94-111 CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE:
October 24, 1994
RESOLUTION NO:
94-111
MOTION BY:
Dockendoff
SECONDED BY:
Wing
A RESOLUTION APPROVING SPECIAL ASSESSMENT AGREEMENT WITH LAKEVIEW
HILLS INVESTMENT COMPANY AND LAKEV1EW HILLS INVESTMENT GROUP,
PROJECT NO. 93-32B
WHEREAS, on May 9, 1994, the City Council received the feasibility study for the
Lyman Boulevard and Lake Riley Area Trunk Utility Improvement Project 93-32, and a public
hearing was held on June 13, 1994, continued on July 11, 1994, and July 25, 1994; and
WHEREAS, it became apparent that there were significant extenuating circumstances
associated with the Lakeview Hills Investment Company's property which could affect the
proposed improvements and associated special assessment; and
WHEREAS, it is believed that this special assessment agreement represents a fair
assessment methodology and revenue schedule given the extenuating circumstances with this
property and the agreement of the property owner to dedicate the land needed for the road right-
of-way and improvements.
NOW, THEREFORE, BE IT RESOLVED that the Chanhassen City Council approves the
special assessment agreement shown as Exhibit A between the City of Chanhassen, Lakeview
Hills Investment Company and Lakeview Hills Investment Group dated October 24, 1994.
Passed and adopted by the Chanhassen City Council this 24th day of October, 1994.
ATTEST:
Don Ashworth, i2~ty Clerk/Manager
YES NO ABSENT
Chmiel
Mason
Senn
Wing
Dockendorf
None None
EXHIBIT A
TO
SPECIAL ASSESSMENT AGREEMENT
Le_~al Description of Subject Pro_~erty:
All thai part of the Northeast Quarter of the Northeast Quarter, and Govemmen! Lot 1, of Section
24, Township 116, Range 23, and the Southeast Quarter of the Southeast Quarter of Section 13,
Township 116, Range 23, which lies east of a line drawn 641.67 feet West of, measured at a
righ~ angle to and parallel with the Eas~ line of the Northeast Quarter of the Northeast Quarter
of said Section 24, Township 116, Range 23 and its extensions.
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SPECIAL ASSESSMENT AGREEMENT
AGREEMENT dated December 12, 1994, by, between, and among the City of
Chanhassen, a Minnesota municipal corporation ("City"), and Lakeview Hills Investment Co.
("Company"), and Lakeview Hills Investment Group ("Group"). [Company and Group shall be
collectively referred to as "Developer"].
Recitals
A. Company is the fee owner of the property legally described on the attached
Exhibit A (the "subject property"). Group is purchasing the subject property on a contract for
deed from the Company.
B. The City intends to construct certain improvements (the "Improvements")
described on pages 6 through 17, inclusive in the Feasibility Report for Lake Riley Area Trunk
Utility Improvements and Lyman Boulevard Reconstruction -- City Project No. 93-32 (the
"Feasibility Report") dated May 9, 1994 and prepared by Orr-Shelen-Mayeron & Associates, Inc.
The Feasibility report contains a proposed assessment against the subject property.
C. The parties wish to delineate the amount and timing for the payment of the special
assessment.
NOW, THEREFORE, in consideration of their mutual covenants the parties agree as
follows:
1. The following special assessments (the "Part 3S Assessments") against the subject
property are agreed upon and confirmed:
$51.240.00
$67,100.00
$59,877.00
Trunk Sanitary Sewer
Trunk Watermain
Road Improvements
The Part 3S Assessments shall be spread over ten (10) years, without deferment, together with
7.5% interest on the unpaid balance. The first installment shall be due and payable in 1997.
Interest shall accrue from January 1, 1996.
2. The following additional assessments (the "Part 1N Assessments") against the
subject property are agreed upon and confirmed:
$18,480.00
$24,200.00
$10,670.00
Trunk Sanitary Sewer
Trunk Watermain
Road Improvements
The Part 1N Assessments shall be deferred without interest until January 1, 2006. If the
Minnesota Department of Transportation or any other governmental body acquires any part of
Part 1N identified on Exhibit A hereto before the deferment ends, then the Part 1N Assessments
referred to in this paragraph will be reduced to the amounts obtained by multiplying each of said
assessments by the following fraction:
SQUARE FOOTAGE OF PART 1N REMAINING
AFTER ACQUISITION BY MnDOT
2.75 X 43,560
When the deferment ends, the Part 1N Assessments shall spread over fourteen (14) years.
Interest at the rate of 7.5% on the unpaid balance shall accrue from January 1, 2006. The first
installment shall be due and payable in 2007.
3. The foil.owing additional special assessment (the "Part 2 Assessment") against the
subject property is agreed upon and confirmed:
$68,000.00
Road Improvements
The Part 2 Assessment shall be deferred without interest until January 1, 2006. 'When the
deferment ends, the Part 2 Assessment shall be spread over fourteen (14) years. Interest at the
rate of 7.5% shall accrue from January 1, 2006. The first installment shall be due and payable in
2007.
4. In lieu of paying a special assessment with respect to Part 2 identified on Exhibit
A hereto, for trunk watermain, if the existing apartment complex on Part 2 connects to public
water, there shall be due and payable in cash a water hookup charge for 170 units. The unit
charge shall be based upon sixty percent (60%) of the single-family residence water hook-up
charge rate in effect at the time the charge is paid but shall not be more than the amount obtained
by multiplying $140,250 (the amount of the water hook-up charge as of the date of this Special
Assessment Agreement based on 170 units and a rate equal to 60% of the water hook-up charge
for single-family residences) times the change, during the period from the date of this Agreement
to the date the existing apartment complex is so connected, in the Construction Cost Index (the
"CCI") as described in the City's ordinances. If: (i) the existing apartment complex is torn down
and replaced with a complex containing larger apartment units; (ii) the apartments in the existing
apartment complex are enlarged; or (iii) any other improvements are made to Part 2 which
improvements would significantly increase the water consumption at the existing apartment
complex, the unit rate for the hook-up charge shall be based on the single-family residence water
hook-up charge rate in effect at the time the charge is paid times the number of units based on
then current zoning and usage of Part 2 but subject to any reduction as set forth in the then latest
edition of the service availability charge (SAC) procedures manual published by the
Metropolitan Water Control Commission or its successor agency. The number of units charged
shall, however, not be reduced below 113.
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5. It is anticipated that the Developer may be developing, platting, replatting, zoning,
and rezoning various portions of the subject property. The City agrees that all actions taken by it
with respect to any proposed development, platting, replatting, zoning, rezoning, or other land
use request relative to any portion of the subject property or with respect to any increase in
special assessments in connection with such action shall be made without reference to this
Special Assessment Agreement on the basis of the applicable codes and ordinances of the City.
6. The Developer waives any and all procedural and substantive objections to the
special assessments, including but not limited to hearing requirements and any claim that the
assessments exceed the benefit to the subject property. The Developer waives any appeal rights
otherwise available pursuant to Minn. Stat. § 429.081.
7. The Developer agrees to convey to the City, without cost, a strip of land for road
right-of-way, public utilities and drainage including a construction easement, in accordance with
the following: '
a. The strip of land shall be not more than 80 feet wide in the
approximate location of Lake Riley Boulevard, the exact location of said strip of
land to be subject to the mutual agreement of the City and the Developer.
·
b. The City shall provide the appropriate legal description of the strip
of land and a land survey by a Registered Land surveyor to allow the Developer to
cause the subject property to be platted with the strip of land platted as a separate
parcel of land.
c. Subsequent to agreement on the location of the strip of land and
the creation of the legal description therefor, but prior to the completion of the
platting of such parcel as a separate parcel, the Developer will grant the City an
easement to permit the City immediate access to the strip of land for the
construction of road and utilities thereon.
d. The said strip of land is being conveyed to the City for the limited
purpose of permitting the City to construct thereon a public street and utilities and
no other rights, title or interests in the subject property are to be deemed to have
been conveyed therewith. Without limiting the generality of the foregoing, the
conveyance of the strip of land shall not be deemed to increase or decrease
Developer's rights of access to the balance of the subject property and to Lake
Riley from the road to be constructed on the strip of land.
e. Said strip of land is being conveyed to the City in connection with
the present and pending development of the subject property and the various
portions thereof.
f. Ail construction and reconstruction on the strip of land parcel and
on any other portion of the roadway of which said strip of land is a part shall be
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done in such manner so as to permit reasonably convenient, uninterrupted access
to all portions of the subject property from both directions on said roadway.
8. The dates set forth at Paragraphs 1 through 4 of this Special Assessment
Agreement assume that the Improvements will have been constructed and the assessment hearing
will have been held in a timely fashion in 1996 so as to permit the interest on the assessment
described in Paragraph 1 to commence on January 1, 1996. If, however, the Improvements are
completed and the assessment hearing is held at a later date, all of the dates specified in
Paragraphs 1 through 4 for the commencement of interest, the deferment periods, and the
amortization periods will be correspondingly extended by a period equal to such delay. In the
event that the City fails to take action to authorize construction of all of the Improvements,
Developer may, at its option, terminate this Special Assessment Agreement in which event this
Special Assessment Agreement shall be null and void, no special assessment may be levied
against the Subject Property pursuant thereto and the Developer shall retain all procedural and
substantive objections to any other special assessment proposed to be levied in corinection with
any portion of the Improvements. The City agrees that, in the event that the City takes action to
authorize construction of all of the Improvements, the City will construct all of the
Improvements in accordance with the City's normal construction practices.
9. Neither the Developer nor their respective partners, agents or employees shall be
personally liable for or be subject to any recourse for the payment of any special assessment or
interest described herein.
10. In the event of the subdivision of the subject property, the City will cause the
special assessments to be split among Parts 1N, 2 and 3S in such manner as will substantially
result in the Part 1N Assessments being allocated to Part 1N depicted on Exhibit A, the Part 2
Assessments being allocated to Part 2 depicted on Exhibit A and the Part 3S Assessments being
allocated to Part 3 S depicted on Exhibit A. In the event of the subdivision of any one or more of
Parts 1N, 2 and 3 S, the City will cause the special assessments to be allocable to such Part by the
preceding sentence to be apportioned among the portions of such Part on an area basis.
CITY OF CHANHASSEN
I~onald J.~l,~a'~o~-
Don Ashworth, Ci~anager/Clerk
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and
Its
LAKEVIEW HILLS INVESTMENT GROUP
and~~~~~~/
Its b e_v-,~ ~~
STATE OF MINNESOTA )
) SS.
COUNTY OF ~ )
The foregoing instrument was acknowledged before me this /2.~ day ofk~-e--t-., 1994,
by Donald J. Chmiel and by Don Ashworth, respectively the Mayor and City Manager/Clerk of
the City of Chanhassen, a Minnesota municipal corporation, on behalf of the corporation and
pursuant to the authority granted by its City Council.
·
otary ~
+"" K~.REN J, ENL~r_LH~RDI
I ~/ ,NOTARY PUBLIC--MiI',INESOTA
I- ~ CARVER COUNTY
~' l,Jv Comn;~ss~o~' E~p~res OCT 16. i997
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STATE OF MINNESOTA )
) SS.
COUNTY OF (-i~,~ ~_ ~) ,, )
The foregoing instrument was acknowledged before me this d 15' day of.!l~,z(o,,~ r , 1994,
by (~-.. l..i..., lc ~'~ ~ ,.~.,, ~,. and by ----- ., respectively the C- ~
and - '- of Lakeview Hills Investment Co., on its behalf.
Notary Public, 4 If ,v~, i~, ,-~ County, MN
·
STATE OF MINNESOTA )
) SSo
COUNTY OF
The foregoing instrument was acknowledged b. efor? me this day of k& a k( 1994,
by ~.'~'c, ~ :'x [ ~ ½z- and by d~rr~-a ~' 'r~J,:, , respectively the q,~r~er-c.~ ~,-~er'-
and ~t~,,-~.~ .J~._dr~t of Lakeview Hills Investment Group, on its behalf.
County, MN
K~NJ P' ' :~
HENNEP~ >~>
THIS INSTRUMENT WAS DRAFTED BY:
GRAY, PLANT, MOOTY, MOOTY & BENNETT, P.A.
3400 City Center
33 South Sixth Street
Minneapolis, Minnesota 55402
Telephone: 612-343-2800
GP:75811 v4
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EXHIBIT A
TO
SPECIAL ASSESSMENT AGREEMENT
Legal Description of Subject Property_:
All that part of the Northeast Quarter of the Northeast Quarter, and Government Lot 1, of Section
24, Township 116, Range 23, and the Southeast Quarter of the Southeast Quarter of Section 13,
Township 116, Range 23, which lies east of a line drawn 641.67 feet West of, measured at a right
angle to and parallel with the East line of the Northeast Quarter of the Northeast Quarter of said
Section 24, Township 116, Range 23 and its extensions.
GP:75811 v4
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