CC Staff Report 01-04-22City Council Item
January 10, 2022
Item
Resolution 2022-XX: Approve Partial Release of Land from Stone Creek Town
Offices Site Plan Agreement #2004-15, Execution of the Compliance Estoppel
Certificate, and Approve a Resolution Accepting Outlot B, Stone Creek Town
Offices Subject to Receipt of Clear Title.
File No.Planning Case No. 2004-15 Item No: E.10
Agenda Section CONSENT AGENDA
Prepared By Bob Generous, Senior Planner
Reviewed By Laurie Hokkanen
SUGGESTED ACTION
"The Chanhassen City Council approves the attached Partial Release of Land from the Stone Creek
Town Offices Site Plan Agreement #2004-15, authorizes execution of the Estoppel Certificate, and
adopts a resolution accepting Outlot B, Stone Creek Town Offices subject to receipt of clear title."
Motion Type 2/3 Vote
Strategic
Priority Development & Redevelopment
SUMMARY
The City received a request for partial release of Outlot A from the Site Plan Agreement and execution
of an Estoppel Certificate attesting to the compliance of the development to the Development Contracts
and PUD Agreements.
BACKGROUND
The proposed development had the following approvals:
AGREEMENT dated June 22, 1998, by and between the CITY OF CHANHASSEN, a Minnesota
municipal corporation (the "City"), and, BLUFF CREEK PARTNERSHIP, a Minnesota corporation
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(the "Developer") approving Bluff Creek Corporate Center Planned Unit Development. The
Development Contract for Bluff Creek Corporate Center required construction of Stone Creek Drive
north of Coulter Boulevard and the installation of public utilities. The street and utilities for Stone
Creek Drive, a capital improvement project (Street and Utility Project #98-15), was assessed to the
benefiting/petitioning property owners.
On May 23, 2004, the Stone Creek Office Group, LLC entered into a Site Plan Agreement with the City
of Chanhassen. The site plan was for the construction of five three-unit and two five-unit office
buildings on property zoned PUD-IOP. The request also included the replat of a 13.43-acre parcel into
26 lots and 2 outlots. The legal description used in the Site Plan Agreement for the Town Offices
included Outlots A and B. The conditions of approval do not apply to either outlot.
AGREEMENT dated June 14, 2004 by and between the CITY OF CHANHASSEN, a Minnesota
municipal corporation (the "City"), and, STONE CREEK OFFICE GROUP, LLC, a Minnesota limited
liability company (the "Developer"). For the Stone Creek Town Office development, the Development
Contract required construction of the Stone Creek Drive cul-de-sac and the installation of public
utilities extending into the site plan.
DISCUSSION
The proposed development is in substantial compliance with the subdivision approvals. Outlot A will
require final plat approval and site plan review prior to any development on the property.
Outlots A and B, while listed in the Site Plan Agreement, were not part of the approved site plan.
Outlot B was part of Stone Creek Town Office Condominiums. The remnant piece was created as a
result of the widening of Highway 5. The area of the outlot is 0.03 acres (approximately 1,306.8 square
feet). The outlot falls within the Bluff Creek Overlay District and is unbuildable. This piece is bordered
by a parcel owned by Family of Christ Lutheran Church to the south and the Chanhassen Recreation
Center (Lot 2, Block 1, Bluff Creek Addition) to the west. The owner of Outlot B approached the
church to see if they had any interest in it. They declined the offer. Staff recommends the City accept
this outlot and combine it with the Chanhassen Recreation Center parcel pending a clear title of the
property.
BUDGET
RECOMMENDATION
Staff recommends that City Council approve the Partial Release of Land from the Stone Creek Town
Offices Site Plan Agreement #2004-15, authorize execution of the Estoppel Certificate, and adopt a
resolution accepting Outlot B, Stone Creek Town Offices, subject to receipt of a clear title.
ATTACHMENTS
Resolution Accepting Donation of Real Property - Bluff Creek Partners
Partial Release of Land from Site Plan Agreement
Estoppel Certificate
Stone Creek Town Office Aerial
Bluff Creek Corporate Center & Stone Creek Town Offices Plat Maps
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: January 10, 2022 RESOLUTION NO:2022-XX
MOTION BY: SECONDED BY:
RESOLUTION ACCEPTING DONATION OF CERTAIN REAL
PROPERTY FROM BLUFF CREEK PARTNERS
WHEREAS, Bluff Creek Partners, a Minnesota general partnership, (“Owner”) is the fee
owner of Outlot B, Stone Creek Town Offices (“Property”); and
WHEREAS,the Property is remnant piece created as a result of the widening of
Highway 5 and is unbuildable consisting of approximately .03 acres; and
WHEREAS,the Property borders the City of Chanhassen Recreation Center; and
WHEREAS,the Owner has no use for the Property and has proposed to donate the
Property to the City; and
WHEREAS,the City desires to accept the donation of the Property; and
WHEREAS,Owner has executed a quit claim deed for the conveyance of the Property
to the City, and the deed will be recorded upon adoption of this Resolution; and
WHEREAS,the proposed acquisition of the Property has no relationship to the City’s
Comprehensive Plan; and
WHEREAS,pursuant to Minnesota Statutes Section 465.03, acceptance of a donation of
real property shall be by resolution of the City Council adopted by a two-thirds majority.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
Chanhassen, Minnesota that the donation of the Property is hereby approved and the Mayor and
City Manager are authorized to execute any documents to effectuate the transfer of the Property.
Passed and adopted by the Chanhassen City Council this 10
th day of January, 2022.
ATTEST:
Kim Meuwissen, City Clerk Elise Ryan, Mayor
YES NO ABSENT
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PARTIAL RELEASE OF LAND FROM SITE PLAN AGREEMENT #2004-15
For good and valuable consideration received, CITY OF CHANHASSEN, a Minnesota municipal-
profit corporation (“City”), hereby releases Outlot A, Stone Creek Town Offices, Carver County,
Minnesota, from that certain Site Plan Agreement #2004-15 (“Permit”) dated May 23, 2004, by and
between the City and Stone Creek Office Group, LLC (“Developer”), recorded on November 29, 2004, as
Document No. A402263 in the land records of Carver County, Minnesota.
IN WITNESS WHEREOF, the undersigned has caused this release to be executed as of this ______
day of , 2022.
CITY OF CHANHASSEN
BY:
(SEAL)Elise Ryan, Mayor
AND:
Laurie Hokkanen, City Manager
STATE OF MINNESOTA )
(ss.
COUNTY OF CARVER)
The foregoing instrument was acknowledged before me this day of , 2022 by
Elise Ryan, Mayor, and Laurie Hokkanen, City Manager, of the City of Chanhassen, a Minnesota municipal
corporation, on behalf of the corporation and pursuant to authority granted by its City Council.
NOTARY PUBLIC
This Instrument was Drafted by:
Fredrikson & Byron, P.A. (bao)
200 South Sixth Street, Suite 4000
Minneapolis, MN 55402
74520253 v1
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ESTOPPEL CERTIFICATE
(Development Contract/PUD Agreement – Stone Creek Town Offices)
Northern States Power Company
414 Nicollet Mall, MZ
Minneapolis, MN 55401
Attn: Timothy S. Mauseth
Re:Outlot A, Stone Creek Town Offices
Ladies and Gentlemen:
Reference is made to that certain (i) Development Contract/PUD Agreement (Developer
Installed Improvements) (“1998 Contract”) dated June 22, 1998, by and between the City of
Chanhassen (“City”) and Bluff Creek Partners (“Bluff Creek”) recorded on October 8, 1998 as
Document No. A236214 in the land records of Carver County, Minnesota; and (ii) Development
Contract/PUD Agreement (Developer Installed Improvements) (“2004 Contract”) dated June 14,
2004, by and between the City of Chanhassen (“City”) and Stone Creek Office Group, LLC
(“Stone Creek”) recorded on August 11, 2004 as Document No. A394123 in the land records of
Carver County, Minnesota, (collectively, the 1998 Contract and the 2004 Contract may
hereinafter be referred to as the “Contracts”).
All capitalized terms used in this Estoppel Certificate and not otherwise defined herein
shall have the meanings ascribed to such terms in the Contracts. The City understands that Bluff
Creek has entered into an agreement with Northern States Power Company (“Buyer”) to acquire
Outlot A, Stone Creek Town Offices (“Property”) which is a portion of Stone Creek Town
Offices, and understands and acknowledges that Buyer is relying on the information set forth in
this Estoppel Certificate in connection with its proposed purchase of the Property.
In consideration of the foregoing, the undersigned hereby certifies to Buyer, Buyer’s
lenders, and their respective successors and assigns as follows:
1.No default currently exists under any terms of the 1998 Contract or the 2004 Contract nor
has any event occurred, which with the passage of time (after notice, if any, required by the
Contracts) would become an event of default under either Contract.
2.Bluff Creek is in compliance with its obligations under the Contract.
3.Stone Creek is in compliance with its obligations under the Contract.
4.The Contracts are valid and enforceable according to its terms against the Property.
5.This certification may not be changed, waived or discharged orally, but only by an
agreement in writing.
6.This certification may be relied upon, and shall inure to the benefit of Buyer, its lenders
and their respective successors and assigns and all parties claiming through or under such
persons or any such successor or assign.
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7.The person signing this certification on behalf of the City is a duly authorized signatory
for the City.
IN WITNESS WHEREOF, the undersigned has caused this certification to be executed as of this
day of , 2022.
CITY OF CHANHASSEN
By:
Laurie Hokkanen, City Manager
This Instrument was Drafted by:
Fredrikson & Byron, P.A. (bao)
200 South Sixth Street, Suite 4000
Minneapolis, MN 55402
74491913 v1
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Stone Creek Town Office
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