2022-551
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: June 13, 2022 RESOLUTION NO: 2022-55
MOTION BY: McDonald SECONDED BY: Schubert
RESOLUTION APPROVING SETTLEMENT AGREEMENT FOR
CSAH 101 PARCELS 1 & 24
WHEREAS, the City of Chanhassen (“City”), having the power of eminent domain as
provided in Minnesota Statutes, Chapter 117, filed a petition in eminent domain proceedings and
motion for early transfer of title and possession to acquire various interests in land in the City of
Chanhassen for the reconstruction, expansion, and improvement of County State Aid Highway 101
from County State Aid Highway 14 (Pioneer Trail) to County State Aid Highway 61 (Flying Cloud
Drive) (the “Project”); and
WHEREAS, the Petition for the Project was filed on November 18, 2019, as a part of Carver
County Court File No. 10-CV-19-1132 (the “Action”); and
WHEREAS, to facilitate the Project, the Action included acquiring certain real property
interests owned by PCH Development, LLC (the “Owner”) and as defined as Parcels 1 and 24 within
the Action (the “Property”); and
WHEREAS, subject to approval by the City Council, representatives of the parties have
negotiated a Settlement Agreement, a copy of which is attached hereto as Exhibit A, which resolves
all outstanding claims and issues between the parties related to the Property; and
WHEREAS, the City Council has fully considered the terms of the Settlement Agreement
and has determined that it is in the best interests of the community to approve it as presented.
NOW, THEREFORE, BE IT RESOLVED that the above-referenced recitals are
incorporated herein to this Resolution.
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the Settlement Agreement
is hereby approved by the City Council of the City of Chanhassen.
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the Mayor and City
Manager of the City are hereby authorized and directed to execute all appropriate documents and take
all necessary actions to facilitate the settlement contemplated herein, with all such actions to be in
accordance with the terms and conditions set forth in this Resolution and the incorporated Settlement
Agreement.
NOW, THEREFORE, BE IT FINALLY RESOLVED, that the Mayor and City Manager
of the City, staff and consultants are hereby authorized and directed to take any and all additional
steps and actions necessary or convenient in order to accomplish the intent of this Resolution.
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PASSED AND ADOPTED by the Chanhassen City Council this 13th day of June, 2022.
ATTEST:
Kim Meuwissen, City Clerk Elise Ryan, Mayor
YES NO ABSENT
Ryan Rehm
McDonald
Campion
Schubert
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EXHIBIT A
The Settlement Agreement
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STATE OF MINNESOTA
COUNTY OF CARVER
The City of Chanhassen,a Minnesota municipal
corporation,
Petitioner,
vs.
PCH Development,LLC,et al,
Respondents.
IN DISTRICT COURT
FIRST JUDICIAL DISTRICT
Case Type:Condemnation
Court File No.10-CV-19-1132
STIPULATION OF SETTLEMENT
AGREEMENT
(Parcels 1 &24)
THIS STIPULATION OF SETTLEMENT AGREEMENT (the "Agreement")is
entered into between the City of Chanhassen,a municipal corporation under the laws of the state of
Minnesota (the "City");PCH Development,LLC (the "Owner");and Paws,Claws &Hooves Pet
Boarding,LLC (the "Tenant")(together with the City referred to herein as the "Parties",or each a
"Party").
Recitals
A.The City,having the power of eminent domain as provided in Minnesota Statutes,
Chapter 117,filed a petition in eminent domain proceedings and motion for early transfer of title and
possession to acquire various interests in land in the City of Chanhassen in the above-captioned matter
for the reconstruction,expansion,and improvement of County State Aid Highway 101 from County
State Aid Highway 14 (Pioneer Trail)to County State Aid Highway 61 (Flying Cloud Drive)(the
"Project").
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B.At the time the petition was filed and on the date of taking,Owner was the owner in
fee simple of those certain real properties located in Carver County and which are legally described
in the attached Exhibit A (the "Properties"or "Parcels 1 and 24"in the above-captioned matter);
and
C.Paws,Claws &Hooves Pet Boarding,L L C,was named in the City's Petition as a
T enant on the Propert ies.
D.The U.S.Small Business Administration was named in the City's Petition as a
M ort gagee,based upon a mort gage to T win Cities-M etr o Certifi ed Development Company dated
September 19,1997,fil ed in the Office of the Carver County Recor der on October 9,1997,as
Document Number 216874,and subsequently assigned to the U.S.Small Business Administration
by Assignment dated September 19,1997,and fi led in the Office of the Carver County Recorder on
October 9,1997,as Document Number 216875.This mort gage was satisfi ed and r eleased on or about
M ay 26,2009.
E .On January 13,2020,the Court fi led its Findings of Fact,Conclusions of L aw and
Order Appr oving Petition and T ransfer of T itle and Possession,On January 31,2020,the Court fi led
its Amended Findings of Fact,Conclusions of L aw,and Or der Approving Petition and T r ansfer of
T itle and Possession (the "Order")in the above matter ,approving the City's acquisition of the
inter ests in the Property and authori zed the City to obtain the early tr ansfer of title and possession of
the Pr operty upon the City's payment to the Owners or deposit with the Court of the City's approved
appraisal value for the Property pursuant to Minnesota Statutes,Section 117.042.
F.On February 18,2020,pursuant to the Order ,the City deposited with the Court
Administrator 's Office $1,383,000 which is the amount of the City's approved appr aised value for
Parcels 1 and 24 (the "Quick Tak e Depos it").
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G.On February 18,2020,the City filed said Order in the Office of the County
Recor der/Registr ar of T itles for Carver County,as Document No.A691199,and fi led the Receipt of
Deposit for the Properties in the Office of the County Recorder/Registrar of Titles for Carver County,
as Document No.A691201,thereby causing title and the ri ght to possession of the Pr operti es to pass
to the City.
H.The Parties have r eached an agreement on the total amount which the City will pay to
the Owner in settlement of all claims which the Owner may have against the City r elated to the taking
by the City of the Properties from the Owner in this matter ,including any r elocation claims,and the
Parties her eby enter this Agreement to confi rm the terms and conditions of said agreement.
Terms of th e Agreemen t
NO W,THEREF O RE,in consideration of their mutual pr omises and other good and
valuable cons ideration,the r ec eipt and sufficiency of which are her eby acknowledged,the Parties
stipulate and agree as follows:
1.Recitals.The r ecitals set forth above are true and accurate and each are incorporated
as materi al terms.
2.Settlement Amount.The Parties stipulate and agree to a global settlement and award
of damages for the taking of the Propert ies in the amount of One Mi llion,Nine Hundred Fourteen
Thousand Dollars and NO/100 ($1,914,000)(the "S ettlemen t Amou n t").L ess the quick take
payment of $1,383,000,the unpaid balance of the Settlement Amount consists of $531,000 ("Un p aid
Balan ce"),payable to the Owner as set forth in Section 3 below.
3.Payment.Within 15 bus iness days aft er execution of this Agreement,the City shall
pay the Unpaid Balance of the Settlement Amount to the Owner by issuing a check in the name of
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PCH Development,LLC and delivering it care of Larkin Hoffman,Attn:Rob Stefonowicz,8300
Norman Center Drive,Suite 1000,Minneapolis,MN 55437.
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5.
Other Considerations.
a.No Appeal.In exchange for the Settlement Amount,the Parties agree not to appeal
this Agreement,the Settlement Amount,any filings or orders in this matter to date,or
the final certificate respecting the Properties.
b.Property Condition.The Owner accepts the Properties in the condition it is in.Owner
reserves the right to request completion of final restoration work (grading and seeding)
on the Properties and,if requested,consents to performance of said work by the City's
contractor upon the Properties.
c.Mortgage.Owner represents and warrants that the mortgage held by the U.S.Small
Business Administration has been satisfied and released.
Full and Final Compromise.The terms and conditions of this Agreement constitute a
full and final compromise of all matters in dispute with respect to the Properties and the Parties,
including any and all relocation claims related to the Property.In consideration of the Settlement
Payment and the other terms and conditions of this Agreement,Owner and Tenant waive any and all
claims Owner or Tenant may have against the City in connection with this condemnation action,
including without limitation,just compensation,statutory remedies,all severance damages,and any
other damages,interest,taxes,expert fees,attorney fees,appraisal fees (including under Minnesota
Statutes,Section 117.036)and costs and disbursements to which Owner or Tenant may otherwise be
entitled.Owner and Tenant waive any and all rights to further notices,viewings,or hearings regarding
this action,including without limitation,the right to participate or claim additional money at any
commissioners'hearings held with the remaining parties within the condemnation action.
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6.Condemnation Action.After this Agreement is executed and payment is issued,the
City may file a Final Certificate and shall file a Discharge of Notice of Lis Pendens in this action with
respect to the Properties.Each Party will bear its own costs in connection with this action.The district
court shall retain jurisdiction to enforce the terms of this Agreement.
7.Entire Agreement.The undersigned state and represent that each has fully read this
Agreement,and that each knows and understands its consequences and legal effect.The Agreement
and the documents incorporated herein contain the entire agreement of the Parties regarding this
matter.
8.Execution.The Parties agree that this Agreement may be executed in separate
counterparts which,taken together,shall be and comprise one agreement.
9.Contingency.This Agreement is contingent upon approval of the City Council of the
City of Chanhas s en.
I 0.Authority.Any person signing this Agreement in a representative capacity represents
and warrants by s igning this Agreement that it is the signer's intent to bind the principal being
repres ented to the terms and conditions of this Agreement,that the s igner has been authorized to bind
the principal to the terms and conditions ,and that it is the intent of the principal to be s o bound.
IN WI TNE S S THERE OF,the undersigned have each executed this Agreement on the day
and year s et forth below.
{R emainder ofP age Intentionally Left B lank;Signature Pages to Follow}
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pate4:B />f ,2 0 22
{Signa ture Pag e for Owner an d Tena n t}
OWNER:
PCH DEVELOPMENT,LLC
TENANT:
PAWS,CLAWS &HOOVES PET BOARDING,LLC
»s :15/1 ,2 0 »»
es l 4\
,2 0 2 2
LARKIN HOFFMAN
1)
,Su ite 10 0 0
Min n eap olis,MN 554 37
(9 5 2 )8 3 5 -3 8 0 0
A TTORNEY FOR OWNER AND TENANT
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DOCSOPEN-CH135-61-759027.v1-11/2/21
{Signature Page for the City}
Dated: _______________, 2022 CITY OF CHANHASSEN
________________________________
Elise Ryan, Mayor
________________________________
Laurie Hokkanen, City Manager
Dated: May 31, 2022 KENNEDY & GRAVEN, CHARTERED
s/ Joshua P. Weir
Joshua P. Weir (#0402328)
Fifth Street Towers
150 South 5th Street, Ste. 700
Minneapolis, MN 55402
(612) 337-9300
ATTORNEYS FOR PETITIONER
CITY OF CHANHASSEN
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June 13
EXHIBIT A
CSA1 191_Reconstruction-Pioneer Trail to CSAH 61
Parcels 1 and 24
Property Tax Identificatio n No.25 .60 1-0020
25 .60 1-0 0 10
25.601-0030
Property Address:10500 and 10520 Great Plains Boulevard,Chaska,Minnesota 55318
Property:Abstract
Legal Description of Subject Property:
Lots 1 and 2,Block 1,and Outlot A,PAWS CLAWS AND HOOVES ADDITION,Carver County,
Minnesota.
Leg al Description of Portion of Subject Property to Be_Acquired in Fee:
Parcels IA,lB,1 C,1D and Parcel 24,all as shown on CARVER COUNTY RIGHT OF WAY PLAT
No.29,on file and of record in the office of the County Recorder,Carver County,Minnesota,
containing a total of 201,466 square feet,more or less.
Description of Po rtion of Subject Property to Be Encumbered Herein by Temporary Easement
for Co nstruction Purposes:;
Temporary Easement Parcels 1 C and 1D,forming and being a part of Parcel 1,as shown on CARVER
COUNTY RIGHT OF WAY PLAT No.29,on file and of record in the office of the County Recorder,
Carver County,Minnesota,containing a total of 88,649 square feet,more or less.
Term of Tempo ra ry Easement:
The temporary easement tract will expire on December 31,2021.
Respo ndents In terests
PCH Development,LLC,a Minnesota limited Fee Owner
liability company
U.S .S mall Bus ines s Adminis tration Mortgagee
P aws ,Claws &Hooves P et Boarding,LLC,a Tenant
Minnes ota limited liability company
City of Chanhass en S pecial Ass es s ments ,if any
All other parties unknown,together with Any right,title or interes t within the
unknown s ucces s ors,as s igns ,heirs,devis ees acquired portion of the S ubject Property
and s pous es ,if any
4890-1139-5362,v.1
A-1
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