HomeMy WebLinkAboutItem 06.hNovember 17, 2011 Item No.
NOVEMBER 21, 2011 CITY COUNCIL MEETING
CONAGRA SITE IMPROVEMENT PERFORMANCE AGREEMENT
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Site
Improvement Performance Agreement (SIPA) between the City of Lakeville and ConAgra
Foods Packaged Foods, LLC.
Adoption of this motion will approve the SIPA associated with the site plan, grading plan
and utility plans for a proposed 27,700 square foot warehouse expansion to the existing
ConAgra building located at 21325 Hamburg Avenue.
Overview
The utility, grading and site plans have been approved administratively to allow the site
work to begin in accordance with the SIPA. ConAgra has applied for the vacation of an
existing drainage and utility easement which will be reviewed by the Planning
Commission at their December 15, 2011 meeting and will be forwarded to the City
Council at a regular meeting thereafter. There are existing sanitary sewer, water, and
gas lines located within the easement to be vacated. These utility lines will be relocated
and a new drainage and utility easement will be established over the relocated utilities.
Primary Issues to Consider
What is the purpose of the SIPA? The SIPA is a development contract that describes the
responsibilities and performance requirements of the developer including security and cash
payments related to the proposed development in accordance with the requirements of the
Zoning Ordinance and City Code. Approval of the SIPA will allow ConAgra to begin work
relocating the utility lines in advance of construction of the building addition.
Supporting Information
• Signed Site Improvement Performance Agreement
• Site plan, grading plan, utility plan, and easement vacation and dedication plan.
Frank Dempsey, AICP, " Associate Planner
Financial Impact: $ None Budgeted: Y/N N/A Source:
Related Documents (CIP, ERP, etc.): Zoning Ordinance
Notes:
SITE IMPROVEMENT PERFORMANCE
AGREEMENT
CONAGRA FOODS.PACKAGED FOODS, LLC
(reserved far breertloy •
AGREEMENT dated , 2011, by and between the CITY OF
LAKEVILLE, a Minnesota muniapaj corporation ("City") and CONAGRA FOODS PACKAGED FOODS,.
LLC, a Delaware limited liability company ("ConAgra ").
1. BACKGROUND.
A. ConAgra owns property located at 21325 Hamburg Avenue in the City of Lakeville,
Minnesota, legally described as Lots 1 and 2, Block 1, GRIST MILL SECOND ADDITION, Dakota away,
Albutesota (hereinafter referred to as the "subject property").
B. ConAgra has submitted a site plan application for construction Lion of an addition to the
existing building on the subject property, and an application for vacation of an existing drainagehltility
easement on the subject property. The site plan includes the dedication of a new drainage/utility
easement to the City. The easement to be vacated and the new easement to be dedicated to the City
are described on Plan B.
2. CONDITIONS OF APPROVAL This Agreement it a condition of City site plan
approval and will be recorded againSt the subject property.
160998v01v02 1 • LKVL:CoNAamFooms SIPA
SRNx11117/2011 (21325 Hambiq Ave., Lakeville, MN)
3. PLANS. The subject property shall be developed in accordance with the following plans
which are on fie with the City. The plains shall not be attached to this Agreement If the plans vary from the
written terms of this Agreement, the written terms shall control. The plans are: •
Plan A — Topographic Survey and Demo Plan
Plan B — Easement Vacation and Dedication Plan
Plan C — Site Plan •
Plan D -- Grading and Drainage Plan
Plan E - Utility Plan
4. OTHER SPECIAL CONDITIONS. Approval of the site plan and site development is
subject to the following conditions:
• The Developer shall provide the Clty with a permanent drainage and utility easement, In
recordable form, as descrbed on Plan B.
• The site must be developed in accordance with the plans approved by the City.
5. LICENSE. The Developer hereby grants the City, its agents, employees, officers and
contractors a lice to enter the subject property to perform all work and inspections deemed appropriate
bjv the City in conjunction with site development
6. SECURITY REQUIREMENTS. To guarantee compliance with the terms of this
Agreement and all of the above plans, the Developer shall furnish the City with a letter of audit from a
bank, in the form attached hereto, cash escrow or a combination cash escrow and Letter of Credit
("security") in the amount of One Hundred Forty-two Thousand Ddlars ($142,000.00). The bank shall be
subject to the approval of the City Administrator. The City may draw down the security, without nodre, for
any violation of the terms of this Agreement or if the security is allowed to lapse prior to the end of the
required term. If the security is drawn down, the proceeds shall be used to afire the default. Upon receipt of
proof satisfactory to the City that work has been completed, with City approval the security may be reduced
from time to time by eighty percent (80%) of the financial obligations that have been satisfied. Twenty
percent (20%) shall be retained as security until all requked site improvements have been completed.
160998v01v02 2 • L&VL.CCoNAaRAFooDSSPA
SRNa11/17/2011 (21325 Hamburg Ave., Lakeville, MN)
7.. RESPONSIBILITY FOR COSTS.
A .The Devekper shall pay all costs incurred by it or the City in conjunction with the
development of the site, including but not limited to legal, planning, engineering and inspection expenses
inured in connec t bn with approval of the site plan, the preparation of this Agreement, review of any other
plans and documents.
B. The Developer shall hold the City and its officers, employees, and agents harmless
from dal ns made by itself and third parties for damages sustained or costs incurred resuitkg from site
approval and development The Developer shall indemnify the City and Its officers, employees, and agents
for all costs, damages, or expenses which the City may pay or incur In consequence of such claims,
i11C�iding attomeys' fees. •
C. The Developer shall reimburse the City for costs incurred in the enforcement of this
Agreement, Inds :ring engineering and attomeys' fees.
D. The Developer shall pay in full all bills submitted to it by the City for obligations
inured under this Agreement within thirty (30) days after receipt. Ens not paid within thirty (30) days shall
accrue interest at the rate of eight percent (8%) per year.
8. MISCELLANEOUS.
A. Third parties sib have no recourse against the City under this Agreement
B. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this
Agreement is for any reason held invalid, such decision shall not affect the validity of the remaining portion
of this Agreement.
C. The action or inaction of the City shall not constitute a waiver or amendment to the
provisions of this Agreement. To be binding, amendments or waivers shall be in writing, signed by the
parties and approved by written resolution of the City Coundl. The City's falure to promptly take legal
action to enforce this Agreement shall not be a waiver or release.
160998v01v02
3 L;CVL:CoNAaAFawn S1PA
SRN:r11/17/2011 (21325 Hamburg Ave., Lakeville, MN)
D. This Agreement shall run with the land and may be modeled against the title to the
subject property. The Developer covenants .with the -City, its successors and assigns, that the Developer
has fee title to the subject property andlor has obtained consents to this Agreement, in the form-attached
hereto, from all parties who have an, interest in the property that them are no unrecorded interests in the
pmperly; and that the Developer will indemnify and hold the City harmless for.any breach of the foregoing
covenants.
E. Each right, power or remedy herein conferred upon the City Is cumulative and in .
addition b every other right, power or remedy, express or implied, now or hereafter arising, available to
City, at law or In equity, or under any other agreement, and each and every right, power and remedy herein
set forth or otherwise so existing may be exerdsect from time to time as often and in such order as may be
deemed expedient by the City and shall not be a waiver of the right to eicercise at any lime thereafter any
other right, powr or nsrriedy.
F. Breach of the terms of this Agreement by the Developer, including nonpayment of
billings from the City, shall be grounds for denial of bucking permits and certificates of ac cupancy, and the
halting of all work on the property.
G. The Developer represents to the City that the development complies with all dty,
county, metropolitan, state, and federal laws and regulations, inducing but not limited to: subdivision
ordinances, zoning ordinances, and envlionrnental regulations. If the City determines that the development
does not comply, the City may, at its option, refuse to allow construction or development work in the
development until the Developer does comply. Upon the City's demand, the Developer shall cease work
until there Is compliance.
9. DEVELOPER'S DEFAULT. In the event of default by the Developer as to any of the
work to be performed by it hereunder, the City may, it its option, perform the work and the Developer shall
promptly reimburse the City for any expense incurred by the City, provided the Developer, except in an
emergency as determined by the Crly, is first given notice of the work in default, not less than forty -eight
(48) hours in advance. This Agreement is a license for the City to act, and it shall not be necessary for the
160998vOlv02 4 LICVL:CoNAINIA Foam SPA
SRN:r11/17/2011 - (21325 Hamburg Ave., Lakeville, MN)
City to seek a Court order for permission to enter the land: Whin - he City does any such work, the City
may, in addition to its other remedies, assess the cost in whole or in part.
10. NOTICES. Required notices to the Developer shall be In writing, and shat be either hand
delivered to the 'Developer, its. employees or agents, or-mailed to the Doper by certified mad at the
following address: 21325 Hanburg Avenue, Lakeville, Minnesota 55044. Notices to the City shall be in
writing and shall be either hand delivered to the City Administrator, or mailed to the Cdr by certlfled mail in
care of the City Adninisbator at the following address: 'Lakeville City Hai, 20196 Holyoke Avenue,
Lakeville, Minnesota 55044.
(SEAL)
STATE OF MINNESOTA )
(ss.
COUNTY OF DAKOTA )
160998v0Iv02
CITY OF LAKEVILLE
BY
Mark Bellows, Mayor
AND
Charlene Friedges, City Clerk
The foregoing, instrument was acknowledged before me this day of
2011, by Mark Bellows and by Charlene Friedges, respectively the Mayor and City Clerk of the City of
Lakeville, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority
granted by its City Council.
NOTARY PUBLIC
5 LICVL CoNAaRA FOOD S1PA
SRNa11/17/2011 . (21325 Hamburg Ave., Lakeville, MN)
COUNTY OF
tab k .
)
(ss.
STATE OF MINNESOTA
DRAFTED BY:
CAALL, KNUTSON
Professional Association
1380 Corporate Center Curve, Suite #317
Eagan, MN 55121
Telephone: (851) 452 -5000
SRN
DEVELOPER:
CONAGRA FOODS PACKAGED FOODS, LLC
BY:
VP of Real Estate & Facilities
' Its
4 t4
• The foregoing instrument was acknowledged before me thls / r day of Yei kj ,
2011, by is n.t+ C, . i7e � k the • j7 - 2 ��A 1 �.s-t j- of ConAgra
Foods Packaged Foods, LLC, a D elaware limited Ilabllity company, on behalf of the company.
A AAA
NOTARY PUBLIC
GENERAL NOTARY- State of Nebraska
MARIANNE ARta N
�
lily Comm. Exp. 9•
160998v01v02 6 LKVL:CoNAGRAFooas SIPA
SRNa11/17/2011 (21325 Ramberg Avc., Lakeville, MN)
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