION
Resolution No.
Seconded By
RESOLUTION APPROVING SPECIAL ASSESSMENT AGREEMENT
AND ASSESSMENT REAPPORTIONMENT
WHEREAS, Bloomberg Companies Incorporated, a Minnesota corporation ( "Owner ") is
the owner of certain parcels of real property situated in the City of Chanhassen, County of
Carver, State of Minnesota, legally described as Lots 2 and 3, Block 1, Chanhassen Transit
Station ( "Subject Property"); and
WHEREAS, the Owner has entered into an agreement to sell the Subject Property to
New Chanhassen Holding Company, LLC, a Delaware limited liability company ( "Buyer "); and
WHEREAS, the Owner, Buyer and the City of Chanhassen ( "City ") have entered into a
Special Assessment Agreement ( "Agreement') for reapportionment of previously levied
assessments against the Subject Property; and
WHEREAS, consistent with the terms in the Special Assessment Agreement and the
provisions of Minn. Stat. Chapter 429, the Owner and Buyer have petitioned the City for that
reapportionment, waived any rights to appeal or allege procedural irregularities, and agreed to
fully pay the assessments against the Subject Property as reapportioned in Exhibits A and B.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Chanhassen, Minnesota that:
The Special Assessment Agreement is hereby approved and the assessments allocated,
adopted and made payable pursuant to the terms of the Special Assessment Agreement as
shown on the Assessment Roll, attached hereto as Exhibit A and Exhibit B.
2. The owner of the Subject Property may, at any time prior to certification of the
reapportionment to the County Auditor, pay the whole of the assessments on such property,
with interest accrued to the date of payment.
The City Clerk shall forthwith transmit a certified duplicate of this assessment and
Assessment Agreement to the County Auditor to be extended on the property tax lists of the
Doe. #173395v.1
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County. Such assessments shall be collected and paid over in the same manner as other
municipal taxes.
ADOPTED this day of , 2013, by the City Council of the
City of Chanhassen.
Thomas A. Furlong, Mayor
ATTEST:
Todd Gerhardt, City Manager
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EXHIBIT A
Lot 2, Block 1, Chanhassen Transit Station
PID #: 25.1680020
Description: Downtown Transit Parking Ramp Improvements
Project #:
Assessment Code: 251206
Amount of
Interest
Years
Year
Extra Days
Assessment
Rate %
Covered
Started
of Interest
$366,735.14
6.0%
6
2014
0
Doe. #173395v.1
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Principal
Interest
P +'I
Ending Balance
2014
$52,576.10
$22,004.11
$74,580.21
$314,159.04
2015
$55,730.68
$18,849.53
$74,580.21
$258,428.36
2016
$59,074.52
$15,505.69
$74,580.21
$199,353.84
2017
$62,619.00
$11,961.22
$74,580.22
$136,734.84
2018
$66,376.14
$8,204.08
$74,580.22
$70,358.70
2019
$70,358.70
$4,221.52
$74,580.22
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EXHIBIT B
Lot 3, Block 1, Chanhassen Transit Station
PID #: 25.1680030
Description: Downtown Transit Parking Ramp Improvements
Project #:
Assessment Code: 251206
Amount of
Interest
Years
Year
Extra Days
Assessment
Rate %
Covered
Started
of Interest
$57,056.83
6.0%
6
2014
0
Doc. #173395v.1
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Principal
Interest
P+1
Endin Balance
2014
$8,179.81
$3,423.41
$11,603.22
$48,877.02
2015
$8,670.61
$2,932.61
$11,603.22
$40,206.41
2016
$90,190.85
$2,412.37
$11,603.22
$31,015.56
2017
$9,742.30
$1,860.92
$11,603.22
$21,273.26
2018
$10,326.83
$1,276.39
$11,603.22
$10,946.43
2019
$10,946.43
$656.79
$11,603.22
Doc. #173395v.1
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