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HomeMy WebLinkAboutItem 06.kDate: September 6, 2011 Item No. ENCROACHMENT AGREEMENT WITH MALT -O -MEAL COMPANY Proposed Action Staff recommends adoption of the following motion: Move to adopt the attached Encroachment Agreement with Malt -O -Meal Company. Passage of this motion will result in Malt-O -Meal being allowed to install private storm sewer improvements with a City drainage utility easement. Overview Malt -O -Meal is proposing to expand the existing parking lot at 20802 Kensington Boulevard in the Fairfield Business Campus. In conjunction with the parking lot expansion, Malt -O -Meal is also installing private storm sewer pipe and storm water ponding areas on their property. A small section of the new private storm sewer pipe is proposed to encroach into an existing City drainage and utility easement on the property. Because these proposed storm sewer and ponding improvements only serve the Malt -O -Meal property they are considered to be private. As a result, an Encroachment Agreement is required to allow these private improvements to be located in a City drainage and utility easement. The City Attorney has drafted the attached Encroachment Agreement. The agreement provides that the City to suspend or terminate or suspend the agreement in the case of an emergency or if City can no longer utilize the easement with Malt -O- Meal's improvements in the easement. Staff recommends approval of the Encroachment Agreement with Malt -O -Meal. Primary Issues to Consider • Will the City still be able to utilize the existing easement for the intended purpose? The City will still have the right to service and maintain the existing utilities in the area covered by the area included in the Encroachment Agreement. Supporting Information • Copy of Proposed Encroachment Agreement David L. Olson Community and Economic Development Director Financial Impact: $ None Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): (reserved for recording information) ENCROACHMENT AGREEMENT AGREEMENT made this day of , 2011, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation ( "City "), and MALT -O -MEAL COMPANY, A Minnesota corporation, ( "Owner "). 1. BACKGROUND. Owner is the holder of an easement for private drainage and utility purposes over certain real property located in the City of Lakeville, County of Dakota and State of Minnesota, legally described in Exhibit A attached hereto ( "subject property "). The City owns an easement for drainage and utility purposes over the subject property. The Owner seeks permission from the City to install private utilities on the subject property which will encroach into the City's easement areas as depicted on the survey sketch attached hereto as Exhibit B. 2. ENCROACHMENT AUTHORIZATION. The City hereby approves the encroachment in its easement areas on the subject property for the installation of private utilities by Owner. 3. HOLD HARMLESS AND INDEMNITY. In consideration of being allowed to encroach in the City's easement areas, Owner, its successors and assigns, hereby agrees to indemnify and hold the City harmless from any damage caused to the subject property, including 159256v3 1 the private utilities on the subject property, caused in whole or in part by the encroachment into the City's easement areas. 4. SUSPENSION AND TERMINATION OF AGREEMENT. The City may terminate this Agreement at any time by giving the then owner of the easement over the Subject Property ninety (90) days advance written notice, provided however, City shall not act unreasonably in its decision to terminate this Agreement and shall not terminate this Agreement unless the City abandons its easement in the subject property or cannot otherwise utilize such easement area with Owner's utilities located in such easement. If the City terminates this Agreement, the City shall assist Owner in securing an alternate location for Owner's utilities that would otherwise be located in the City's easement areas, and Owner shall remove the private utilities on or before the effective date of the termination of this Agreement. The City may suspend this Agreement in the case of an emergency. Notice of a suspension of this Agreement will be provided to the best of the City's ability based on the nature of the emergency. If Owner is required to remove the private utilities during a suspension of this Agreement, removal and re- installation of the utilities will be at Owner's expense. If the City suspends this Agreement or terminates this Agreement, Owner shall not be found or determined to be in violation of any requirements or conditions imposed by the City with respect to the drainage system to which Owner's utilities in the City's easement areas relate during the period of time in which Owner is revising its drainage system, provided the Owner's drainage system is compliant with all federal, state and local rules and regulations related to drainage within a reasonable time following the suspension or termination. If the Owner fails to remove the private utilities for either a suspension (if utility removal is necessary) or termination of this Agreement, the City may remove the private utilities and charge the cost of removal back to the Owner for reimbursement. 159256v3 2 5. RECORDING. This Agreement shall run with the land and shall be recorded against the title to the subject property. (SEAL) STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 2011, by Mark Bellows and by Charlene Fridges, 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. STATE OF MINNESOTA ) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2011, by , the , of Malt -O -Meal Company, a Minnesota corporation, on behalf of said corporation. 159256v3 3 CITY OF LAKEVILLE By: Mark Bellows, Mayor By: Charlene Friedges, City Clerk MALT -O- MEAL COMPANY By: Its: Notary Public Notary Public DRAFTED BY: CAMPBELL KNUTSON Professional Association 1380 Corporate Center Curve, Suite #317 Eagan, Minnesota 55121 Telephone: 651 -452 -5000 AMP /cjh 159256v3 4 EXHIBIT "A" Legal Description of Subject Property: The South 35 feet of the North 100 feet of the West 320 feet of Outlot A, FAIRFIELD BUSINESS CAMPUS, according to the recorded plat thereof, Dakota County, Minnesota. And The East 35 feet of the West 320 feet of the North 100 feet of Outlot A, FAIRFIELD BUSINESS CAMPUS, according to the recorded plat thereof, Dakota County, Minnesota. And The South 35 feet of the North 100 feet of the east 700.01 feet of Lot 2, Block 1, FAIRFIELD BUSINESS CAMPUS, according to the recorded plat thereof, Dakota County, Minnesota. 159256v3 5 Attach Survey Sketch 159256v3 EXHIBIT "B" 6