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HomeMy WebLinkAbout7A Owens-Credit River Township Annexation Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: AUGUST 20, 2018 AGENDA #: 7A PREPARED BY: CASEY MCCABE, COMMUNITY DEVELOPMENT DIRECTOR PRESENTED BY: CASEY MCCABE AGENDA ITEM: CONSIDER APPROVAL OF AN ORDINANCE ANNEXING APPROXIMATELY 13.86 ACRES OF PROPERTY LOCATED AT 6010 170th STREET IN CREDIT RIVER TOWNSHIP PURSUANT TO MINNESOTA STATUTES 414.033, SUBD. 2 (3) AND A RESOLUTION ADOPTING THE SUMMARY OF ORDINANCE AND ORDERING THE PUBLICATION OF SAID SUMMARY DISCUSSION: Introduction The purpose of this agenda item is to consider approving an application to annex approximately 13.86 acres of land to the City of Prior Lake from Credit River Township. The subject property is located north of 170th Street East, adjacent to the Welcome Avenue Industrial Park. History JPOwens LLC, has petitioned the City of Prior Lake to annex approximately 13.86 acres of land in Section 6 of Credit River Township pursuant to Minnesota Statutes 414.033, Subd. 2 (3). The property is adjacent to the City of Prior Lake southeastern limits and generally in the northwest corner of Credit River Township. The subject property is located east of the Welcome Avenue Industrial Park and north of the 9.35-acre Leira Properties LLC parcel which the City Council approved for annexation on July 16, 2018. Current Circumstances Under Minnesota Statutes 414.033, Subdivision 2 (3), a municipal council may by ordinance declare land annexed to the municipality if : 1) the land abuts the municipality; 2) the area to be annexed is 120 acres or less, 3) the area to be annexed is not presently served by public wastewater facilities or public wastewater facilities are not otherwise available, and 4) the municipality receives a petition for annexation from all the property owners of the land. Except as provided for by an orderly annexation agreement, (no orderly annexation agreement exists for this property) this clause may not be used to annex any property contiguous to any property previously annexed under this clause within the preceding 12 months if the property is owned by the same owners and annexation would cumulatively exceed 120 acres. The method of annexation by ordinance does not require approval of the township or Chief Administrative Law Judge but does require a public hearing by the City Council. City staff has provided 30-days written notice by certified mail to the Credit River Township Board and to all owners of land adjacent to the property in question. During the application review, city staff identified a few potential issues to be addressed prior to making a recommendation to the City Council. The primary issues related to future street connections to and through the JPOwens property; future land use and zoning designations; the timing of utility connections; and wellhead area protections. The City Attorney has prepared the attached Agreement for Annexation of the JPOwens Property in Credit River Township to address the city staff comments. The attached Agreement for Annexation differs slightly from the agreement that was presented to the Council for the Leira Properties, LLC annexation request in July. The applicant had reservations with granting an easement at this time as the single-family residence on the property is occupied and the property owners did not want to provide ‘public access’ to the easement parcel until the property has been sold. The applicant and city staff worked with the City Attorney who included language in the agreement requiring the right-of-way easement be conveyed to the City prior to any sale, transfer, subdivision or change in use of the property. It is staff’s recommendation the City Council approve the annexation of this parcel conditioned upon the property owner entering into the Agreement for Annexation with the City of Prior Lake. It is staff’s intent to have the property owner execute the agreement prior to the meeting at which the council will consider annexation. The Prior Lake Economic Development Authority (EDA) reviewed this annexation request during their August 13, 2018 meeting and by a vote of 3-0-2, the EDA recommended the City Council approve the annexation request. Conclusion The property in question, which is in the Prior Lake – Savage School District, is occupied by a single-family residential structure and two outbuildings totaling approximately 6,000 square feet. The property meets the criteria for annexation under Minnesota Statutes Section 414.033, Subdivision 2 (3). The land abuts the City of Prior Lake, the area to be annexed is less than 120 acres, the area to be annexed is not presently served by public wastewater facilities and public wastewater facilities are not otherwise available, and the City of Prior Lake received a petition for annexation from the owner of 100% of the property. There are several reasons the City Council should consider approval of the annexation request, including: ➢ An opportunity to secure right-of-way for a future street connection through the property; ➢ The ability to ensure protections for future development in this wellhead protection area; ➢ The diversification of the city’s tax base through additional commercial development opportunities; and ➢ Capitalizing on the investment in public utilities available to serve this area. Right-of-Way: The intersection of Revere Avenue and CH21 has long been identified by city and county officials as an intersection in need of functional and safety improvements. With the approval of the Leira Properties, LLC annexation request, the City of Prior Lake received right-of-way for an extension of Revere Avenue (CH 87) to 170th Street. The Annexation Agreement for the JPOwens property would also secure right-of-way to further extend this future street to the north from 170th Street. Wellhead Protection: A Wellhead Protection Area (WHPA) is the Minnesota Department of Health approved surface and subsurface area surrounding a public water supply well or well field that supplies a public water system, through which contaminants are likely to move toward and reach the well or well field. The subject site is within a City of Prior Lake WHPA. The current and future uses of the site raises concerns related to groundwater and ultimately drinking water contamination. If this property were annexed, Prior Lake city code, public works design manual and zoning ordinances would alleviate some of the concern surrounding development in the WHPA with the regulations related to permitted and conditional uses, imperious surface requirements, storm water controls, etc. Since such controls will ultimately impact Prior Lake today and as a city of 38,000 in the future, it is desirable that the city regulate this important public health issue. Economic Development: The subject property would provide additional Industrial/Business Park property, which is needed in the City of Prior Lake. Prior Lake has approximately 35 acres of vacant shovel-ready commercial property and approximately 25 acres of vacant shovel-ready business park and industrial property. According to the 2017 Commercial and Industrial Demand Analysis completed for Scott County by Maxfield Research, Prior Lake has a demand for an additional 1.3 million square feet of retail, office and industrial development by the year 2040; this level of development will require approximately 140 acres of land to accommodate the projected demand. This subject site is contiguous and a logical addition to the Welcome Avenue Industrial Park. Available Utilities: The city has water, sanitary sewer and storm sewer services available within approximately 200 feet of the subject property. Utilities were installed in the Welcome Avenue area in recent years and the utilities were sized in such a way that the city has capacity to serve this property. Costs associated with connecting the site to city services will be the responsibility of the property owner or future developer. Connection to city services would be required prior to any further development of the property. Zoning: This property is not included on the City’s Comprehensive Land Use Plan Map or Zoning Map. If the City Council approves the annexation, the property will automatically be classified as R-1, Low Density Residential on the City Zoning Map in conformance with Subsection 1101.801 of the city code. Eventually, either the City Council or the petitioner must initiate an amendment to the Comprehensive Plan Map to include this area. The Agreement for Annexation addresses the appropriate commercial and industrial land uses for this property. JPA: The city and township have enjoyed years of cooperation in numerous venues, perhaps most significant is fire service. This positive relationship should continue. As was discussed as part of the Leira Properties, LLC annexation application, city staff and Annexation Task Force members have discussed the option of entering in to a Joint Powers Agreement (JPA) with Credit River ISSUES: Township, wherein the City of Prior Lake could potentially provide sewer and water services to township property for a fee and the parcels would remain in Credit River Township. The staff and Annexation Task Force did not believe that a JPA would adequately address the issues outlined above. From an economic development perspective, the JPA would allow the property to remain in Credit River Township relying upon contractual public utilities from the city. The city has taken the position that city utilities will only be extended to property which is, or will be, within the city’s corporate limits; to do otherwise would not be equitable to Prior Lake residents whose property taxes, sewer and water rates and special assessments support all kinds of city infrastructure. Residents of other communities, understandably, do not provide such financial support. The city’s utilities are approximately 200 feet away from this property and are most appropriate to serve this area, rather than extending services from far away which is likely to be both expensive and protracted. This property should be zoned in a fashion consistent with the surrounding city property both for aesthetic, planning and financial reasons. For these reasons, neither the staff nor Annexation Task Force members supported the JPA option. It would be understandable for the township to be concerned about this annexation leading to additional property annexation by the city. While the action of a present council cannot bind a future council, it seems likely that the city’s only interest for future annexation within Credit River Township would be the parcels to the immediate north and east of this property, totaling about 22 acres, for many of the same reasons articulated above. FINANCIAL IMPACT: Approval of the annexation will allow the development of the property within the City limits, which will increase the City tax base. Under Minnesota Statutes 414.033, Subdivision 12, the property will also be subject to tax feathering, as follows: Subd. 12.Property taxes. When a municipality annexes land under subdivision 2, clause (2), (3), or (4), property taxes payable on the annexed land shall continue to be paid to the affected town or towns for the year in which the annexation becomes effective. If the annexation becomes effective on or before August 1 of a levy year, the municipality may levy on the annexed area beginning with that same levy year. If the annexation becomes effective after August 1 of a levy year, the town may continue to levy on the annexed area for that levy year, and the municipality may not levy on the annexed area until the following levy year. In addition, pursuant to Minnesota Statutes § 414.036, staff is proposing that with respect to the property taxes payable on the subject property, the City of Prior Lake shall pay Credit River Township two times the amount of taxes that the township levied against the subject property in 2018, which totals $981.32. Both measures are intended to mitigate any financial impacts that this annexation could have on the township. ALTERNATIVES: 1. Motion and second approving an ordinance annexing the property, subject to the property owner executing the Agreement for Annexation of JPOwens, LLC Property in Credit River Township. 2. Motion and second authorizing the Mayor and City Manager to enter into the Agreement for Annexation of JPOwens, LLC Property in Credit River Township and approving a resolution adopting the summary of ordinance and ordering the publication of said summary. 3. Motion and second to deny the ordinance annexing the property. 4. Motion and a second to table action and provide further direction to city staff. RECOMMENDED MOTION: ATTACHMENTS: Staff Recommends Alternatives Number 1 and 2. 1. Location Map 2. Agreement for Annexation 3. Minnesota Statutes 414.033 1 CITY OF PRIOR LAKE ORDINANCE NO. 118-____ AN ORDINANCE OF THE CITY OF PRIOR LAKE, MINNESOTA ANNEXING LAND LOCATED IN CREDIT RIVER TOWNSHIP, SCOTT COUNTY, MINNESOTA PURSUANT TO MINNESOTA STATUTES § 414.033 SUBDIVISION 2(3), PERMITTING ANNEXATION BY ORDINANCE WHEREAS, a petition signed by the sole property owner, requesting that property legally described herein be annexed to the City of Prior Lake, Minnesota, was duly presented to the Council of the City of Prior Lake on the 20th day of August 2018; and WHEREAS, said property is unincorporated and abuts the City of Prior Lake on its southeastern boundary; is less than 120 acres; is not presently served by public sewer facilities or public sewer facilities are not otherwise available; and WHEREAS, said property is not located within a flood plain or shoreland area; and WHEREAS, said property is currently residential and annexation is requested to facilitate the extension of city services for the urban commercial/industrial development of the property; and WHEREAS, the City of Prior Lake held a public hearing pursuant to Minnesota Statutes § 414.033 Subd. 2b, on August 20, 2018, following thirty (30) days written notice by certified mail to the Town of Credit River (‘Town’) and to all landowners within and contiguous to the area legally described (herein or attached exhibit), to be annexed; and WHEREAS, provisions of Minnesota Statutes § 414.033 Subd. 13 are not applicable in that there will be no change in the electric utility service provider resulting from the annexation of the territory to the municipality. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PRIOR LAKE HEREBY ORDAINS AS FOLLOWS: 1. The City Council hereby determines that the property as hereinafter described abuts the city limits and is or is about to become urban or suburban in nature in that commercial or industrial uses being proposed for said property, the construction of which requires or will need city services, including public sewer facilities. 2. None of the property is now included within the limits of any city, or in any area that has already been designated for orderly annexation pursuant to Minnesota Statute § 414.0325. 3. The corporate limits of the City of Prior Lake, Minnesota, are hereby extended to include the following described property, said land abutting the City of Prior Lake and being 120 acres or 4646 Dakota Street SE Prior Lake, MN 55372 2 less in area, and is not presently served by public sewer facilities or public sewer facilities are not otherwise available, and the City having received a petition for annexation from all the property owners of the land, to wit: The South 1391.13 feet of the West ½ of the Southwest ¼ of Section 6, Township 114, Range 21, Scott County, Minnesota lying West of the East 366.00 feet thereof, except the West 375.75 feet of the East 741.75 feet of the South 1391.13 feet of the West Half of the Southwest Quarter of Section 6, Township 114, Range 21, Scott County, Minnesota. (PID 049060100) The above described property consists of a total of 13.86 acres, more or less. Copies of the corporate boundary map showing the property to be annexed and its relationship to the corporate boundaries and all appropriate plat maps are attached as Exhibit A. 4. The City of Prior Lake, pursuant to Minnesota Statutes § 414.036, that with respect to the property taxes payable on the area legally described herein, hereby annexed, shall pay to the Town of Credit River as follows: a. Two times the amount in taxes that the Township levied against the property in 2018, the year of annexation. b. The City shall remit payment in two equal payments, the first payment is due by December 15th in the year the property is annexed, and the second payment is due by December 15th in the year following annexation. c. Property ID 049060100 had Town taxes of $490.66 payable in 2018; two times that amount equals $981.32, to be paid in two equal payments of $490.66 each. 5. That pursuant to Minnesota Statutes § 414.036 with respect to any special assessments assigned by the Town to the annexed property and any portion of debt incurred by the Town prior to the annexation and attributable to the property to be annexed, but for which no special assessments are outstanding, for the area legally described herein there are no special assessments or debt incurred by the Town of Credit River on the subject for which reimbursement is required. 6. Following the property owner entering into the Agreement for Annexation of JPOwens, LLC Property Credit River Township, the City Manager of the City of Prior Lake is hereby authorized and directed to file a copy of this Ordinance with the Municipal Boundary Adjustment Unit of the Office of Administrative Hearings, the Minnesota Secretary of State, the Scott County Auditor, and the Credit River Township Clerk. 7. That this Ordinance shall be in full force and effect and final upon the date this Ordinance is approved by the Office of Administrative Hearings. Passed and adopted by the Prior Lake City Council this 20th day of August 2018. ATTEST: City Manager Mayor A summary of this ordinance was published in the Prior Lake American on the 25th day of August 2018. 3 EXHIBIT A 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 18-___ A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE 118-_____ AND ORDERING THE PUBLICATION OF SAID SUMMARY Motion By: Second By: WHEREAS, In accordance with Minnesota Statute, the City Council held a public hearing regarding the petition from all property owners, requesting that PID 049060100, totaling approximately 13.86 acres in Credit River Township be annexed to the City of Prior Lake on August 20, 2018; and WHEREAS, The City Council has considered the petition and city staff reports pertaining to the annexation; and WHEREAS, On August 20, 2018, the City Council adopted Ordinance 118-____ annexing approximately 13.86 acres of land on the southeastern boundary of the City of Prior Lake to facilitate the extension of city services for the commercial/industrial development of the property; and WHEREAS, Minnesota Statutes requires publication of an Ordinance in the official newspaper before it becomes effective; and WHEREAS, WHEREAS, Minnesota Statutes also allows the publication of a summary of an ordinance if the City Council finds that the summary is an accurate representation of the Ordinance; and The City Council desires to publish a summary of the ordinance annexing PID 049060100, totaling approximately 13.86 acres in Credit River Township, and has determined the publication of a summary of this ordinance will meet the intent of the statute. 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. Ordinance No. 118-____ is lengthy. 3. The text of summary of Ordinance No. 118-____, attached hereto as Exhibit A, conforms to M.S. § 331A.01, Subd. 10, and is approved, and publication of the title and summary of the Ordinance will clearly inform the public of the intent and effect of the Ordinance. 4. The title and summary shall be published once in the Prior Lake American in a body type no smaller than brevier or eight-point type. 5. A complete text of the newly amended City Code will be available for inspection at City Hall or in the Document Center on the City of Prior Lake website after August 20, 2018. 2 Passed and adopted by the Prior Lake City Council this 20th day of August 2018 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager 3 Exhibit A SUMMARY ORDINANCE NO. 118-___ AN ORDINANCE OF THE CITY OF PRIOR LAKE, MINNESOTA ANNEXING LAND LOCATED IN CREDIT RIVER TOWNSHIP, SCOTT COUNTY, MINNESOTA PURSUANT TO MINNESOTA STATUTES § 414.033 SUBDIVISION 2(3), PERMITTING ANNEXATION BY ORDINANCE The following is only a summary of Ordinance No. 118-____. The full text will available for public inspection after August 20, 2018 by any person during regular office hours at City Hall or in the Document Center on the City of Prior Lake Website. SUMMARY: The corporate limits of the City of Prior Lake, Minnesota, are hereby extended to include the following described property, said land abutting the City of Prior Lake and being 120 acres or less in area, and is not presently served by public sewer facilities or public sewer facilities are not otherwise a vailable, and the City having received a petition for annexation from all the property owners of the land, to wit: The South 1391.13 feet of the West ½ of the Southwest ¼ of Section 6, Township 114, Range 21, Scott County, Minnesota lying West of the East 366.00 feet thereof, except the West 375.75 feet of the East 741.75 feet of the South 1391.13 feet of the West Half of the Southwest Quarter of Section 6, Township 114, Range 21, Scott County, Minnesota. (PID 049060100) This ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this 20th day of August 2018. ATTEST: _________________________ __________________________ Frank Boyles, City Manager Kirt Briggs, Mayor Summary Ordinance to be published in the Prior Lake American on the 25st day of August 2018. Location Map JPOwens, LLC Property 1 AGREEMENT FOR ANNEXATION OF JPOWENS, LLC PROPERTY CREDIT RIVER TOWNSHIP THIS AGREEMENT (“Agreement”) is entered into by and between JPOwens, LLC, a Minnesota limited liability company (“Owner”) and the City of Prior Lake, a Minnesota municipal corporation (“City”). RECITALS: WHEREAS, Owner is the fee owner of property in Credit River Township located at 6010 170th Street E, Prior Lake, MN 55372 and legally described on attached Exhibit A (“Property”). WHEREAS, Owner has filed a petition with the City requesting that the City annex the Property pursuant to Minn. Stat. 414.033, Subd. 2 (3). WHEREAS, the Property is located near the intersection of Highway 21, Highway 87 and 170th Street East and it is expected that the intersection will be re-constructed and possibly re-aligned within the next several years (“Intersection Project”). WHEREAS, the Property is located in the City’s wellhead protection district. WHEREAS, the City is willing to annex the Property upon Owner’s compliance with certain conditions as set forth in this Agreement relating to the Intersection Project and the development and use of the Property. WHEREAS, Owner agrees to comply with this Agreement and all conditions set forth herein. NOW THEREFORE, based on the mutual promises and covenants set forth herein, the sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Recitals. The Recitals set forth above are incorporated herein. 2 2. Right-of-Way Dedication. Owner shall execute and convey to the City the right- of-way easement attached as Exhibit B, prior to any sale, transfer, subdivision or change in use of the Property, including but not limited the following: use of the Property for anything other than one single-family residential lot; voluntary or involuntary sale or transfer; and transfer through estate or probate. If the Property is being platted at the time the easement is to be conveyed, the City may allow Owner to dedicate the right-of-way on the plat instead of by separate easement. Upon completion of the Intersection Project, the City shall convey back to the Owner any unneeded right-of-way. 3. Tax Increment Financing. The City may use tax increment financing (“TIF”) on the Property to help fund the Intersection Project. Owner agrees to cooperate with the City in relation to any TIF funding and acknowledges that any such TIF funding shall be used for the Intersection Project or as otherwise directed by the City. 4. Development and Use of Property. a. Owner acknowledges that the City does not intend to connect the Property to sewer and water until the Intersection Project is complete. City may agree, at the City’s sole discretion, to extend sewer and water before the Intersection Project is complete provided all utility extension costs, including street restoration, are the responsibility of the Owner. City hereby waives the one-year connection requirement set forth in City Code until the Intersection Project is complete. b. Owner acknowledges that the Property shall be developed only for commercial and/or industrial uses consistent with the Property’s location in the wellhead protection district. Any signage related to sale or development of the Property shall indicate the property shall be used for commercial or industrial uses. Any use or development of the Property shall be subject to all standard City review and approvals. 5. Annexation. Upon execution of this Agreement and the recording of the Agreement with the Scott County Recorder’s Office, City shall file an ordinance annexing the Property with the Chief Administrative Law Judge. 6. Indemnification and Hold Harmless. The Owner shall indemnify, defend and hold the City, its Council, agents, employees, attorneys and representatives harmless against and in respect of any and all claims, demands, actions, suits, proceedings, liens, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including interest, penalties, and attorneys’ fees, that the City incurs or suffers, which arise out of, result from or relate to the annexation of the Property or this Agreement. The responsibility to indemnify and hold the City harmless from claims arising out of or resulting from the actions or inactions of the City, its Council, agents, employees, and representatives does not extend to any willful or intentional misconduct on the part of any of these individuals. 3 7. Binding Effect. This Agreement shall run with the Property and bind and inure to the benefit of the parties hereto and their respective heirs, successors and assigns. 8. Severability. In the event any provisions of this Agreement shall be held invalid, illegal, or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof, and the remaining provisions shall not in any way be affected or impaired thereby. 9. Waiver. Failure of either party at any time to require performance of any provision of this Agreement shall not affect its right to require full performance thereof at any time thereafter and the waiver by either party of a breach of any such provision shall not be taken or held to be a waiver of any subsequent breach thereof or as nullifying the effectiveness of such provision. 10. Reimbursement of Fees and Costs. Any fees or costs incurred by the City associated with enforcing any of the terms and conditions set forth in this Agreement, including but not limited to City staff, engineering and attorney’s fees, shall be the sole responsibility of the Owner. The Owner agrees that if Owner fails to pay any invoiced amount within 30 days of receipt thereof, the City may assess the invoiced amount against the Property. 11. Governing Law. The laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations and performance obligations between the parties. The appropriate venue and jurisdiction for any litigation hereunder shall be those courts located within Scott County, Minnesota. Litigation, however, in the federal courts involving parties herein shall be in the appropriate federal court within the State of Minnesota. 12. Entire Agreement. This Agreement constitutes the final and complete agreement of the parties and shall supersede and replace any prior oral or written agreements between City and Owner. Any subsequent modification must be in writing signed by both parties. (Signatures Appear on Next Page) 4 IN WITNESS WHEREOF, the parties to this Agreement have hereunto set their hands as of the date set forth above. JPOwens, LLC By: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this ____ day of August 2018 by _________________________, the _______________________ of JPOwens, LLC a Minnesota limited liability company on behalf of the company. Notary Public 5 CITY OF PROIR LAKE By: Kirt Briggs Its: Mayor By: Frank Boyles Its: City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this ____ day of August 2018 by Kirt Briggs, Mayor and Frank Boyles, City Manager of the City of Prior Lake, a Minnesota municipal corporation on behalf of the corporation. Notary Public This Instrument Drafted By: Hoff Barry, P.A. 775 Prairie Center Drive, Suite 160 Eden Prairie, MN 55344 6 Exhibit A Legal Description of Property The South 1391.13 feet of the West ½ of the Southwest ¼ of Section 6, Township 114, Range 21, Scott County, Minnesota lying West of the East 366.00 feet thereof, except the West 375.75 feet of the East 741.75 feet of the South 1391.13 feet of the West Half of the Southwest Quarter of Section 6, Township 114, Range 21. (PID 049060100) 7 Exhibit B Right-of-Way Easement PERMANENT EASEMENT JPOwens, LLC, a Minnesota limited liability company (“Grantor”) hereby grants and conveys this ___ day of August, 2018 to the City of Prior Lake, a municipal corporation organized under the laws of the State of Minnesota (“Grantee”) a 66 foot wide permanent easement (“Easement”) as depicted on attached Exhibit B (“Easement Parcel”) for the following uses and purposes and subject to the following terms and conditions on, over, under and across a portion of the real property in the County of Scott, State of Minnesota legally described on attached Exhibit A (“Parcel”). 1. Uses and Purposes. The Easement shall be for right-of-way, drainage and utility purposes. Grantor hereby conveys all grasses, shrubs, trees and natural growth on the Easement Parcel. Grantee shall have the right to use and remove all earthen materials, structures, improvements and obstructions which lie within the boundaries of the Easement Parcel, including the right of clearing the Easement Parcel to allow for the use of the land as stated herein. The Easement includes the right of the Grantee, its contractors, agents, and employees to enter the Easement Parcel at all reasonable times for the purpose of locating, constructing, reconstructing, operating, maintaining, inspecting, altering and repairing within the Easement Parcel public right-of-way, drainage and utilities or other public facilities or improvements of any type that are not inconsistent with right-of-way, drainage and utility use. The Easement also includes the right to cut, trim, or remove from the Easement Parcel trees, shrubs, or other vegetation as in the Grantee's judgment unreasonably interfere with the Easement or facilities of the Grantee, its successors or assigns. 2. Nonexclusive. The Easement shall be nonexclusive; provided, however, this Easement shall be prior to and superior to any other easement hereinafter granted. Any future easement shall be subject to and subordinate to, and shall not interfere with, the Easement without the consent, in writing, of Grantee. 3. Duration of Easement. The Easement shall be perpetual, shall run with the land, shall be binding upon Grantor and its successors and assigns and shall be for the benefit of Grantee and its successors and assigns. 8 WITNESS WHEREOF, Grantor has caused these presents to be executed as of the day and year aforesaid. JPOwens, LLC Not for Signature By: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2018 by ________________ the _______________________ of JPOwens, LLC a Minnesota limited liability company on behalf of the company. __________________________________ Notary Public Drafted By: Hoff Barry, P.A. 775 Prairie Center Drive, Suite 160 Eden Prairie, MN 55344 9 EXHIBIT A Legal Description for Parcel The South 1391.13 feet of the West ½ of the Southwest ¼ of Section 6, Township 114, Range 21, Scott County, Minnesota lying West of the East 366.00 feet thereof, except the West 375.75 feet of the East 741.75 feet of the South 1391.13 feet of the West Half of the Southwest Quarter of Section 6, Township 114, Range 21. (PID 049060100) EXHIBIT B Easement Parcel 414.033 ANNEXATION BY ORDINANCE. Subdivision 1.Unincorporated property.Unincorporated property abutting a municipality may be annexed to the municipality by ordinance as provided for in this section. Subd. 2.Conditions.A municipal council may by ordinance declare land annexed to the municipality and any such land is deemed to be urban or suburban in character or about to become so if: (1) the land is owned by the municipality; (2) the land is completely surrounded by land within the municipal limits; (3) the land abuts the municipality and the area to be annexed is 120 acres or less, and the area to be annexedisnotpresentlyservedbypublicwastewaterfacilitiesorpublicwastewaterfacilitiesarenototherwise available, and the municipality receives a petition for annexation from all the property owners of the land. Exceptasprovidedforbyanorderlyannexationagreement,thisclausemaynotbeusedtoannexanyproperty contiguous to any property either simultaneously proposed to be or previously annexed under this clause within the preceding 12 months if the property is or has been owned at any point during that period by the same owners and annexation would cumulatively exceed 120 acres; or (4) the land has been approved after August 1, 1995, by a preliminary plat or final plat for subdivision to provide residential lots that average 21,780 square feet or less in area and the land is located within two miles of the municipal limits. Subd. 2a. [Repealed, 1997 c 202 art 5 s 9] Subd. 2b.Notice, hearing required.Before a municipality may adopt an ordinance under subdivision 2, clause (2), (3), or (4), a municipality must hold a public hearing and give 30 days' written notice by certified mail to the town or towns affected by the proposed ordinance and to all landowners within and contiguous to the area to be annexed. Subd. 3.60 percent bordered and 40 acres or less.If the perimeter of the area to be annexed by a municipality is 60 percent or more bordered by the municipality and if the area to be annexed is 40 acres or less, the municipality shall serve notice of intent to annex upon the town board and the chief administrative law judge, unless the area is appropriate for annexation by ordinance under subdivision 2, clause (3). The town board shall have 90 days from the date of service to serve objections with the chief administrative law judge.Ifnoobjectionsareforthcomingwithinthesaid90-dayperiod,suchlandmaybeannexedbyordinance. Ifobjectionsarefiledwiththechiefadministrativelawjudge,thechiefadministrativelawjudgeshallconduct hearings and issue an order as in the case of annexations under section 414.031, subdivisions 3 and 4. Subd. 4. [Repealed, 1978 c 705 s 33] Subd. 5.Petition by property owners; objections; procedure.If the land is platted, or, if unplatted, does not exceed 200 acres, a majority of the property owners in number may petition the municipal council to have such land included within the abutting municipality and, within ten days thereafter, shall file copies of the petition with the chief administrative law judge, the town board, the county board and the municipal council of any other municipality which borders the land to be annexed. Within 90 days from the date of service,thetownboardorthemunicipalcouncilofsuchabuttingmunicipalitymaysubmitwrittenobjections to the annexation to the chief administrative law judge and the annexing municipality. Upon receipt of such objections,thechiefadministrativelawjudgeshallproceedtoholdahearingandissueanorderinaccordance with section 414.031, subdivisions 3 and 4. If written objections are not submitted within the time specified in this section and if the municipal council determines that property proposed for the annexation is now or Copyright © 2017 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 414.033MINNESOTA STATUTES 20171 is about to become urban or suburban in character, it may by ordinance declare such land annexed to the municipality. If the petition is not signed by all the property owners of the land proposed to be annexed, the ordinance shall not be enacted until the municipal council has held a hearing on the proposed annexation after at least 30 days' mailed notice to all property owners within the area to be annexed. Subd. 6.If pending proceeding; waivers from parties.Whenever a proceeding for annexation is initiated under this section and all or any part of the land is included in another boundary adjustment proceeding pending before the chief administrative law judge, no action thereon shall be taken by the municipality, unless otherwise provided by an order of the chief administrative law judge, until final disposition has been made of the pending petition. Under this section, the chief administrative law judge will accept a waiver from all parties having a right to object, stating they have no objections to the proposed annexation and waiving the 90-day period before an annexation ordinance may be adopted. Subd. 7.Filing;effectivedate;copytoauditors.Anyannexationordinanceprovidedforinthissection must be filed with the chief administrative law judge, the township, the county auditor and the secretary of state and is final on the date the ordinance is approved by the chief administrative law judge. A copy of the annexation ordinance must be delivered immediately by the governing body of the municipality to the appropriate county auditors. Subd. 8. [Repealed, 1980 c 487 s 23] Subd. 9. [Repealed, 1997 c 87 s 4] Subd. 10.Chiefadministrativelawjudgemayrequireadditionalinformation.Thechiefadministrative lawjudgemayrequirethecityorpropertyownerstofurnishadditionalinformationconcerninganannexation byordinancetoinformthechiefadministrativelawjudgeabouttheextenttowhichtheproposedannexation conforms to the statutory criteria set forth in sections 414.01, subdivision 1, and 414.031, subdivision 4. Subd. 11.When annexed land is in floodplain or shoreland area.When a municipality declares land annexed to the municipality under subdivision 2, clause (3), and the land is within a designated floodplain, as provided by section 103F.111, subdivision 4, or a shoreland area, as provided by section 103F.205, subdivision 4, the municipality shall adopt or amend its land use controls to conform to chapter 103F, and any new development of the annexed land shall be subject to chapter 103F. Subd. 12.Property taxes.When a municipality annexes land under subdivision 2, clause (2), (3), or (4), property taxes payable on the annexed land shall continue to be paid to the affected town or towns for theyearinwhichtheannexationbecomeseffective.IftheannexationbecomeseffectiveonorbeforeAugust 1 of a levy year, the municipality may levy on the annexed area beginning with that same levy year. If the annexation becomes effective after August 1 of a levy year, the town may continue to levy on the annexed area for that levy year, and the municipality may not levy on the annexed area until the following levy year. Subd. 13.Electricutilityservicenotice;costimpact.Atleast30daysbeforeamunicipalitymayadopt an ordinance under subdivision 2, clause (2), (3), or (4), the petitioner must be notified by the municipality that the cost of electric utility service to the petitioner may change if the land is annexed to the municipality. The notice must include an estimate of the cost impact of any change in electric utility services, including rate changes and assessments, resulting from the annexation. History:1969 c 1146 s 12; 1975 c 271 s 6; 1978 c 705 s 15-21; 1979 c 50 s 52; 1985 c 30 s 2,3; 1991 c 291 art 12 s 24; 1992 c 556 s 5-8; 1994 c 511 s 4-8; 1996 c 303 s 13,14; 1997 c 31 art 3 s 14,15; 1997 c 202 art 5 s 3-5; 2002 c 223 s 8-12; 2006 c 270 art 2 s 8,9,13; 2007 c 90 s 2,3,5; 2008 c 196 art 2 s 15; 2008 c 277 art 1 s 98; 2014 c 220 s 3 Copyright © 2017 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 2MINNESOTA STATUTES 2017414.033