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HomeMy WebLinkAbout5J - 16037 Tahinka Place NW MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ISSUES: 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT SEPTEMBER 8, 2009 5J JANE KANSIER, BUILDING AND TRANSPORTATION SERVICES DIRECTOR CONSIDER APPROVAL OF A RESOLUTION APPROVING AN EXTENSION TO 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 a 60-day extension to the 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. The original agreement stated 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. Historv On June 15, 2009, the City Council adopted Resolution 09-089, approving an agreement with Gerald and Theresa Schrank. The agreement allowed the Schrank's to move and temporarily store the vacant structure to the lot next door, at 16037 Tahinka Place NW. This house has been donated to Habitat for Humanity and will be relocated to the property at Elm and CR 12. Current Circumstances The original agreement (see attached) provided 90 days to make arrangements to move the house to a more permanent site. The Schranks submitted a letter of credit for $6,500 to cover the cost of demolishing the structure in the event the house was not removed. The original agreement also allowed the Schrank's the opportunity to request a 30-day extension to the 90-day timeline. The attached letter from Mr. and Ms. Schrank requests a 60-day extension. This would give them to November 15, 2009, to relocate the house. They believe this will allow Habitat for Humanity the time they need to get the house in place. There are two major issues pertaining to this request. 1. The original agreement states "upon mutual agreement of both parties this agreement may be extended for thirty (30) days." A 30-day extension would allow the house to be stored until October 15, 2009. The staff has asked the City Attorney whether the Council can authorize a 60-day extension to the contract at this time, or whether an additional request must be submitted after a 30-day extension is approved. The City Attorney believed that the Council may amend its original agreement to provide for a sixty-day extension or approve a thirty-day extension and an additional thirty day-extension, if necessary. C:\DOCUME-1 \mjg\LOCALS-1 \Tem~~fUb~~6tf%l~n(ja~~rl.adt4 7.4245 www.cityofpriorlake.com 2. The letter of credit submitted with the original agreement expires on October 5, 2009. If the City Council approves the extension, it should be subject to the condition that the letter of credit is renewed for the same amount of time. 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. If the extension is approved, the LOC must be renewed for the same amount of time. AL TERNATIVES: 1. Adopt the attached resolution approving the 30- or 60-day (subject to City Attorney approval) extension to the agreement to allow the temporary storage of a vacant and unoccupied structure on the property located at 16037 Tahinka Place NW, subject to the condition the letter of credit is renewed for the same amount of time. 2. Other action as directed by the Council. RECOMMENDED MOTION: A motion and second adopting a resolution approving the extension to the agreement to allow the temporary storage of a vacant and unoccupied structure on the property located at 16037 Tahinka Place NW, subject to the condition the letter of credit is renewed for the same amount of time. Reviewed by: f2ZS!:: i~:, C:\DOCUME-1\mjg\LOCALS-1\Temp\iScrub\2159 165th Agenda Report.doc WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 09-xxx Motion By: Second By: The City entered into an Agreement with the fee Owner is the fee owner of the following property located at 16037 Tahinka Place, NW, Prior Lake MN and described in Scott Cf:ur.ty, Minnesota, legally described as follows,: te-wit 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 The City Council has considered this request and finds it consistent with the original 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 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 I Haugen I Erickson I Hedberg I LeMair I Millar Haugen Erickson Hedberg LeMair Millar Frank Boyles, City Manager www.cityofpriorlake.com R:'.CeIolFlElil\,;!gOg ^geFlda Repel'tElQg os OQ\S~h.~nl'_"''''iR&ior:U;~i&QllltioR FI~lbl nf"'ll"' 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. Temoorarv Storaae 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 settingslbobldesktoplschrank_agreement-rev.doc C:\DOCUME-1\mjg\LOCALS-1\Temp\iScrub\2159165th Agenda Report.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 20 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 PROPERTY OWNER ~\OfL/~/ Gerald O. S'C"hrank J ~'-~~h Theresa M. Schrank c:\documents and settingslbobldesktop\schrank_agreement-rev.doc 2 C:\OOCUME-1\mjg\LOCALS-1\Temp\iScrub\2159 165th Agenda Report.doc STATE OF MINNESOTA ) ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me thi~cklay of~. 2009, by Jack Haugen, Mayor of the City of Prior Lake, Minnesota, a municipal corpor~on on behalf of the corporation. _ e~"'-" --.. .~: II'J ri---<f.."'l....-~~ t CHARLOTTE R. GREEN 1 ~ " NOTARY PUBLll;' t:,:":,,,i:>QTA ! ~ \,..:; My Commission E.pires Jan. 3\, 2010 : ~~'&:":I;Z']-:''''j..-:'''J:;-:r~:- ':'':'~':=':;';:;j" ~~ NOTARY PUBLIC STATE OF MINNESOTA ) ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this a~ay of01.AO f! . 2009, by Frank Boyles, City Manager of the City of Prior Lake, Minnesota, a municipa~p-;ation on behalf of the corporation. ~-~ ... ~-_....--- -"='''=''=<:<::~--. ~ CHARLOTTE R GREEN ! ~ ' NOTARY PUBLIC .1.'.:;~:'i:SOTh : ~ . My Commission Expires Jan. 31. 2010 I f..ce;o - .......-..;'"'..:......:.....::,~......;._...:,....~....', G..... 11 .. 11 t -~gr;-~- NOTARY PUBLIC STATE OF MINNESOTA THIS INSTRUMENT WAS DRAFTED BY: ) ) ss. COUNTY OF SCOTT ) The fo"",o;ng Instrument was acknowledged before me this Il"'day of d ,~ , 2009, by Gerald D. Schrank and Theresa M. Schrank. Ii . r1,11t -.~ ",,/6 NfARY PUBLIC r:"'-~~' .- jUDITIi D~;.I~"~'~ , : : NOTARY PUBLIC. r,;:NNEi:>OJ1< i l.-~~~~___My_~~~si_on Expires Jan 31,2010 K '." oJ '"',-' ..... ,.._.r-".~l"""'...'l...-l......,.~"... -1'-~-C~-"1III.. City of Prior Lake 4646 Dakota Street SE Prior Lake, MN 55372 c:\documents and settingslbob\desktop\schrank_agreement-n~v.doc 3 C:\DOCUME-1\mjg\LOCALS-1\Temp\iScrub\2159 165th Agenda Report.doc Scott County, MN Property Information ParceIID:254590140 Taxpayer Name: GERALD D & THERESA !vi Taxpayar Address1: 25553 FAIRLAWN AVE Taxpayer Address2: Taxpayer Address3: WEBSTER MN,55088 Property Address1: 16037 TAHiNKA PL NW Property Addre,ss2: PRIOR LAKE MN School Dlstrtct: 719 Estimated llind Value: $150,000 E:stlmated Buildings Value: $0 Total Estimated Market Value: $150,000 Home Style: Prima Square Footage: BedroomS: Bathrooms: Year Buill: Last Sale Date: Tha drawing is neithli?ra legally reco(dedr'r.!l.~;M(.a $lJtir~ and j~ not intende~ to be USI!ld as ene. This cr.awing ,is ,~<:atnli~ationof records, i..,f(lfrnat'on, and data Ioeated il'I ~riOL18 t:i~, c<lunt), .aooBtat_eotfioes, and other aour0e5 affediog the area .ahollotl, and _to be uH..:lJOt teffll'enee pul'PClStl'S only~ ~tt Ccl.unl)< is nct re&pcinsllllffct airy inaccuraCies here,in oontaine<l. If dlSetep2Mle3.oro fo:.md. ple,aae contzrd the S~lI. CQunty Sufve:yors Office. c:\documents and sellingslbob\desktoplschrank_agreement.rev.doc Last Sale Value: Deeded Acraage: 0.043 GIS ACreagE>: 0,42629 ZOning Classlftcation: Legal Deseriptlon: Sectc04 Twp-114 Range-022 BLUFFS OF NORTHWOOD Plat Nanle: PLAT-25459 BLUFFS OF Block: 2 Lol:2 Septic Type: Data Inslaned: Tank 1 Capacity: Tan k 2Capaclly: Pump Tank Capacity: Data ot,Last Pump: Unique, Wall & Boring No.: Well Depth Drilled: Well Date Drilled: Map Scale 1 inc/") = 100 feet Map Date 613/2009 W+E S .-... . -'); ,". ~ ,,~.'I-"~'" lSrott 4 C:\DOCUME-1 \mjg\LOCALS-1 \Temp\iScrub\2159 165th Agenda Report.doc 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 expect~d 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 fi'ame, we think it is pmdent 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 YOll for your efforts thus far and your consideration of this request. Respectfully, ,. _=s- \{) <) C. {) ) . <. ~ Jerry and Terrie Schrank "'CfL.fAe..1........ -} J7 AclvuL-l'c/ E-mail Version sent on August 24, 2009. Signed copy mailed that date as well. C:\DOCUME-1\mjg\LOCALS-1\Temp\iScrub\2159 165th Agenda Report.doc