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HomeMy WebLinkAboutItem 06.h Date: Item No. RESOLUTION APPROVING SETTLEMENT AGREEMENT INVOLVING PROPERTY LOCATED AT 20171 ICENIC TRAIL Proposed Action Staff recommends adoption of the following motion: Move to approve a resolution approving the proposed settlement agreement between John L. and Rose A. Harrison, Dakota County and the City of Lakeville. Overview The County State Aid Highway (CSAH) 50 (Kenwood Trail) Reconstruction project requires partial fee acquisition of property owned by John L. and Rose A. Harrison, located at 20171 Icenic Trail. County and City staff, along with the Harrisons, have reached a proposed settlement agreement on the terms of the right-of-way acquisition. In summary, the Harrisons will convey Parcel 64, Dakota County Road Right-of-Way Map Number 469, to the County in exchange for Outlot E, Kenwood Trail Business Park from the City. The County and City also agree to pay Harrisons $30,000 and construct parking lot, sidewalk and retaining wall improvements to replace parking and land impacted by the CSAH 50 Project. Furthermore, the County and City agree to reimburse the Harrisons the cost of salvaging/reinstalling the existing monument sign, parking lot lighting and irrigation. Primary Issues to Consider • Right-of-way acquisition is shared by the County (55%) and City (45%) as established by a Joint Powers Agreement; the City’s estimated cost is $95,000. The City’s proposed funding source is the Municipal State Aid Fund. A 2/3 vote of the City Council is required to dispense with statutory requirement for Planning Commission review. Supporting Information • Settlement Agreement Financial Impact: $ Budgeted: Y☒ N☐ Source: Envision Lakeville Community Values: Diversified Economic Development Report Completed by: David L. Olson, Community & Economic Development Director and Zach Johnson, City Engineer CITY OF LAKEVILLE May 15, 2017 95,000 Municipal State Aid Fund RESOLUTION NO. ____ RESOLUTION APPROVING THE CONVEYANCE OF REAL PROPERTY AND DISPENSING WITH STATUTORY REQUIREMENTS FOR REVIEW BY PLANNING COMMISSION OF DISPOSAL OF PROPERTY WHEREAS, the City is proposing to convey certain property ("Property") legally described in and under the terms of the proposed settlement agreement attached as Exhibit "A", between John L. Harrison and Rose A. Harrison (“Harrisons”), Dakota County and the City of Lakeville ("Settlement Agreement") for the purpose of expanding County State Aid Highway (CSAH) 50 (Kenwood Trail) to a four-lane divided highway; WHEREAS, Minn. Stat. § 462.356, subd. 2 requires that the Planning Commission review the City's proposed acquisitions and dispositions of property, and; WHEREAS, Minn. Stat. § 462.356, subd. 2 provides for an exception from the Planning Commission review requirement upon 2/3 vote of the City Council dispensing with the requirement and finding that the acquisition or disposal of the property has no relationship to the comprehensive municipal plan. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville: 1. The City Council finds that the disposition of the Property under the Settlement Agreement has no relationship to the comprehensive municipal plan and approves the Settlement Agreement; 2. Review by the Planning Commission of the disposition of the Property is hereby dispensed with; and 3. The Mayor, City Administrator and City Clerk are authorized and directed to execute all documents, and take all appropriate measures to convey the Property under the terms of the Settlement Agreement. ADOPTED by the Lakeville City Council this 15th day of May 2017. ______________________________ Douglas P. Anderson, Mayor _________________________________ Charlene Friedges, City Clerk SETTLEMENT AGREEMENT Page 1 of 9 CASE TYPE: CONDEMNATION STATE OF MINNESOTA DISTRICT COURT COUNTY OF DAKOTA FIRST JUDICIAL DISTRICT THE COUNTY OF DAKOTA, (C.P. 50-19) PETITIONER, SETTLEMENT AGREEMENT v. REGARDING PARCEL 64 (469) District Court File No. 19HA-CV-17-574 U.S. Bank National Association, a United States of America national banking Association, et al. (John L. Harrison and Rose A. Harrison, Trustees of the John L. Harrison Living Trust) RESPONDENTS. WHEREAS, Dakota County and the City of Lakeville (collectively the “Partner Agencies”) are partnering on County Project (CP) 50-19 to expand County State Aid Highway (CSAH) 50 to a four-lane divided highway from CSAH 60 (185th Street) to CSAH 9 (Dodd Boulevard) in Lakeville; and WHEREAS, County of Dakota commenced the above action in eminent domain to acquire Parcel 64 (469) in fee simple from John L. Harrison and Rose A. Harrison, Trustees of their successors in trust under the John L. Harrison Living Trust, dated June 3, 1994, and any amendments thereto (the “Owner”); and WHEREAS, the Partner Agencies have entered in to a negotiated settlement with Owners for the acquisition of Parcel 64 and all damages and claims that could be asserted by Owner in the above referenced action; and SETTLEMENT AGREEMENT Page 2 of 9 NOW, THEREFORE, THE PARTIES HEREBY AGREE TO SETTLE THE ABOVE REFERENCED MATTER UPON THE FOLLOWING TERMS AND CONDITIONS: 1. The County and Owner will enter into the Stipulation for Dismissal of Parcel 64(469), Order and Partial Judgment (the “Stipulation”), attached as Attachment A. The County and Owner will sign the Stipulation at the closing of the real estate transactions described below and County may then file the Stipulation with the district court. 2. The Parties agree to a land exchange by which Petitioner Dakota County will acquire from Owner in fee simple Parcel 64 (469) identified in Dakota County Road Right- of-Way Map Number 469, recorded in the Office of the Dakota County Recorder as Document No. 3178853, for CP 50-19 and Owners will acquire from the City in fee simple Outlot E, Kenwood Trail Business Park to replace parking an land impacted by CP 50-19. 3. The Parties will close on the land exchange at a date and time mutually agreeable to them prior to May 18, 2017 by exchanging the following documents: (a) At the closing, City shall deliver: (i) an executed quit claim deed to Owner conveying Outlot E, Kenwood Trail Business Park (attached as Attachment B); (ii) an affidavit of seller (attached as Attachment C); (iii) a check payable to the Owner and Leland J. Frankman Law Offices in the amount of $30,000 (“Settlement Amount”); (iii) any other documentation reasonably necessary to accomplish the land exchange. (b) At the closing, Owner shall deliver: (i) an executed trustee’s deed to County conveying Parcel 64 (469) (attached as Attachment D); (ii) an executed affidavit of trustee and certificate of trust (attached as Attachment E); (iii) an affidavit of seller (attached as Attachment F); SETTLEMENT AGREEMENT Page 3 of 9 (iv) a right of entry for construction access for the construction of improvement identified in Paragraph 4 below (attached as Attachment G). (iii) any other documentation reasonably necessary to accomplish the land exchange. 4. The Parties further agree as follows: (a) A parking lot, sidewalk, and retaining wall will be constructed by the CP 50-19 contractor, at the Partner Agencies’ expense, as shown on Lakeville Dental Site Concept A, dated February 9, 2017 (attached as Attachment H). Owner will provide a right of entry for construction access for this work. The right of entry is for the purpose of constructing the above-stated improvements and restoring the subject property following construction, and shall not be used with the intent of storing Project equipment and materials. The CP 50-19 contractor will install sod on grass areas disturbed by construction. (b) Existing mailbox will be salvaged and relocated by the CP 50-19 contractor, at the Partner Agencies’ expense, to location agreed upon by Owners and approved by Lakeville Postmaster. (c) Existing boulders will be salvaged and stockpiled on-site by the CP 50- 19 contractor, at the Partner Agencies’ expense, to location agreed upon by Owners and the Partner Agencies. (d) Existing monument sign will be salvaged and relocated by Owners, at the Partner Agencies’ expense, provided the work is consistent with a contract entered into by Owners, and approved by the Partner Agencies prior to execution. Owners agree to obtain two estimates for the costs of relocating the monument sign to ensure competitive pricing. Sign will be reinstalled in a manner similar to the existing sign. Owner will pay for any desired betterments or improvement to the existing monument sign. City staff will recommend a variance to sign setback requirements provided the location meets traffic sight visibility requirements. Owner will submit an invoice for reimbursement of the costs to the City. City shall reimburse Owner upon the completion of the work in accordance with the approved contract. Owners understand that payment by City requires time processing of a voucher. (e) Existing parking lot lighting will be salvaged and relocated by Owners, at Partner Agencies’ expense. City will also reimburse the Owner for the cost and installation of up to two new light poles, of similar kind and quality as the existing parking lighting, for the new parking area. Owners agree to obtain two estimates for the costs related to the parking lot lighting to ensure competitive pricing and the SETTLEMENT AGREEMENT Page 4 of 9 contract must be the approved by the Partner Agencies prior to execution. Owner will submit an invoice for reimbursement of the costs to the City. City shall reimburse Owner upon the completion of the work in accordance with the approved contract. Owners understand that payment by City requires time for processing of a voucher. (f) Alterations for capping and relocating the existing irrigation system impacted by the permanent right of way acquisition and construction contemplated by this Agreement will be completed by Owners, at City’s expense, provided the work is consistent with a contract entered into by Owners, and approved by City prior to execution. Owners agree to obtain two estimates for the irrigation alteration costs. Owner will pay for any desired betterments or improvement to the existing irrigation system. Owner will submit an invoice for reimbursement of the costs to the City. City shall reimburse Owner upon the completion of the work in accordance with the approved contract. Owners understand that payment by City requires time for processing of a voucher. (g) County will reimburse Owner for its appraisal costs up to $5,000 upon receiving a copy of the Owner’s appraisal and invoice from a licensed certified general appraiser. (h) The Partner Agencies will pay the cost of recording of all deeds. (i) City and Owner warrant, with regard to the respective parcels to be conveyed, that any real estate taxes payable or deferred in the years prior to the year of closing and installments of special assessments have been paid and further warrant that the first half of real estate taxes payable in the year of closing shall be paid by the respective owners on or before May 15, 2017. 5. Partner Agencies cost sharing obligations associated with payments to be made in association with this Agreement are set forth in the First Amended and Restated Joint Powers Agreement For Engineering, Right of Way Acquisition and Construction concerning CP 50-19 dated March 6, 2017 and the 2030 Dakota County Transportation Plan. 6. In exchange for the above-described consideration, the sufficiency of which is hereby acknowledged, Owners, as well as their heirs, assigns, executors, and agents, hereby fully release and fully discharge the Partner Agencies as well as all of their commissioners, council members, employees, officers, agents, insurers, and assigns from any and all claims, SETTLEMENT AGREEMENT Page 5 of 9 demands, damages, actions, attorneys’ fees, losses, causes of action or suits of any kind or nature that could have been asserted in this eminent domain proceeding. 6. The Parties agree to use their best efforts and good faith in carrying out all the terms of this Agreement. The Parties further covenant and agree to execute any and all documents reasonably necessary to effectuate the provisions of this Agreement. 7. If a Party alleges that another Party is in default of this Agreement, that Party shall deliver a notice of default by personal service in accordance with Rule 4.03 of the Minnesota Rules of Civil Procedure with a copied mailed to the Party’s attorney and the other Party shall have fifteen (15) days to cure such default. 8. The language used in this Agreement is chosen jointly by the Parties to express their mutual intent and no rule of construction will be applied against any Party, including any rule of draftsmanship. The Parties and the parties expressly agree that any uncertainty or ambiguity existing in the Agreement shall not be interpreted against any of them. Except as expressly limited by this paragraph, all of the applicable rules of interpretation of contract shall govern the interpretation of the Agreement. The term “including” as used in this Agreement is used to list items by way of example and shall not be deemed to constitute a limitation of any term or provision contained herein. 9. The Parties understand and agree that none of the Parties or their attorneys have made any representations or warranties regarding the taxability or non-taxability of any of the consideration exchanged pursuant to this Agreement. 10. This Settlement Agreement represents the complete understanding of the Parties and shall be interpreted in accordance with the laws of the State of Minnesota SETTLEMENT AGREEMENT Page 6 of 9 without regard to its conflict of laws provisions. The Parties acknowledge and agree that any and all disputes arising from or related to this Agreement shall be brought only in Dakota County, Minnesota 11. This Agreement may not be modified, amended or terminated orally. No modification, amendment or termination, or any waiver of any of the provisions of this Agreement, shall be binding unless same is in writing and signed by the Party against whom such modification, amendment or waiver is sought to be enforced. 12. This Agreement may be executed in two or more counterparts, each of which will be deemed an original. A copy, facsimile copy, or electronic copy of this Agreement, including its signature pages, will be binding and deemed to be an original. 13. This agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors, representatives, and assigns. 14. The signatories below acknowledge on behalf of their respective entities that each signatory has the fully authority and power to execute this agreement, and that all consents and/or approvals necessary for each respective entity to enter into this agreement have been obtained or waived. Each of the parties hereto further acknowledges and agrees that it entered into this agreement of its own free will and not under any form of duress. SETTLEMENT AGREEMENT Page 7 of 9 AGREED AND ACCEPTED: ATTORNEYS FOR DAKOTA COUNTY JAMES C. BACKSTROM DAKOTA COUNTY ATTORNEY By: ______________________________ Thomas R. Donely; Reg. No. 349938 Assistant County Attorney Dakota County Government Center 1560 Highway 55 Hastings, MN 55033 651 438-4438 Date of Signature: SETTLEMENT AGREEMENT Page 8 of 9 AGREED AND ACCEPTED: CITY OF LAKEVILLE Douglas P. Anderson, Mayor Date of Signature: Charlene Friedges, City Clerk Date of Signature: SETTLEMENT AGREEMENT Page 9 of 9 AGREED AND ACCEPTED: OWNER: JOHN L. HARRISON AND ROSE A. HARRISON, TRUSTEES OF THE JOHN L. HARRISON LIVING TRUST By: ______________________________ John L. Harrison, Trustee Date of Signature: By: ______________________________ Rose A. Harrison, Trustee Date of Signature: LELAND J. FRANKMAN LAW OFFICES By: ______________________________ Harry A. Frankman Attorney at Law, Reg. No. ___________ 900 IDS Center 80 South 8th Street Minneapolis, Minnesota 55402 612-375-1600 Date of Signature: