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HomeMy WebLinkAboutItem 06.j Date: Item No. AMEND RESOLUTION NO. 17-75 AND RESOLUTION NO. 17-76 222ND STREET IMPROVEMENT PROJECT AND LAUNCH PARK FIRST ADDITION Proposed Action Staff recommends adoption of the following motion: Move to approve amending Resolution No. 17-75 (approving and adopting First Amendment to Development Contract, Assessments and Collateral Assignment of Development Contract) and Resolution No. 17-76 (approving and adopting a public improvement and special assessment agreement and assessments) relating to Launch Park First Addition and the 222nd Street Roadway and Utility Improvements (CP 17-07). Overview On June 19th, 2017, the Lakeville City Council awarded a contract for 222nd Street Roadway and Utility Improvements (CP 17-07) and adopted resolutions (No’s. 17-75 and 17-76) in support of the property owner’s (Hat Trick Investments, LLC) and Developer’s (Lakeville 222nd 2017, LLC) request to assess all the CP 17-07 costs against their respective properties. CP 17-07 is complete and the final assessment costs are calculated. The amended resolutions reflect the actual final assessment amounts and minor modifications to the assessments terms for consistency to similar assessments imposed on property owners. Primary Issues to Consider (See attached) Financial Impact: $978,567.48 Budgeted: Y☒ N☐ Source: Bonds & Special Assmts. Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Diversified Economic Development Report Completed by: Zach Johnson, City Engineer November 20, 2017 Primary Issues • Actual assessment amounts are less than previously adopted assessment amounts because final construction costs were lower than the engineer’s estimate as well as certain costs were paid directly by the Developer. Assessment amounts to all parcels are reduced proportionally. The original and final assessment amounts are as follows: Property Original Final Lot 1, Block 1, Launch Park First Addition $361,826.62 $252,470.41 Outlot A, Launch Park First Addition $339,387.76 $236,813.33 Exception Parcel $701,214.38 $489,283.74 Totals $1,402,428.76 $978,567.48 CITY OF LAKEVILLE RESOLUTION NO. 17- RESOLUTION AMENDING RESOLUTION NO. 17-75 APPROVING AND ADOPTING FIRST AMENDMENT TO DEVELOPMENT CONTRACT, ASSESSMENTS AND COLLATERAL ASSIGNMENT OF DEVELOPMENT CONTRACT WHEREAS, on June 19, 2017, the City Council approved Resolution No. 17-75 approving a First Amendment to Development Contract, Assessments and a Collateral Assignment of Development Contract; and WHEREAS, the City desires to correct certain errors in Resolution 17-75 and finalize the assessment amount. NOW THEREFORE, BE IT RESOLVED by the City Council of Lakeville, Minnesota that paragraphs 1-6 of Resolution No. 17-75 are amended to read as follows: 1. The Amendment to Development Contract is hereby accepted and approved. 2. A special assessment in the principal amount of $489,283.74 is hereby imposed against the Property, which shall be allocated following recording of the plat for Launch Park First Addition, Dakota County, State of Minnesota, as follows: Lot 1, Block 1 = $252,470.41 Outlot A = $236,813.33 3. Such assessment shall be payable in equal annual installments extending over a period of 10 years, the first of the installments to be payable with 2018 property taxes, and shall bear interest at the rate of 5% per annum from June 19, 2017, the date of the adoption of Resolution No. 17-75. To the first installment shall be added interest on the entire assessment from June 19, 2017 until December 31, 2018. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 4. The Owner of the Property may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City, except that no interest shall be charged if the entire assessment is paid within 60 days from the adoption of Resolution No. 17-75; and it may, at any time thereafter, pay to the City Treasurer the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. 5. The City Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County. Such assessments shall be collected and paid over in the same manner as other municipal taxes. 6. A collateral assignment of the Development Contract in favor of National Bank of Commerce is hereby approved and the Mayor and City Clerk are authorized to execute the appropriate documentation for such assignment. ADOPTED by the Lakeville City Council this 20th day of November 2017 CITY OF LAKEVILLE ______________________________ Douglas P. Anderson, Mayor ATTEST: _____________________________ Charlene Friedges, City Clerk CITY OF LAKEVILLE RESOLUTION NO. 17- RESOLUTION AMENDING RESOLUTION NO. 17-76 APPROVING AND ADOPTING A PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT AND ASSESSMENTS WHEREAS, on June 19, 2017, the City Council adopted Resolution No. 17-76 approving and adopting a Public Improvement and Special Assessment Agreement and Assessments for the property legally described in Exhibit A; and WHEREAS, the City Council desires to amend certain errors in Resolution No. 17-76 and finalize the assessment amount. NOW THEREFORE, BE IT RESOLVED by the City Council of Lakeville, Minnesota, that Paragraphs 1-5 of Resolution No. 17-76 are amended to read as follows: 1. The Assessment Agreement is hereby accepted and approved. 2. A special assessment in the principal amount of $489,283.74 is hereby imposed against the Property. 3. Such assessment shall be payable in equal annual installments extending over a period of 10 years, the first of the installments to be payable with 2018 property taxes, and shall bear interest at the rate of 5% per annum from June 19, 2017, the date of the adoption of Resolution No. 17-76. To the first installment shall be added interest on the entire assessment from June 19, 2017 until December 31, 2018. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 4. The Owner of the Property may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City, except that no interest shall be charged if the entire assessment is paid within 60 days from the adoption of Resolution No. 17-76; and it may, at any time thereafter, pay to the City Treasurer the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. 5. The City Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County. Such assessments shall be collected and paid over in the same manner as other municipal taxes. ADOPTED by the Lakeville City Council this 20th day of November 2017 CITY OF LAKEVILLE ______________________________ Douglas P. Anderson, Mayor ATTEST: _____________________________ Charlene Friedges, City Clerk CITY OF LAKEVILLE DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 17-75 RESOLUTION APPROVING AND ADOPTING FIRST AMENDMENT TO DEVELOPMENT CONTRACT, ASSESSMENTS, AND COLLATERAL ASSIGNMENT OF DEVELOPMENT CONTRACT WHEREAS, Hat Trick Investments, LLC, a Minnesota limited liability company, Owner") is the fee owner of property located in the City of Lakeville, Dakota County, Minnesota, legally described in Exhibit A, attached hereto and incorporated herein ("Property") to be platted as Launch Park First Addition and developed pursuant to a Development Contract between the City and Lakeville 222nd 2017, LLC, a Minnesota limited liability company, ("Developer") dated May 1512017; WHEREAS, Owner and Developer have requested assessment of a portion of the costs of City Improvement Project 17-07, together with associated legal expenses, engineering administration and staff time, financing (bond issuance), construction observation, surveying, record drawing preparation, permits and publications against the Property; WHEREAS, the City has received the attached signed First Amendment to Development Contract, attached hereto as Exhibit B, ("Amendment to Development Contract") that includes assessment of a portion of the costs for City Improvement Project 17-07 and waiving all applicable assessment procedural requirements and requesting to be assessment for the public improvement costs in the amount itemized therein against the Property; WHEREAS, the Developer has requested that the City consent to a collateral assignment of the development contract as required by Developer's lender, to assist developer in obtaining a loan for the construction of the project. NOW THEREFORE, BE IT RESOLVED by the City Council of Lakeville, Minnesota: 1. The Amendment to Development Contract is hereby accepted and approved. 2. A special assessment in the principal amounts of $701,214.38 is hereby imposed against the Property, which shall be allocated following recording of the plat for Launch Park First Addition as follows: Lot 1, Block 1 = $361,826.62 Outlot A = $3395387.76 3. Such assessment shall be payable in equal annual installments extending over a period of 10 years, the first of the installments to be payable with the first installment of the 2018 193035v2 property taxes, and shall bear interest at the rate of 5% per annum from the date of the adoption of this assessment resolution. To the first installment shall be added interest on the entire assessment from the date of this resolution until December 31, 2017. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 4. The owner of the Property may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the city , except that no interest shall be charged in the entire assessment is paid within 60 days from the adoption of this resolution; and he may, at any time thereafter, pay to the city treasurer the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. 5. The City Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County. Such assessments shall be collected and paid over in the same manner as other municipal taxes. 6. A collateral assignment of the Development Contract in favor of National Bank of Commerce is hereby approved and the Mayor and City Clerk are authorized to execute the appropriate documentation for such assignment. ADOPTED by the Lakeville City Council the 19'h day of June 2017 CITY OF LAKEVILLE BY: Douglas P Berson, Mayor ATTEST: Charlene Friedges, City 193035v2 2 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY All that part of the Northwest Quarter of Section 3, Township 113, Range 20, lying southerly of a line drawn northeasterly from the west line of said Northwest Quarter, distant 988.42 feet south of the northwest corner of said Northwest Quarter to a point on the east line of said Northwest Quarter distant 818.14 feet south of the northeast corner, and which lies northerly of the south 1000 feet thereof. 193035v2 FIRST AMENDMENT TO DEVELOPMENT CONTRACT LA UNCH PARK FIRST ADDITION THIS FIRST AMENDMENT TO DEVELOPMENT CONTRACT ("Amendment") is made this 14hday of June, 2017, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation ("City") and LAKEVILLE 222ND 2017, LLC, a Minnesota limited liability company (the Developer"). 1. EFFECT OF DEVELOPMENT CONTRACT. The Development Contract dated 2017, and filed for record with the Dakota County Recorder on , as Document No. for the plat of Launch Park First Addition ("Development Contract") shall remain in full force and effect except as specifically amended herein. 2. AMENDMENT TO PARAGRAPH 27(B). Paragraph 27(B) of the Development Contract is amended to read as follows: B. Before the City signs the final plat, the Developer shall furnish to the City an appropriately executed public temporary turnaround easement, in recordable form, and shall also provide a cash fee of $2,000.00 for future removal of the temporary cul-de-sac. 1 192794v4 The Developer will be required to construct and extend 222nd Street to the east plat boundary of Outlot A, Launch Park First Addition, at the time Outlot A is platted into lots and blocks. 3. AMENDMENT TO PARAGRAPH 27(E). Paragraph 27(E) of the Development Contract is amended to read as follows: E. At its April 17, 2017 meeting, the City Council approved a resolution accepting a petition from the Developer requesting the City construct the required public improvements associated with Launch Park First Addition and be assessed for the entire cost of the project. At its same meeting, the Council approved a resolution approving a feasibility report, ordering improvements and declaring intent to bond for the 222nd Street and Utility Improvement Project, City Project 17-07. The project would include the construction of 222nd Street, watermain, sanitary sewer, storm sewer, and turn lane improvements along Cedar Avenue. The City intends to receive bids and award a contract for construction in June, 2017. The Developer shall submit the security required by the terms of Section 28 Public Construction Costs) with the final plat guaranteeing completion of the public improvements and costs for construction of public improvements, surveying, design, inspection, as-builts, legal fees, engineering administration. The property to be platted as Lot 1, Block 1 and Outlot A, Launch Park First Addition, is hereby subjected to the following special assessments benefitting the properties for a portion of the costs of City Improvement Project 17-07 (the "Improvements"), which include associated legal expenses, engineering administration and staff time, financing (bond issuance), construction observation, surveying, record drawing preparation, permits and publication fees. The City will assess a portion of the total cost of the Improvements to Lot 1, Block 1 and Outlot A, Launch Park First Addition based on the Iotloutlot frontage of such 2 1927944 properties with 222nd Street right-of-way in the amount of $701,214.38, to be split between and assessed against such properties as follows: $361,826.62 to Lot 1, Block 1 and 339,387-76 to Outlot A. The special assessment shall be deemed adopted on the date this Agreement has been signed by all parties. The assessment shall be spread without deferment over a ten (10) year period in equal annual installments, together with interest of five percent (5%) per year on the unpaid balance. The first installment shall be payable with taxes paid in 2018. Developer, its successors and assigns, waive any and all procedural and substantive objections to the Public Improvements and special assessment, including but not limited to hearing requirements and any claim that the assessment exceeds the benefit to the Subject Property. Developer waives any appeal rights otherwise available pursuant to Minn. Stat. § 429.081. Developer shall be responsible for payment of all costs of the Improvements, which include associated legal expenses, engineering administration and staff time, financing bond issuance), construction observation, surveying, record drawing preparation, permits and publication fees that exceed the original amount assessed to all properties assessed for the costs of the Improvements, located both within and outside the Launch Park First Addition plat. Developer shall reimburse the City for such excess costs within 30 days of the receipt of an invoice for the costs by the City. In the event that the total costs of the Improvements are less than the amounts assessed by the City for the Improvements to all parcels within and outside the Launch Park First Addition plat (the "Deficiency"), the respective assessments to Lot 1 Block 1 and Outlot A will each be reduced proportionately by multiplying the amount of the Deficiency by a fraction, the numerator of which is the assessment amount for the applicable parcel set forth above, and the denominator of which is the total assessment amount for all parcels assessed for the Improvements. 3 1927944 4. AMENDMENT TO PARAGRAPH 28. Paragraph 28 of the Development Contract is amended to read as follows: 28. SUMMARY OF SECURITY REQUIREMENTS. To guarantee compliance with the terms of this Contract, payment of real estate taxes including interest and penalties, payment of special assessments, payment of the costs of all public improvements, and construction of all public improvements, the Developer shall furnish the City with a cash escrow, letter of credit or alternate security, in the form attached hereto, from a bank ("security") for $475,579.00. If an alternate security is furnished, the Developer shall also furnish a letter of credit for twenty-five percent (25%) of the alternate security amount to cover any contract increases. The amount of the security was calculated as follows: CONSTRUCTION COSTS: A. Grading, Erosion Control, and Restoration $291,000.00 CONSTRUCTION SUB -TOTAL $2919000.00 OTHER COSTS: A. Developer's Design (3.0%) $ 8,730.00 B. Developer's Construction Survey (2.5%) 7,275.00 C. City Legal Expenses (Est. 0.5%) 1,455.00 D. City Construction Observation (Est. 5.0%) 14,550.00 E. Developer's Record Drawings (0.5%) 1,455.00 F. Landscaping 138,414.00 G. Stop Signs and Stop Bars 1,500.00 H. Lot Corners/Iron Monuments 200.00 1. Stormwater Basin Revision 10,000.00 OTHER COSTS SUB -TOTAL $183,579.00 4 1927944 TOTAL SECURITIES: $475,579.00 This breakdown is for historical reference; it is not a restriction on the use of the security. The bank shall be subject to the approval of the City Administrator. The City may draw down the applicable security, on five (5) business days written notice to the Developer, for any violation of the terms of this Contract pertaining to the applicable security or without notice if the applicable security is allowed to lapse prior to the end of the required term. If the required public improvements are not completed at least thirty (30) days prior to the expiration of the applicable security, the City may also draw it down without notice. If the applicable security is drawn down, the proceeds shall be used to cure the default. Upon receipt of proof satisfactory to the City that work has been completed and financial obligations to the City have been satisfied, with City approval the applicable security may be reduced from time to time by ninety percent (90%) of the financial obligations that have been satisfied. Ten percent (10%) of the amounts certified by the Developer's engineer shall be retained from the applicable security as security until all work has been completed, all financial obligations to the City satisfied, the required "as constructed" plans have been received by the City, a warranty security is provided, and the improvements are accepted by the City Council. The City's standard specifications for utility and street construction outline procedures for security reductions. Notwithstanding the foregoing, if the Developer enters into a contract to construct the site improvements, the City may draw on the security for any violation of this Contract and will not be restricted to drawings on the applicable security. 5. AMENDMENT TO PARAGRAPH 29. Paragraph 29 of the Development Contract is amended to read as follows: 29. SUMMARY OF CASH REQUIREMENTS. The following is a summary of the cash requirements under this Contract which must be furnished to the City prior to the City Council signing the final plat: A. Sanitary Sewer Availability Charge to be paid with building permit 5 192794v4 B. Park Dedication Fee $ 107,569.00 C. Trunk Storm Sewer Area Charge 257,004.00 D. Traffic Control Signs 900.00 E. Streetlight Operating Fee 1,711.00 F. Future Upgrade of Cedar Avenue 106,522.00 G. Environmental Resources Fee 2,948.00 H. Future Removal of Temporary Cul-de-sac 2,000.00 I. City Base Map Updating 180.00 J. City Engineering Administration 8,730.00 3% for letters of credit or 3.25% for alternate disbursement) TOTAL CASH REQUIREMENTS $ 487,554.04 6. CONDITION OF AMENDMENT. Although this Amendment shall not encumber or burden the property located in the City of Lakeville, County of Dakota and legally described in Exhibit A, attached hereto and incorporated herein, ("Hat Trick Parcel"), a condition of this Amendment is execution by the owner of the Hat Trick Parcel of a Public Improvement and Special Assessment Agreement in the amount of $701,214.38 for assessment of its share of the total costs of the Improvements against the Hat Trick Parcel. IN WITNESS WHEREOF, the parties have caused this Amendment to be executed this day of J2017. The remainder of this page has been intentionally left blank. Signature pages follow.] 6 192794v4 CITY OF LAKEVILLE 54r"Wm7 M mderson, SEAL) AND Charlene Friedges, City erk STATE OF MINNESOTA ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this Iel day of J Ufnr.- , 2017, by Douglas P. Anderson and by Charlene Friedges, 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 P B C l 1/JYiJJJ_i_-.r_/l_ JJ_ i,I_'r1!Jl 7 1927944 DEVELOPER: LAKEVILLE 222N° kOI7 LLC BY: Its: Q Pi STATE OF MINNESOTA } ss. COUNTY OF DAKOTA } The foregoing instrument was acknowledged before me this 3 h day of 75u nt , 2017, by D Civ'\ the ct,-\" -c 2D&(NC&Q&r of Lakeville 222nd 2017, LLC, a Minnesota limited liability company. a.aivA1: ON DRAFTED BY: CAMPBELL, KNUTSON Professional Association Grand Oak Office Center 1 860 Blue Gentian Road, Suite 290 Eagan, MN 55121 Telephone: 651-452-5000 AM Plcj h 8 192794v4 EXHIBIT A LEGAL DESCRIPTION OF HAT TRICK PARCEL All that part of the Northwest Quarter of Section 3, Township 113, Range 20, lying northerly of a line drawn northeasterly from the west line of said Northwest Quarter, distant 988.42 feet south of the northwest corner of said Northwest Quarter to a point on the east line of said Northwest Quarter distant 818.14 feet south of the northeast corner. 1927944 MORTGAGEE CONSENT TO DEVELOPMENT CONTRACT ALLIANCE BANK, a Minnesota corporation, which holds a mortgage on the subject property, the development of which is governed by the Development Contract referenced in the foregoing Amendment, agrees that the Development Contract, as amended by the Amendment, shall remain in full force and effect even if it forecloses on its mortgage. Dated this 13 day of June, 2017. Its: Vice President STATE OF MINNESOTA } SS. COUNTY OF RAMSEY } The foregoing instrument was acknowledged before me this 13 day of June, 2017, by Justin Betzold the Vice President of Alliance Bank, a Minnesota corporation, on behalf of said corporation. 11.1. NOTARY PUBLt DRAFTED BY: CAMPBELL KNUTSON Professional Association Grand Oak Office Center 1 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 651-452-5000 AM Plcj h 10 1927944 1CKtAT:1E= Public-Minnesota FEE OWNER CONSENT TO DEVELOPMENT CONTRACT HAT TRICK INVESTMENTS, LLC, a Minnesota limited liability company, fee owner of all or part of the subject property, the development of which is governed by the foregoing Development Contract, affirms and consents to the provisions thereof and agrees to be bound by the provisions as the same may apply to that portion of the subject property owned by them, including the assessments under Paragraph 27(E) and hereby waives any appeal rights for the assessments otherwise available pursuant to Minn. Stat. § 429.081. Dated this a day of u 72017. HAT TRICK INVESTMENTS, LLC BY: STATE OF MINNESOTA ) ss. COUNTY OF } The foregoing instrument was acknowledged before me this 'day of ':)Ur\- C , 2017, by k c -r ,the d _E s ; n , of Hat Trick Investments, LLC, a Minnesota lim' ed liability company, on its behalf. Notary Pub is DRAFTED BY: CAMPBELL KNUTSON Professional Association Grand Oak Office Center 1 860 Blue Gentian Road, #290 Eagan, Minnesota 55121 651)452-5000 Il 1927944 CITY OF LAKEVILLE DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 17-76 RESOLUTION APPROVING AND ADOPTING A PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT AND ASSESSMENTS WHEREAS, Hat Trick Investments, LLC, a Minnesota limited liability company, Owner") is the fee owner of property located in the City of Lakeville, Dakota County, Minnesota, legally described in Exhibit A, attached hereto and incorporated herein ("Property"); WHEREAS, Owner has requested assessment of a portion of the costs associated with the City Improvement Project 17-07, together with associated legal expenses, engineering administration and staff time, financing (bond issuance), construction observation, surveying, record drawing preparation, permits and publications against the Property; WHEREAS, the City has received the attached signed Public Improvement and Special Assessment Agreement, attached hereto as Exhibit B, ("Assessment Agreement") that includes assessment of a portion of the costs for City Improvement Project 17-07 and waiving all applicable assessment procedural requirements and requesting to be assessment for the public improvement costs in the amount itemized therein against the Property; NOW THEREFORE, BE IT RESOLVED by the City Council of Lakeville, Minnesota: 1. The Assessment Agreement is hereby accepted and approved. 2. A special assessment in the principal amount of $701,214.38 is hereby imposed against the Property. 2. Such assessment shall be payable in equal annual installments extending over a period of 10 years, the first of the installments to be payable with the first installment of the 2018 property taxes, and shall bear interest at the rate of 5% per annum from the date of the adoption of this assessment resolution. To the first installment shall be added interest on the entire assessment from the date of this resolution until December 31, 2017. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 3. The owner of the Property may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the city , except that no interest shall be charged in the entire assessment is paid within 60 days from the adoption of this resolution; and he may, at any time thereafter, pay to the city treasurer the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. 4. The City Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County. Such assessments shall be collected and paid over in the same manner as other municipal taxes. ADOPTED by the Lakeville City Council this 19th day of June 2017 CITY OF LAKEVILLE ATTEST: r Charlene Friedges, City erk EXHIBIT A Legal Description of Property All that part of the Northwest Quarter of Section 3, Township 113, Range 20, lying northerly of a line drawn northeasterly from the west line of said Northwest Quarter, distant 988.42 feet south of the northwest corner of said Northwest Quarter to a point on the east line of said Northwest Quarter distant 818.14 feet south of the northeast corner. PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT THIS PUBLIC IMPROVEMENT D SPECIAL ASSESSMENT AGREEMENT Agreement") is made this A3iday ofIMPROVEMENT vv t , 2017, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation ("City") and HAT TRICK INVESTMENTS, LLC, a Minnesota limited liability company, ("Owner"). RECITALS A. Owner is the fee owner of property located in Lakeville, Dakota County Minnesota, legally described on Exhibit A attached hereto and incorporated herein (the Property"); B. The Owner has requested that the Property be assessed for $701,214.38 as Owner's share of the costs for City Improvement Project 17-07 (the "Improvements"), which include associated legal expenses, engineering administration and staff time, financing (bond issuance), construction observation, surveying, record drawing preparation, permits and publication fees. NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. PUBLIC IMPROVEMENTS AND FEE WAIVER. The City shall construct the Improvements that specially benefit the Property. 2. SPECIAL ASSESSMENT. The City will assess the Property Seven Hundred One Thousand Two Hundred Fourteen and 38/100ths Dollars ($701,214.38) for Owner's share of the total costs of the Improvements. The special assessment shall be deemed adopted on the date this Agreement has been signed by all parties. The assessment shall be spread without deferment over a ten (10) year period in equal annual installments, together with interest of five percent (5%) per year on the unpaid balance. The first installment shall be payable with taxes paid in 2018. In the event that the total costs of the Improvements are less than the amounts assessed by the City for the Improvements to all parcels within and outside the Launch Park First Addition plat (the Deficiency"), the assessment to the Property will be reduced proportionately by multiplying the amount of the Deficiency by a fraction, the numerator of which is the assessment amount for the Property set forth above, and the denominator of which is the total assessment amount for all parcels assessed for the Improvements. 1 1928391 3. WAIVER. Owner, its successors and assigns, waives any and all procedural and substantive objections to the Improvements and special assessment, including but not limited to hearing requirements and any claim that the assessment exceeds the benefit to the Property. Owner waives any appeal rights otherwise available pursuant to Minn. Stat. § 429.081. 4. BINDING EFFECT; RECORDING. This Agreement shall be binding upon Owner and Owner's successors and assigns in title to the Property. This Agreement shall run with the land and may be recorded against the title to the Property. CITY OF LAKEVILLE Im Dougla X Anderson, Mayor SEAL) AND Charlene Friedges, City C STATE OF MINNESOTA ) ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of U n -t-, 2017, by Douglas P. Anderson and by Charlene Friedges, 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. 2) Notary Public-"' F(WPENNY D. BREVIG Notary Public • Minnesota My Commission Expires Jan. 31. 2070 2 1928391 OWNER: HAT TRICK INVESTMENTS, LLC BY: I STATE OF MINNESOTA ) ss. COUNTY OF n ) The foregoing instrument was acknowledged before me this day ofUnt , 20175 the \ ; -e P-e y-1 , of Hat Trick Investments, LLC, a Minnesota imited liability company, on its behalf. Notary Pu lic KATHRYN LEE DITMARSDN NOTARY PUBLIC • MINNESOTA My Commission Expires 01 /3112021 THIS INSTRUMENT WAS DRAFTED BY: Campbell Knutson Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 AMP/cj h 3 192839vl EXHIBIT A LEGAL DESCRIPTION OF PROPERTY All that part of the Northwest Quarter of Section 3, Township 113, Range 20, lying northerly of a line drawn northeasterly from the west line of said Northwest Quarter, distant 988.42 feet south of the northwest corner of said Northwest Quarter to a point on the east line of said Northwest Quarter distant 818.14 feet south of the northeast corner. 4 192839v1 MORTGAGEE CONSENT TO PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT ALLIANCE BANK, a Minnesota corporation, which holds a mortgage on the subject property, the development of which is governed by the foregoing Public Improvement and Special Assessment Agreement, agrees that the Public Improvement and Special Assessment Agreement shall remain in full force and effect even if it forecloses on its mortgage. Dated this 13 day of June, 2017. ALLIAN Mr STATE OF MINNESOTA } ss. COUNTY OF RAMSEY } Vice President The foregoing instrument was acknowledged before me this (3 day of June, 2017, by Justin Betzold the Vice President of Alliance Bank, a Minnesota corporation, on behalf of said corporation. I NOTARY THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNursoN Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, MN 55121 Telephone: 651-452-5000 AMP/cjh 5 1928395 KATIE LYNN RODDY Notary Public -Minnesota My Commhslm Eom Jan 31, 2020V%MV1WWVVVM VVVWV_V1W oyl