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CC Staff Report 8-26-19 Driveway EasementCITY COUNCIL STAFF REPORT Monday, August 26, 2019 Subject Approve Driveway Easement for Control Concepts Section CONSENT AGENDA Item No: D.10. Prepared By Erik Henricksen, Project Engineer File No: Planning Case 2019­04 PROPOSED MOTION “The City Council approves the Access Easement Agreement to Lot 2, Block 1, Arboretum Business Park 7th Addition.” Approval requires a Simple Majority Vote of members present. BACKGROUND The developer of Lot 2, Block 1, Arboretum Business Park 7th Addition had an approved site plan on June 24, 2019 (Control Concepts Planning Case #2019­04).  A condition of that site plan approval was to conduct additional traffic analysis for the intersection of Water Tower Place and the northern driveway access due to concerns about traffic conflicts (offset "T" intersection). On July 8, 2019, a traffic assessment memorandum was provided by Max Moreland, P.E. with Spack Consulting.  One conclusion of the memorandum was to realign the northern access with Water Tower Place to eliminate overlapping left turning movements (remove offset "T" intersection).  This conclusion was based on the guidelines developed by Carver County, which also reflect the standards adopted by the Minnesota Department of Transportation.  Staff agreed with the assessment of the traffic memorandum and conditioned the developer during the building permit phase to realign the northern access in an effort to create a safer intersection alignment.  On July 12, 2019, Loucks provided an updated site plan illustrating this realignment.  The updated realignment required approximately 210 square feet of area be covered within an access easement as it encroached onto a city Outlot.  Allowing for an access easement to be executed on a relatively small portion of city property (approximately 15.5 feet of street frontage) to ensure a safer intersection alignment along a collector street, while maintaining the functionality of the site, was found to be a reasonable proposal by staff. RECOMMENDATION Staff recommends the approval of the attached Access Easement Agreement as it promotes a safer intersection alignment and better access management along the collector street "Century Boulevard," while maintaining the functionality of the approved site plan for Control Concepts. CITY COUNCIL STAFF REPORTMonday, August 26, 2019SubjectApprove Driveway Easement for Control ConceptsSectionCONSENT AGENDA Item No: D.10.Prepared By Erik Henricksen, Project Engineer File No: Planning Case 2019­04PROPOSED MOTION“The City Council approves the Access Easement Agreement to Lot 2, Block 1, Arboretum Business Park 7thAddition.”Approval requires a Simple Majority Vote of members present.BACKGROUNDThe developer of Lot 2, Block 1, Arboretum Business Park 7th Addition had an approved site plan on June 24, 2019(Control Concepts Planning Case #2019­04).  A condition of that site plan approval was to conduct additional trafficanalysis for the intersection of Water Tower Place and the northern driveway access due to concerns about trafficconflicts (offset "T" intersection).On July 8, 2019, a traffic assessment memorandum was provided by Max Moreland, P.E. with Spack Consulting. One conclusion of the memorandum was to realign the northern access with Water Tower Place to eliminateoverlapping left turning movements (remove offset "T" intersection).  This conclusion was based on the guidelinesdeveloped by Carver County, which also reflect the standards adopted by the Minnesota Department ofTransportation.  Staff agreed with the assessment of the traffic memorandum and conditioned the developer during thebuilding permit phase to realign the northern access in an effort to create a safer intersection alignment.  On July12, 2019, Loucks provided an updated site plan illustrating this realignment.  The updated realignment requiredapproximately 210 square feet of area be covered within an access easement as it encroached onto a city Outlot. Allowing for an access easement to be executed on a relatively small portion of city property (approximately 15.5 feetof street frontage) to ensure a safer intersection alignment along a collector street, while maintaining the functionality ofthe site, was found to be a reasonable proposal by staff.RECOMMENDATIONStaff recommends the approval of the attached Access Easement Agreement as it promotes a safer intersection alignment and better access management along the collector street "Century Boulevard," while maintaining the functionality of the approved site plan for Control Concepts. ATTACHMENTS: Access Easement Agreement 204463v1 Page | 1 (reserved for recording information) ACCESS EASEMENT AGREEMENT THIS ACCESS EASEMENT AGREEMENT (“Agreement”) is made, executed and entered into this _____ day of _____________, 2019,by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation (“Grantor”) and ZION INVESTMENTS, LLC, a Minnesota limited liability company (“Grantee”). RECITALS A. Grantor is the owner of certain real property located in the City of Chanhassen, County of Carver, and State of Minnesota, hereinafter referred to as “Parcel A” and legally described as: Outlot B, Arboretum Business Park B. Grantee is the owner of certain real property located in the City of Chanhassen, County of Carver, and State of Minnesota, hereinafter referred to as “Parcel B” and legally described as: Lot 2, Block 1, Arboretum Business Park 7th Addition C. Parcel “A” abuts Parcel “B”. AGREEMENT NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, it is hereby mutually agree by the Grantor and Grantee as follows: 1. Grant of Easement. The Grantor hereby grants, transfers and conveys to the Grantee and its successors and assigns for the benefit of Parcel B, an appurtenant perpetual access easement for vehicular and pedestrian ingress and egress purposes over and across those portions of Parcel A described on the attached Exhibit “A” and depicted on Exhibit “B” (“Easement Premises”) for access 204463v1 Page | 2 by vehicles and pedestrians to and from public streets and driveways to Parcel B. Grantee shall have no rights to use any other portion of Parcel A, except only those rights specifically granted herein. 2. Rights. The rights provided under this Agreement shall include the Grantee’s right to construct, operate, repair and maintain a driveway (“Driveway”) within the Easement Premises over, on, under, across and through the Easement Premises. This Agreement shall include the rights of the Grantee, its employees, contractors and agents to enter upon the Easement Premises at all reasonable times to construct, reconstruct, inspect, repair, and maintain a Driveway over, across, on, under, and through the Easement Premises, together with the right to grade, level, fill, drain, pave, and excavate the Easement Premises, and the further right to remove trees, bushes, undergrowth, and other obstructions interfering with the location, construction, and maintenance of the Driveway. 3. Use of Access Easement. The Easement Premises shall be used by Grantee solely for vehicular and pedestrian ingress and egress purposes only by and for Grantee, and Grantee’s successors, assigns, occupants, tenants, employees and/or business invitees. No other right to use any other portion of Parcel A is granted hereunder. 4. Maintenance and Repair. Grantee shall be responsible for all costs associated with the construction, maintenance, improvement, repair or reconstruction of the Driveway, including snow removal, and sweeping. Grantee shall maintain the Easement Premises, including landscaping located within the Easement Premises, in a neat, presentable and safe condition, at Grantee’s sole cost and expense. 5. Restoration. Upon completion of any work requiring the opening of the Easement Premises, Grantee shall, in all cases, place the Easement Premises in as condition as good as it existed prior to the Grantee’s work. 6. Indemnification. Grantee shall indemnify and hold the Grantor harmless from and against all liability, actions, claims, demands, costs, damages, or expense of any kind which may be brought or made against the Grantor relating to accidents, injuries, loss, or damage of or to any person or property occurring on or about the Easement Premises. Such indemnity shall not apply to the extent of any loss or claim due to or arising from the negligent or wrongful acts or omissions of the Grantor, its officials, employees or agents. Nothing contained in this Agreement shall be construed as a waiver by the Grantor of any limitations on liability contained in Minnesota Statutes, Chapter 466. 7. Insurance. The Grantee and any future owners of Parcel B shall, at all times during the term of this easement agreement maintain comprehensive general liability insurance coverage of the Easement Premises in amounts equivalent, at a minimum, to the municipal liability limits in effect at any given time under Minnesota State Law. [Presently, under Minnesota Statutes, Section 466.04, the municipal liability limits in effect for 2015 are $500,000 per person and $1,500,000 per occurrence; limits are double for the release of hazardous substances]. In the event that the statutory municipal limits of liability under state law are increased, the amounts of coverage shall be increased to the limits of municipal liability. 204463v1 Page | 3 8. Compliance with Applicable Laws. The Grantee shall at all times comply with all applicable laws, ordinances, rules, regulations, and codes, federal, state, and local, whether now or hereafter promulgated or enacted in its construction of the driveway, use and maintenance of the driveway and Easement Premises. 9. Remedies/Waivers. The following shall constitute an event of default under this Agreement: a. either party interferes with the uses of the other party granted and/or reserved under this Agreement and the interfering party fails to cure such default within twenty-four (24) hours after receiving written notice of the default from the aggrieved party; or b. a party defaults in any other manner under this Agreement and fails to cure such default within thirty (30) days after receiving written notice of the default from the aggrieved party, specifically, with regard to any interference with the ingress and egress by the Grantees, their successors and assigns, the Grantees will be considered an aggrieved party. If the defaulting party fails to cure the default within the applicable cure period set forth above, the aggrieved party may exercise one or more of the following remedies: (i) cure the default and charge the cost thereof including reasonable attorneys’ fees to the defaulting party and also such costs shall be payable upon demand; and (ii) institute an action for specific performance, injunctive relief, or any other remedy available at law or in equity. Any action seeking one or more forms of relief shall not be a bar to an action at the same or subsequent time seeking other forms of relief. The costs of any such action, including reasonable attorneys’ fees of the prevailing party, shall be paid by the party not prevailing. Any delay in realizing, or failure to realize, on any remedy herein for a default hereunder shall not be deemed a waiver of that default or any subsequent default of a similar or different kind, and no waiver or any right or remedy hereunder shall be effective unless in writing and signed by the person against whom the waiver is claimed. 10. Entire Agreement. This Agreement contains the complete understanding and agreement of the parties hereto with respect to all matters referred to herein, and all prior representations, negotiations, and understandings are superseded hereby. 11. No Waiver. No waiver of any default of any obligation by any party hereto shall be implied from any omission by the other party to take any action with respect to such default. 12. Notices. All notices permitted or required to be given under this Agreement shall be in writing and shall be deemed to have been given (a) when personally delivered, (b) one business day after being delivered to a reliable and recognized overnight courier or messenger service which provides receipts of delivery, with fees prepaid or charged to the sending party, or (c) three business days after being deposited in the United States mail in a sealed envelope by certified mail, postage prepaid, addressed to the respective party at the address set forth herein or to such other address as set forth in a notice given in accordance with this Section. The notice addresses of the initial Owners are as follows: 204463v1 Page | 4 Grantor: City of Chanhassen 7700 Market Boulevard P.O. Box 147 Chanhassen, MN 55317 Attention: City Manager Grantee: Zion Investments, LLC _______________________ _______________________ _______________________ Attention: ______________ 13. Severability. The invalidity of any portion of this Agreement shall not impair in any manner the validity, enforceability or effect of the rest of this Agreement. 14. Governing Law. This Agreement shall be construed in accordance with the laws of the State of Minnesota. 15. Covenants to Run with Land. The easement, rights and the maintenance and repair responsibilities set forth in this Agreement shall run with Parcels A and B and shall be binding upon, and inure to the benefit of the owners, their heirs, successors and assigns, and any other person or entity at any time thereafter who shall become the owner of Parcel A and/or Parcel B. 16. Termination. This Easement shall terminate if the driveway constructed within the Easement Premises is abandoned or relocated by the Grantee from the Easement Premises. Upon abandonment or relocation of the driveway, the Grantee shall remove the driveway and related improvements at the Grantee’s cost. 17. Counterparts. This Easement Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, but all of which, when taken together, constitute the same instrument. 18. Title. The above named Grantor covenants with the Grantee, its successors and assigns, that Grantor is well seized in fee title of the above described easement premises; that Grantor has the sole right to grant and convey the easement to the Grantee; and that there are no unrecorded interests in the easement premises. [Remainder of page intentionally left blank. Signature page follows.] 204463v1 Page | 5 IN WITNESS WHEREOF, this easement has been executed on the day and year first above written. GRANTOR: CITY OF CHANHASSEN By ___________________________________ (SEAL) Elise Ryan, Mayor And __________________________________ Todd Gerhardt, City Manager STATE OF MINNESOTA ) )ss. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this _______ day of __________________, 2019, by Elise Ryan and by 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 204463v1 Page | 6 GRANTEE: ZION INVESTMENTS, LLC By _____________________________ [print name] Its ___________________________ [title] STATE OF MINNESOTA ) ( ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this _______ day of ________________, 2019, by _________________________, the ________________________ of Zion Investments, LLC, a Minnesota limited liability company, on behalf of the entity. ___________________________________ Notary Public THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: (651) 452-5000 AMP/jmo 204463v1 Page | 7 EXHIBIT “A” TO ACCESS EASEMENT AGREEMENT That part of Outlot B, ARBORETUM BUSINESS PARK, Carver County, Minnesota, described as follows: Beginning at a southwest corner of said Outlot B; thence on an assumed bearing North 30 degrees 08 minutes 01 second East along the west line of said Outlot B 15.50 feet; thence South 59 degrees 57 minutes 28 seconds East 27.00 feet, to a south line of said Outlot B; thence North 89 degrees 47 minutes 43 seconds West, along said south line of Outlot B, 31.15 feet to said southwest corner of Outlot B and the point of beginning. 204463v1 Page | 8 EXHIBIT “B” TO ACCESS EASEMENT AGREEMENT