E-7. Approve Special Assessment Agreement between Bloomberg Companies Incorporated and New Chanhassen Holding Company, LLC -
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Chanhassen isa Community for Life-Providing for Today and Planning for Tomorrow
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MEMORANDUM
TO: Mayor& City Council c*
FROM: Todd Gerhardt, City Manager
DATE: November 14, 2016
SUBJ: Approve Special Assessment Agreement between Bloomberg Companies
Incorporated and New Chanhassen Holding Company, LLC
PROPOSED MOTION:
"The City Council approves a Special Assessment Agreement between Bloomberg
Companies Incorporate and New Chanhassen Holding Company, LLC, and that the Executed
Agreement be recorded against the subject property."
City Council approval requires a simple majority vote of the City Council present.
BACKGROUND
City staff has received a request from Bloomberg Companies, Inc. and New Chanhassen Holding
Company, LLC (Chanhassen Dinner Theatres) to transfer the outstanding special assessments
from New Chanhassen Holding Company, LLC in the amount of$199,353.83 (Lot 2, Block 1,
and a part of Lot 3, Block 1, Chanhassen Transit Station), to Bloomberg Companies, Inc. (Lot 3,
Block 1, excluding that part of Lot 3 included with Lot 2, Block 1, Chanhassen Transit Station).
The purpose of this transfer is to reallocate the remaining balance of the Chanhassen Transit
Station assessments to the Frontier Building, as a result of Bloomberg Companies receiving a
greater benefit from the improvements than the Chanhassen Dinner Theatres. This benefit
increase was determined based on the access of the frontage road that runs parallel to the park
and ride station and Bloomberg Companies. Both parties have agreed to the reassessment of
benefits, and city staff and the city attorney do not see any issues with the transfer, as long as
both parties sign and record the attached agreement.
PH 952.227.1100• www.ci.chanhassen.mn.us• FX 952.227.1110
7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317
Mayor& City Council
Special Assessment Agreement
November 14, 2016
Page 2
RECOMMENDATION
Staff recommends the City Council approve the Special Assessment Agreement and that the
agreement be recorded against both parcels.
ATTACHMENTS
1. Special Assessment Agreement.
2. Location Map.
3. New Assessment Allocation Sheet.
g:\admin\tg\frontier building redevelopment\cc staff report assessment reallocation 11-14-2016.docx
SPECIAL ASSESSMENT AGREEMENT
AGREEMENT made this day of , 2016, by and among
the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City"), BLOOMBERG
COMPANIES INCORPORATED, a Minnesota corporation ("Bloomberg"), and NEW
CHANHASSEN HOLDING COMPANY, LLC, a Delaware limited liability company
("CHC").
RECITALS
A. CHC is the Contract for Deed Purchaser and Bloomberg is the fee owner of:
Lot 2, Block 1, Chanhassen Transit Station, and that part of Lot 3, Block 1, Chanhassen
Transit Station, according to the recorded plat thereof, Carver County, Minnesota, lying
Southerly of Lot 2, said Block 1, and Easterly of the following described line: Beginning
at the Northeast corner of Outlot A, Frontier Cinema Addition, said Carver County;thence
North 00 degrees 33 minutes 27 seconds West, assumed bearing along the Northerly
extension of the East line of said Outlot A, a distance of 40.00 feet; thence South 89
degrees 26 minutes 33 seconds West a distance of 54.37 feet to the Southerly extension of
the West line of said Lot 2; thence North 00 degrees 01 minutes 05 seconds West, along
said line extended a distance of 78.92 feet to the southernmost corner of said West line
and said line there terminating, Carver County, Minnesota.
("CHC Property").
B. Bloomberg is the fee owner of:
Lot 3, Block 1, Chanhassen Transit Station, according to the recorded plat thereof, Carver
County, Minnesota.
Except that part of said Lot 3 lying southerly of Lot 2, Block 1, said Chanhassen Transit
Station, and easterly of the following described line:
Beginning at northeast corner of Outlot A, said Frontier Cinema Addition; thence
North 00 degrees 33 minutes 27 seconds West, assumed bearing along the northerly
extension of the east line of said Outlot A, a distance of 40.00 feet; thence South 89
degrees 26 minutes 33 seconds West a distance of 54.37 feet to the southerly
extension of the west line of Lot 2, Block 1, said Chanhassen Transit Station; thence
North 00 degrees 01 minutes 05 seconds West, along said line extended, a distance of
78.92 feet to the southernmost corner of said west line and said line there terminating.
("Bloomberg Property").
C. The City has imposed a special assessment for the Downtown Transit Parking Ramp
Improvement, assessment code 251402 ("The Project Assessment") against the CHC
Property which has an unpaid balance of$199,353.83.
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189749v1 1
D. Bloomberg and CHC have requested that the City reapportion The Project Assessment
from the CHC Property to the Bloomberg Property.
E. The City Council has determined that the proposed reapportionment of the Project
Assessment 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 Project Assessment levied against the CHC
Property is hereby reapportioned to the Bloomberg Property.
2. WAIVER. Bloomberg and CHC 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. Bloomberg and CHC waive any appeal rights
otherwise available pursuant to M.S.A. § 429.081.
3. BINDING EFFECT; RECORDING. This Agreement shall be binding upon
Bloomberg, CHC and Bloomberg's and CHC's successors and assigns. This Agreement may be
recorded against the title to the Subject Property.
CITY OF CHANHASSEN
BY:
Denny Laufenburger, Mayor
AND
Todd Gerhardt, City Manager
STATE OF MINNESOTA )
(ss.
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me this day of
, 2016,by Denny Laufenburger 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
189749v1 2
BLOOMBERG COMPANIES INCORPORATED
BY:
Britta L. Bloomberg, Its President
STATE OF MINNESOTA )
(ss.
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me this day of
, 2016, by Britta L. Bloomberg, the President of Bloomberg Companies
Incorporated, a Minnesota corporation, on its behalf.
Notary Public
NEW CHANHASSEN HOLDING COMPANY,
LLC
BY:
Michael Brindisi, Its Manager
STATE OF MINNESOTA )
(ss.
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me this day of
, 2016, by Michael Brindisi, the Manager of New Chanhassen Holding
Company, LLC, a Delaware limited liability company, on its behalf
Notary Public
DRAFTED BY:
CAMPBELL KNUTSON,P.A.
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
(651) 452-5000
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PID# 25.1680031
Description: Reapportion: Downtown Transit Parking Ramp Imp
Project#
Assessment Code: 251702
Amount of Interest Years Year Extra Days of
Assessment Rate % Covered Started Interest
$ 199,353.83 6.0% 3 2017 0
Principal &
Interest on Remaining
Principal Interest Property Taxes Principal Balance
2017 62,618.99 11,961.23 $74,580.22 136,734.84
2018 66,376.13 8,204.09 $74,580.22 70,358.71
2019 70,358.71 4,221.52 $74,580.23 -