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HomeMy WebLinkAboutResolution 09-089 Dated 6/15/2009 MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT JUNE 15, 2009 5 I JANE KANSIER, BUILDING AND TRANSPORTATION SERVICES DIRECTOR CONSIDER APPROVAL OF A RESOLUTION APPROVING AN AGREEMENT TO ALLOW THE TEMPORARY STORAGE OF A STRUCTURE ON THE PROPERTY AT 16037 TAHINKA PLACE NW Introduction The purpose of this agenda report is to consider a resolution approving an agreement with Gerald and Theresa Schrank to allow the temporary storage of a vacant and unoccupied structure on the property located at 16037 Tahinka Place NW. If the property owner fails to remove the structure within 90 days of the agreement (September 15, 2009), the City will do the necessary work and use the owner's letter of credit to pay the costs. History Gerald and Theresa Schrank currently own two adjacent lots in the Bluffs of Northwood Meadows. The original house, built in the 1970's, currently stands at 16046 Tahinka Place NW. The Schrank's sold this lot to a builder, and are working on an arrangement to move the existing house to a permanent location. In the interim, the Schrank's would like to move and temporarily store the vacant structure to the lot next door, at 16037 Tahinka Place NW. They own this lot as well. Just as a matter of interest, the house discussed in this report is the same house referenced in the update on the agenda report dealing with the sale of the City's vacant lot to Habitat for Humanity. Current Circumstances Normally, we require a house to be demolished or moved to a permanent location immediately. However, the staff believes 90 days is a reasonable time to make arrangements to move the house to a more permanent site. The Schranks have submitted a letter of credit for $6,500 to cover the cost of demolishing the structure. The attached agreement outlines the conditions of the temporary storage. The structure and lot must be maintained in a safe condition and in a way that it is not an eyesore in the neighborhood. If the owners fail to move or demolish the house by the deadline, the City has the right to enter the property and demolish the structure. The City Attorney has reviewed and approved the attached agreement. www.cityofpriorlake.com C:\DOCUME-1 \mjg\LOCALS-1 \Tem~fUb~&ilf6M~~n6alRe'p8.l.a6t4 7.4245 ISSUES: In the past year, the City has dealt with several complaints about vacant structures. It is not our intent to allow creation of more of these complaints. In this case, there are few established neighbors, and the lot next door will be undergoing construction. The relatively short timeline ensures removal of the structure before winter and before the new house is occupied. The agreement also provides a letter of credit which will allow the City to demolish the structure if necessary and at the owners' expense. FINANCIAL IMPACT: The letter of credit ensures any costs to the City will be recovered, ALTERNATIVES: 1. Adopt the attached resolution approving the agreement to allow the temporary storage of a vacant and unoccupied structure on the property located at 16037 Tahinka Place NW. 2. Other action as directed by the Council. RECOMMENDED A motion and second adopting a resolution approving the agreement allow the MOTION: temporary storage of a vacant and unoccupied structure on the property located at 16037 Tahinka Place NW. Reviewed tJ Frank Boyles, City M C:\DOCUME-1\mjg\LOCALS-1\Temp\iScrub\2159 165th Agenda Report.doc 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 09-089 A RESOLUTION APPROVING AN AGREEMENT TO ALLOW THE TEMPORARY STORAGE OF A STRUCTURE ON THE PROPERTY AT 16037 TAHINKA PLACE NW Motion By: Erickson Second By: Hedberg WHEREAS, The Owner is the fee owner of the following property described in Scott County, Minnesota, legally described as follows, to-wit: Lot 2, Block 2, Bluffs of Northwood Meadows, and having a street address of 16037 Tahinka Place NW (the "Property"). and WHEREAS, The Property is currently vacant; and WHEREAS, The Owner desires to move an existing house ("Structure") located at 16046 Tahinka Place NW and temporarily store the Structure on the Property; and WHEREAS, The City is willing to permit the temporary storage of the Structure on the Property by the Owner, subject to the following terms and conditions of this Agreement. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City Council hereby authorizes the Mayor and City Manager to enter into an agreement with Gerald and Theresa Schrank to allow the temporary storage of a vacant and unoccupied structure on the property located at 16037 Tahinka Place NW. 3. In the event the property owner fails to remove or demolish the structure by September 15, 2009, the City may demolish the structure in accordance with the agreement. PASSED AND ADOPTED THIS 15th DAY OF JUNE, 2009. Hauaen X Haugen Erickson X Erickson Hedbera X Hedbera LeMair X LeMair Millar X Millar YES NO Frank 80 www.cityofRriorlake.com ,_ M'\('()III\J('II \RI=!=:()I IIT"?nnO\nO_nRO !=:tnr.. !=:trll"tllr.. 1 Rn~n T"hlnk" n()(' Phone 952.447.9800 / Fax 952.447.4245 AGREEMENT FOR TEMPORARY STORAGE OF VACANT STRUCTURE ON PROPERTY Agreement made this 15th day of June, 2009, by and between the City of Prior Lake, Minnesota, a Minnesota municipal corporation ("City"); and Gerald D. and Theresa M. Schrank, a married couple ("Owner"). RECITALS A. The Owner is the fee owner of the following property described in Scott County, Minnesota, legally described as follows, to-wit: Lot 2, Block 2, Bluffs of Northwood Meadows, and having a street address of 16037 Tahinka Place NW (the "Property"). B. The Property is currently vacant. C. The Owner desires to move an existing house ("Structure") located at 16046 Tahinka Place NW and temporarily store the Structure on the Property. D. The City is willing to permit the temporary storage of the Structure on the Property by the Owner, subject to the following terms and conditions of this Agreement. AGREEMENT In consideration of the foregoing and the mutual covenants herein, the parties agree as follows: 1. The recitals set forth above are incorporated herein 2. Temporary Storace Permitted. The City hereby approves the temporary storage of the Structure on the Property subject to the following conditions: a. While stored, the Structure must be secured according to the provisions of Prior Lake City Code Section 605.700. "Secure" may include, but is not limited to, installing locks, repairing windows and doors, boarding windows and doors, posting "no-trespassing" signs, installing exterior lighting or motion-detecting lights, fencing the property, and installing a monitored alarm or other security system. b. The Structure must be moved to its permanent location or demolished by September 15, 2009. c. A letter of credit in the amount of $6,500.00 to cover the cost of demolition of the Structure must be maintained. d. If the Structure is not removed by September 15, 2009, the City has the right to enter the Property and remove the Structure, and use the Letter of Credit to pay for the cost of the demolition plus any expenses incurred by the city to enforce this agreement. c:\documents and settings\bob\desktop\schrank_agreement-rev.doc 3. Maintenance. The Owner shall be solely responsible for maintaining the stored Structure and Property as may be reasonably necessary to maintain such improvement in good repair and in a condition that does not constitute an eyesore in the neighborhood. 4. Lienholders' Consent. Any person claiming an interest in the Property, whether as mortgagee, lienholder, or otherwise, must consent to the terms and conditions of this Agreement and agree to be bound by the terms and conditions hereof. 5. Termination. The City may, at its sole discretion, terminate this Agreement at any time by giving the Owner of the Property fifteen (15) days written notice to remove the Structure. The Owner shall remove or demolish the Structure on or before the date set out in the notice of termination. The cost to remove the Structure is the sole responsibility of the Owner. a. If the Owner fails to remove or demolish the structure, as required hereby, the City may do so and use the Letter of Credit provided for in Paragraph 2C to pay for the cost of removal of the Structure. 6. Right of Entry. The Owner hereby consents and grants unto the City, its contractors, agents and assigns, the right to enter upon the Property and commence all activities therewith, for the purposes of removing the stored Structure upon the conditions of either Paragraph 2D or 5A being invoked. 7. Hold Harmless and Indemnitv. The Owner shall indemnify, defend and hold the City and its employees, contractors, agents, representatives, elected and appointed officials, and attorneys harmless from any and all claims, damages, losses, costs and expenses, including attorneys' fees, arising from, based on, or related to the Owner being allowed to temporarily store the vacant structure on the Property, including, but not limited to, any claim asserted against the City as a result of the failure of the Owner to maintain the Property in such a condition as to prevent against injury to persons or property. 8. Entire Aareement. This Agreement contains all the terms and conditions relating to the storage of the Structure on the Property and replaces any oral agreements or other negotiations between the parties. No modifications of this Agreement shall be valid until they have been placed in writing and signed by all parties hereto. 9. Extension. Upon mutual agreement of both parties this agreement may be extended for thirty (30) days. Any request for an extension must be submitted no later than August 24,2009. CITY OF PRIOR LAKE By Ja PROPERTY OWNER Ge~m91' ~~ ~ -:?7t~ Theresa M. Schrank c:\documents and settings\bob\desktop\schrank_agreement-rev.doc 2 STATE OF MINNESOTA ) ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me thisJ.2k..~ay of ~ . 2009, by Jack Haugen, Mayor of the City of Prior Lake, Minnesota, a municipal corpo~ehalf of the corporation. CHARLOTTE R. GREEN NOTARY PUBLll;. t":i~I~E.SOTA My Commission EXpires Jan. 31, 2010 ~~ NOTARY PUBLIC STATE OF MINNESOTA ) ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this ~ay ofO~~ 6 2009, by Frank Boyles, City Manager of the City of Prior Lake, Minnesota, a municipa~on on behalf of the corporation. CHARLOTTE R. GREEN NOTARY PUBLIC. 1."i~I,::SOTA My Commission Expires Jan. 31. 2010 ~-L NOTARY PUBLIC STATE OF MINNESOTA ) ) SS. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this/I~ay Of~, 2009, by Gerald D. Schrank and Theresa M. Schrank. J- r:fi;i~~~ ~c , _M THIS INSTRUMENT WAS DRAFTED BY: ~"'".~ < JUDITH Dlf\P NOTARY PUBLIC - rAINNESOTA My Commission Expires Jan. 31, 2010 City of Prior Lake 4646 Dakota Street SE Prior Lake, MN 55372 c:\documents and settings\bob\desktop\schrank_agreement-rev.doc 3 Scott County, MN Property Information ParcellD: 254590140 Taxpayer Name: GERALD D & THERESA M Taxpayer Address1: 25553 FAIRLAWN AVE Taxpayer Address2: Taxpayer Address3: WEBSTER MN,55088 Property Address1: 16037 TAHINKA PL NW Property Address2: PRIOR LAKE MN School District: 719 Estimated Land Value: $150,000 Estimated Buildings Value: $0 Total Estimated Market Vaue: $150,000 Home Style: Prime Square Footage: Bedrooms: Bathrooms: Year Built Last Sale Date: Thi6 drawing is neither a legally recorded map nor a SUM}' and is nd intended to be used 88 one. This dr~wing is ~ compilation of records, information, and data locate<:! i'I various city, county, and state otrioes, and ather sourees affecting the area sl"lo:wn, and is to, be used fal' reference purposes only. Scott County is Mt responsible (or ~ny inaccuracies herein ""nt~i'ied. If discrepancies ore found, plea.. contact the scon County Surveyors orf.... c:\documents and settings\bob\desktop\schrank_agreement-rev.doc Last Sale Value: Deeded Acreage: 0.43 GIS Acreage: 0.42629 Zoning Classification: Legal DescrlpUon: Sect-04 Twp-114 Range-022 BLUFFS OF NORTHWOOD Plat Name: PLAT-25459 BLUFFS OF Block: 2 Lot: 2 Septic Type: Date Instaned: Tank 1 Capacity: Tank 2 Capacity: Pump Tank Capacity: Date of Last Pump: Unique Well & Boring No,: Well Depth Drilled: Well Date Drilled: Map Scale 1 inch '" 100 feet Map Date 61312009 N W+E S \--~ rSixJtt 4 Page 1 of2 Jane Kansier From: Bob Hutchins Sent: Friday, May 22,20094:57 PM To: Danette Parr; Jane Kansier Subject: RE: 16046 Tahinka Letters of Credit D, Jerry's email is correct concerning LOC's on the two parcels. We need to draft an agreement regarding the 120 day time limit for the vacant lot that the house will be moved onto. Thanks for getting back to Jerry. ~.~'" !,~.,~l,'.! ,~/ "~ Robert D. Hutchins Building Official City of Prior Lake 4646 Dakota Street SE Prior Lake, MN 55372 952.447.9851 Fax 952.440.4263 City Email Updates. Sign up now. -----Original Message----- From: Danette Parr Sent: Friday, May 22,2009 10:03 AM To: Bob Hutchins; Jane Kansier Subject: FW: 16046 Tahinka Letters of Credit It looks good to me. Let me know if you will need anything additional and I'll get back to Jerry (he also left me a phone message earlier today). Thanks, Danette From: jerschrank@aol.com [mailto:jerschrank@aol.com] Sent: Friday, May 22,20099:27 AM To: Danette Parr; Bob Hutchins Cc: gmeyer@priorlake.com; JERSCHRANK@aol.com Subject: 16046 Tahinka Letters of Credit Howdy, Danette and Bob! We are working with Gary Meyer at Prior Lake State Bank for the Letters of Credit (LOC); and he asked for confirmation of two items from you so that the Letters are done correctly the first time. What he needs is the amount requested for each letter, and a timeline for the existence of the letters. He noted that some government organizations want a buffer built into the amount; from what we recall of our conversations, this wouldn't be a requirement for the LOC's being provided on our behalf. Here is the information we have gathered, and provided to Gary: Letter of Credit #1: In the amount of $5,000.00 for demolition of the foundation once the structure is removed. While the work is to be completed within 3 months, we suggested a 120-day LOC, just as an added buffer to cover any time between the issue of the letter and the actual removal date of the home. Letter of Credit #2: In the amount of $6,500.00 for demoliton ofthe physical structure should it become the responsibility of the City. We have gotten quotes, and the low quote of $6,500.00 came from Mark Wangerin, so we are confident in it's validity (we, of course, will be providing you with a copy of the estimate). We once again proposed a 120-day LOC for the same reasons listed above. What we are asking of you is to verify that we are all of the same understanding, and then please reply to all 6/3/2009 addressees, including Gary; that way he can move forward with final preparations for the LOC's. Thanks for your attention, and have a great Memorial Day Weekend! Jerry and Terrie Schrank Page 2 of2 At last. a Qreat mobile device for under $50. Take a Peek! 6/3/2009 Page 1 of3 Jane Kansier From: Bob Hutchins Sent: Wednesday, June 03, 20092:34 PM To: Jane Kansier Subject: FW: 16046 Tahinka Letters of Credit ,...'.ft~....... (~~J:J "~~/ Robert D. Hutchins Building Official City of Prior Lake 4646 Dakota Street SE Prior Lake, MN 55372 952.447.9851 Fax 952.440.4263 City Email Updates. Sign up now. -----Original Message----- From: Bob Hutchins Sent: Thursday, May 28, 2009 12:04 PM To: Danette Parr; 'jerschrank@aol.com' Subject: RE: 16046 Tahinka Letters of Credit Jerry, The demolition permit for 16046 Tahinka PI has been properly submitted by you, the LOC for $5000.00 is yet to be submitted. Also a house moving permit (no cost) needs to be filled out by the moving company (Otting) to move the house to the 16037 Tahinka PIlot. See the attached House Moving Application. Danette is drawing an agreement for the temporary placement of the house onto 16037. The demolition permit with LOC, moving permit and 16037 Tahinka agreement with LOC are required to be fmalized before the permits are issued. Thanks i~~'" !~."~l: \.~/ "~/ Robert D. Hutchins Building Official City of Prior Lake 4646 Dakota Street SE Prior Lake, MN 55372 952.447.9851 Fax 952.440.4263 City Email Updates. Sign up now. -----Original Message----- From: Danette Parr Sent: Wednesday, May 27,200912:01 PM To: jerschrank@aol.com Cc: Bob Hutchins Subject: RE: 16046 Tahinka Letters of Credit We just need to get an agreement drawn up that stipulates the 3 months your allowed to store the house on the adjoining lots, etc. Thanks, Danette From: jerschrank@aol.com [mailto:jerschrank@aol.com] Sent: Wednesday, May 27,200911:57 AM To: Danette Parr Cc: Bob Hutchins; gmeyer@priorlake.com Subject: Re: 16046 Tahinka Letters of Credit 6/3/2009 Page 2 of3 Thanks, Danette! We will forward this to Gary M. at PLSB. We are available Friday morning, and will work with Gary to see if we can't have the paperwork ready by then. If not, we will drop the LaC's off as soon as practical. Paul Otting was out and wanted to know if he needed to do anything with you. If we recall correctly, we filled out the paperwork with Bob; so we are not aware of anything extra that Paul needs to do. If you could verify that, it would be appreciated. Let us know what time works on Friday morning, and we will be up there. Take care, Jerry and Terrie Schrank -----Original Message----- From: Danette Parr <dparr@cityofpriorlake.com> To: jerschrank@aol.com Sent: Wed, 27 May 2009 10:20 am Subject: RE: 16046 Tahinka Letters of Credit Jerry and Terrie: Hi there. Sorry for the delay in getting back to you (in my mind I had already done it, but when I went back and looked, it appeared that in fact I did not). So, I just wanted to make sure you were aware that the email you sent me regarding the LOC's for your two parcels is correct. We need to draft an agreement regarding the 120 day time limit for the vacant lot that the house will be moved onto. Let us know if you have any other questions. How is timing looking for you at the moment? Have a good morning, Danette From: jerschrank(Ci)aol.com [mailto:jerschrank(Ci)aol.com] Sent: Friday, May 22,20099:27 AM To: Danette Parr; Bob Hutchins Cc: gmeyer(Ci)priorlake.com; JERSCHRANK(Ci)aol.com Subject: 16046 Tahinka Letters of Credit Howdy, Danette and Bob! We are working with Gary Meyer at Prior Lake State Bank for the Letters of Credit (LaC); and he asked for confirmation of two items from you so that the Letters are done correctly the first time. What he needs is the amount requested for each letter, and a timeline for the existence of the letters. He noted that some government organizations want a buffer built into the amount; from what we recall of our conversations, this wouldn't be a requirement for the LaC's being provided on our behalf. Here is the information we have gathered, and provided to Gary: Letter of Credit #1: In the a mount of$5,000.00 for demolition of the foundation once the structure is removed. While the work is to be completed within 3 months, we suggested a 120-day LaC, just as an added buffer to cover any time between the issue of the letter and the actual removal date of the home. Letter of Credit #2: In the amount of$6,500.00 for demoliton of the physical structure should it become the responsibility of the City. We have gotten quotes, and the low quote of $6,500.00 came from Mark Wangerin, so we are confident in it's validity (we, of course, will be providing you with a copy ofthe estimate). We once again proposed a 120-day LaC for the same reasons listed above. What we are asking of you is to verify that we are all of the same understanding, and then please reply to all addressees, including Gary; that way he can move forward with final preparations for the LaC's. Thanks for your attention, and have a great Memorial Day Weekend! 6/3/2009 Page 1 of2 Jane Kansier From: Bob Hutchins Sent: Tuesday, June 02, 20094:05 PM To: Jane Kansier Subject: FW: 16046 Tahinka Letters of Credit Jane, Has the 90 day agreement with the Schrank's been drafted? Jerry Schrank inquired today and the message has been sent on to us to answer. Schrank's demo contractor started already -evidently a scheduling change. The agreement should be signed and the LOCs delivered for review before we can issue a demo permit to Schrank. Thanks ....;e......m.~~.'\ 10 I~: " / .,,~J Robert D. Hutchins Building Official City of Prior Lake 4646 Dakota Street SE Prior Lake, MN 55372 952.447.9851 Fax 952.440.4263 City Email Updates. Sign up now. -----Original Message----- From: Danette Parr Sent: Friday, May 29,20099:32 AM To: jerschrank@aol.com Cc: Bob Hutchins; gmeyer@priorlake.com Subject: RE: 16046 Tahinka Letters of Credit Jerry: I just wanted to reiterate (as we discussed on the phone) that the agreement is for allowing the house on your adjacent property for 90 days. You can definitely get the LOC for 120 days if you like, but the agreement is for only 90 days. I misstated it my response email, I'm glad you knew what I meant, but I just wanted to clarify. Thanks much and have a great weekend, Danette From: jerschrank@aol.com [mailto:jerschrank@aol.com] Sent: Wednesday, May 27,200911:57 AM To: Danette Parr Cc: Bob Hutchins; gmeyer@priorlake.com Subject: Re: 16046 Tahinka Letters of Credit Thanks, Danette! We will forward this to Gary M. at PLSB. We are available Friday morning, and will work with Gary to see if we can't have the paperwork ready by then. If not, we will drop the LOC's off as soon as practical. Paul Otting was out and wanted to know if he needed to do anything with you. If we recall correctly, we filled out the paperwork with Bob; so we are not aware of anything extra that Paul needs to do. If you could verify that, it would be appreciated. Let us know what time works on Friday morning, and we will be up there. Take qrre, Jerry and Terrie Schrank -----Original Message----- From: Danette Parr <dparr@cityofpriorlake.com> To: jerschrank@aol.com 6/3/2009 Page 2 of2 Sent: Wed, 27 May 200910:20 am Subject: RE: 16046 Tahinka Letters of Credit Jerry and Terrie: Hi there. Sorry for the delay in getting back to you (in my mind I had already done it, but when I went back and looked, it appeared that in fact 1 did not). So, 1 just wanted to make sure you were aware that the email you sent me regarding the LOC's for your two parcels is correct. We need to draft an agreement regarding the 120 day time limit for the vacant lot that the house will be moved onto. Let us know if you have any other questions. How is timing looking for you at the moment? Have a good morning, Danette From: jerschrank@aol.com [mailto:jerschrank@aol.com] Sent: Friday, May 22,20099:27 AM To: Danette Parr; Bob Hutchins Cc: gmeyer@priorlake.com; JERSCHRANK@aol.com Subject: 16046 Tahinka Letters of Credit Howdy, Danette and Bob! We are working with Gary Meyer at Prior Lake State Bank for the Letters of Credit (LOC); and he asked for confirmation of two items from you so that the Letters are done correctly the first time. What he needs is the amount requested for each letter, and a timeline for the existence of the letters. He noted that some government organizations want a buffer built into the amount; from what we recall of our conversations, this wouldn't be a requirement for the LOC's being provided on our behalf. Here is the information we have gathered, and provided to Gary: Letter of Credit #1: In the a mount of $5,000.00 for demolition of the foundation once the structure is removed. While the work is to be completed within 3 months, we suggested a 120-day LOC, just as an added buffer to cover any time between the issue of the letter and the actual removal date of the home. Letter of Credit #2: In the amount of $6,500.00 for demoliton of the physical structure should it become the responsibility of the City. We have gotten quotes, and the low quote of $6,500.00 came from Mark Wangerin, so we are confident in it's validity (we, of course, will be providing you with a copy of the estimate). We once again proposed a 120-day LOC for the same reasons listed above. What we are asking of you is to verify that we are all of the same understanding, and then please reply to all addressees, including Gary; that way he can move forward with final preparations for the LOC's. Thanks for your attention, and have a great Memorial Day Weekend! Jerry and Terrie Schrank At last. a Qreat mobile device for under $50. Take a Peek! Dinner Made Easy - Get meal ideas and money-saving coupons! Get Recipe Ideas! 6/3/2009 ~PRl...... O. RLAKE Y12 STATE BANK Main office: 16677 Duluth Ave SE P.O. Box 369 Prior lake. MN 55372 Branch office: 14033 Commerce Ave. NE Prior lake, MN 55372 McKenna olTice: 13810 Shepherd's Path Prior lake. MN 55379 Phone: 952-447-2101 24 Hour TeleBank: 952-447-BANK (2265) www.priorlakestatebank.com City of Prior Lake 16200 Eagle Creek Avenue Prior Lake. MN 55372 IRREVOCABLE LETTER OF CREDIT NO. 1431 EXPIRATION DATE: OCTOBER 5. 2009 Dear Sir or Madam: We hereby issue. for the account of GERALD AND THERESA SCHRANK. for the DEMOLITION of FOUNDATION AT: 16046 TAHINKA PLACE. PRIOR LAKE. and in your favor. our Irrevocable Letter of Credit in the amount of FIVE Thousand and 00/100 ($5.000.00) U.S. Dollars. available to you by your draft drawn on sight on the undersigned bank. The draft must: a) Bear the clause. "Drawn under Letter of Credit No. 1431 dated JUNE 5. 2009. of Prior Lake State Bank". b) Be signed by the Mayor or City Manager of the City of Prior Lake. c) Be presented for payment at Prior Lake State Bank. 16677 Duluth Avenue SE. Prior Lake. Minnesota. on or before 4:00 P.M. on OCTOBER 5. 2009. This Letter of Credit shall NOT automatically renew. This Letter of Credit sets forth in full our understanding which shall not in any way be modified. amended. amplified or limited by reference to any document. instrument or agreement, whether or not referred to herein. This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be made under this Letter of Credit. This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice for Documentary Credits. International Chamber of Commerce Publication No. 400. We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored upon presentation. :~NTE_:~ :~_ ~~__________ t~~luent City of Prior Lake 16200 Eagle Creek Avenue Prior Lake. MN 55372 Main office: 16677 Duluth Ave SE P.O. Box 369 Prior lake. MN 55372 Branch office: \4033 Commerce Ave. NE Prior lake, MN 55372 McKenna office: 13810 Shepherd's Path Prior Lake, MN 55379 Phone: 952-447-2101 24 Hour TeleBank: 952-447-BANK (2265) ~ A ~ www.priorlakestatebank.com --n.\: (S C () . v. 'MUCf(~ (IN y,u fO V tft 0.;' '" ~ L t9.L. 6.v- f~(!4:fvri6f'Jtv~ /" ur S (z.6c.pvJ!> + P<A,,.,r<>7j ~ /2ec::4 ~~f1'ND flAS R-~ ~1/6tJ .--- ..;/' -51~ (plf// /0; ~t.-r J;V &1 fZ,BI"" ~&~ ~s, s'^!-~bfr /"~. d- OIC-- ~L-7 (:ja4 cr4:>/ckf ~~ IRREVOCABLE LETTER OF CREDIT NO. 1431 EXPIRATION DATE: OCTOBER 5. 2009 Dear Sir or Madam: We hereby issue. for the account of GERALD AND THERESA SCHRANK. for the DEMOLITION of FOUNDATIDN AT; I6D46 TAHINKA PLACE. PRIDR LAKE. and in your favor. our Irrevocable Letter of Credit in the amount of FIVE Thousand and 00/100 ($5.000.00) U.S. Dollars. available to you by your draft drawn on sight on the undersigned bank. The draft must: a) Bear the clause. "Drawn under Letter of Credit No. 1431 dated JUNE 5. 2009. of Prior Lake State Bank". b) Be signed by the Mayor or City Manager of the City of Prior Lake. c) Be presented for payment at Prior Lake State Bank. 16677 Duluth Avenue SE. Prior Lake. Minnesota, on or before 4:00 P.M. on OCTOBER 5. 2009. This Letter of Credit shall NOT automaticallY renew. This Letter of Credit sets forth in full our understanding which shall not in any way be modified. amended. amplified or limited by reference to any document. instrument or agreement. whether or not referred to herein. This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be made under this Letter of Credit. This Letter of Credit shall be governed by the most recent revision of the Uniform customs and Practice for Documentary Credits. International Chamber of Commerce publication No. 400. We herebY agree that a draft drawn under and in compliance .1th this Letter of Credit shall be duly honored upon presentation. :~~:t~'~--------- Main office: 16677 Duluth Ave SE P.O. Box 369 Prior Lake. MN 55372 Branch office: 14033 Commerce Ave. NE Prior Lake. MN 55372 McKenna office: 13810 Shepherd's Path Prior Lake. MN 55379 Phone: 952-447-2101 24 Hour TeleBank: 952-447-BANK (2265) www.priorlakestatebank.com . ~\S L.o.G Jir ~ tJ~ \0 ~1 City of Prior Lake 16200 Eagle Creek Avenue Prior Lake. MN 55372 IRREVOCABLE LETTER OF CREDIT NO. 1432 EXPIRATION DATE: OCTOBER 5. 2009 Dear Sir or Madam: We hereby issue. for the account of GERALD AND THERESA SCHRANK. for the DEMOLITION of STRUCTURE AT; 16037 TAHINKA PLACE. PRIOR LAKE. if the City becomes responsible for it and in your favor. our Irrevocable Letter of Credit in the amount of SIX Thousand FIVE Hundred and 00/100 ($6.500.00) U.S. Dollars. available to you by your draft drawn on sight on the undersigned bank. The draft must: a) Bear the clause. "Drawn under Letter of Credit No. 1432 dated JUNE 5. 2009. of Prior Lake State Bank" . b) Be signed by the Mayor or City Manager of the City of Prior Lake. c) Be presented for payment at Prior Lake State Bank. 16677 Dul uth Avenue SE. Prior Lake. Minnesota. on or before 4:00 P.M. on OCTOBER 5. 2009. This Letter of Credit shall NOT automatically renew. This Letter of Credit sets forth in full our understanding which shall not in any way be modified. amended. amplified or limited by reference to any document. instrument or agreement. whether or not referred to herein. This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be made under this Letter of Credit. This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice for Documentary Credits. International Chamber of Commerce Publication No. 400. We hereby agree that a draft drawn under andt7i npCJCjOI~J,Pbll~,a7 ,e Wisth thi()S ~Letco~'7 Of?r:di t shall be duly honored upon presentation. . ~~ ? f JUNE 5. ~ BY: ~~_~~~ . '-~~~ - ~~:: ~~~~~~~~_~ ~1.-11{) 'T[+ ('7. f ::: 1 ce P r s ffinT~-r:::=.L . (""'" t:;;f' IV-~ I I ../W . /)) IvV ~ 't:>(<JJ~ o(f.Y' N~~D_6. 1ft~/or ~~ tI w8 fIAt-/., 11.iJ.J;#i I;;J; qJ q:1II hdj1., /')~"1l+<" Ln /. lolt; dq WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, Motion By: Hedberg Second By: Erickson The City entered into an Agreement with the fee Owner of property located at 16037 Tahinka Place, NW, Prior Lake MN and legally described as follows: Lot 2, Block 2, Bluffs of Northwood Meadows, and having a street address of 16037 Tahinka Place NW (the "Property"). and The Property is currently vacant; and The Owner desires to move an existing house ("Structure") located at 16046 Tahinka Place NW and temporarily store the Structure on the Property; and The City is willing to permit the temporary storage of the Structure on the Property by the Owner, subject to the following terms and conditions of this Agreement; and The City Council adopted Resolution 09-089 on June 15, 2009, approving an agreement to allow the temporary storage of a structure on the property until September 15, 2009; and The Owner has requested a 60-day extension to the deadline, to allow the structure to be stored on the property until November 15, 2009; and NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: The City Council has considered this request and finds it consistent with the original agreement. 1. The recitals set forth above are incorporated herein. 2. The City Council hereby authorizes the extension of the deadline to allow the temporary storage of a vacant and unoccupied structure on the property located at 16037 Tahinka Place NW from September 15, 2009, to November 15, 2009. 3. This deadline shall not be effective until the Owner has renewed the Letter of Credit it provided to the City for 60 days beyond its current expiration date. 4. In the event the property owner fails to renew the Letter of Credit by September 15, 2009, or fails to remove or demolish the structure by November 15, 2009, the City may demolish the structure in accordance with the Agreement. PASSED AND ADOPTED THIS 8TH DAY OF SEPTEMBER, 2009. YES NO Hauaen X Hauaen Erickson X Erickson Hedberg X Hedbera LeMair X LeMair Millar X Millar www.ci~OHbriorlake.com M'I('()IIf\lr.11 1k>1=!=:()IIITI\?nnQlnQ_1?n l':tnr..l':lrr",Ii"p ("In 1Rn~7 T"hi" (' Phone 952.447.9800 / Fax 952.447.4245 Page 1 of 1 Jane Kansier From: Jane Kansier Sent: Wednesday, June 03,20093:18 PM To: 'Suesan L. Pace' Cc: Frank Boyles; Kelly Meyer; Danette Parr; Bob Hutchins Subject: Agreement for Temporary Storage of Vacant House on Property Suesan ~ The Schrank's are planning to move the existing house they own and temporarily store it on the lot next door, which they also own. They have sold the existing lot and a new house will be constructed there. Normally, we would require immediate removal or demolition, but the Schrank's are in the process of working with Habitat for Humanity or another potential buyer to move the house for permanent location on another lot. We have agreed to allow them 90 days to either move or demolish the house, subject to approval of an agreement by the Council. Attached is a draft agreement. I used the Private Use of Property standard agreement as a model. We would like to bring this to the City Council on June 1 5, 2009, so I would appreciate receiving your comments by Friday, June 8th I know this is short notice, but it is a very short (2 pages) agreement. Thank you for your help. Jane Kansier, AICP Building and Transportation Services Director City of Prior Lake 952-447-9812 Sign up now for City of Prior Lake Email Updates. 6/3/2009 August 24,2009 City of Prior Lake Attn: Danette Parr, Bob Hutchins Jerry and Terrie Schrank 25553 Fairlawn Ave. Webster, MN 55088 Danette and Bob, Per our letter of permission to store the vacant house on our lot at 16037 Tahinka Place, if we expected to keep the home on the vacant lot past September 15,2009 it was requested that we make that request by today. To that end, as you are aware, Habitat for Humanity is planning on taking the house. However, it is very likely at this point that they will not be ready for the home by September 15. It also appears that they will be ready sometime between October 15 and November 1. Allowing for the potential for inclement weather as we get into the autumn time frame, we think it is prudent to add a small time buffer into that projection. Therefore, at this time we are asking that a 60-day extension be granted to the request for the temporary storage of the home at 16037 Tahinka Place, with a new removal date of November 15. All other terms of the existing agreement would remain in effect as written. We thank you for your efforts thus far and your consideration of this request. Respectfully, ~:s) V)~ CJ Jerry and Terrie Schrank 0LRAe -;u..... 7} 7 Ac/vuC.~ E-mail Version sent on August 24,2009. Signed copy mailed that date as well.