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Home My WebLink About05(L) - Resolution Approving an Application for the Sewer and Water Fee Deferral Program Report DEFERRED PAYMENT AGREEMENT This Deferred Payment Agreement (“Agreement”) is entered into this ____ day of _____________, 2025 by and between the City of Prior Lake, a Minnesota municipal corporation with an address of 4646 Dakota Ave SE, Prior Lake, MN 55372 (“City”), YT’s Garage, LLC, a Minnesota limited liability company with an address of 16309 Main Avenue SE, Prior Lake, MN 55372 (“Operator”), and Carol R. Johnson and her successors in trust, as Trustee of the Carol Rae Johnson Revocable Trust under Agreement dated December 14, 2017, as amended (“Owner”). WHEREAS, the Operator proposes to operate a bar and restaurant (“Restaurant”) on property located at 16309 Main Avenue SE, Prior Lake, Minnesota (“Property”) and legally described as follows: That part of Lots 1 and 2, Block 1, Cates Addition to the Village of Prior Lake, Scott County, Minnesota described as follows: Beginning at the northwest comer of said Lot 1; thence southwesterly along the westerly line of said Lots 1 and 2 to a point distant 2.35 feet southerly of the northwest corner of said Lot 2; thence southeasterly to a point on the easterly line of said Lot 2 distant 31.10 feet southerly of the northeast comer of said Lot 2; thence northerly along said easterly line to the northeast comer of said Lot 2; thence continuing northerly along the easterly line of said Lot 1 a distance of 40.00 feet; thence northwesterly to the point of beginning. (PID 250020020); and WHEREAS, Owner is the fee owner of the Property; and WHEREAS, the Owner is subject to charges for sewer and water from the Metropolitan Council Environmental Services Division (“MCES”) and the City. The charges are based on Sewer Availability Charge (“SAC”) units; and WHEREAS, MCES has assessed the Restaurant regarding SAC units and has determined that the Property shall be charged nine (9) SAC units; and WHEREAS, City Code Section 8-129 allows qualified property owners to defer the payment of sanitary sewer and water connection charges pursuant to the City’s deferral policy; and WHEREAS, Owner and Operator seek to have the water and sewer fees owed for the Restaurant deferred. NOW THEREFORE, BASED ON THE FOREGOING, the parties hereby agree as follows: 1. Recitals. The recitals set forth above are incorporated herein as if fully set forth. 2. Fees. The Owner is responsible for the following fees in relation to the establishment of the Restaurant on the Property: Fee Per Unit Total (9 SAC Units) 20% Payment w/Building Permit Balance Met Council SAC $2,485 $22,365 $4,473 $17,892 City Sewer Connection $1,227 $11,043 $2,208.60 $8,834.40 City Water Connection $876 $7,884 $1,576.80 $6,307.20 Total $4,588 $41,292 $8,258.40 $33,033.60 3. Payment of Fees. Owner, or Operator on behalf of Owner, shall pay to City all fees set forth in Paragraph 2, including interest, according to the following schedule: a. Initial Payment. $8,258.40 due at the time of issuance of a building permit. b. Deferral Payments. $33,033.60 with interest at an annual rate of 2.12% due in equal monthly payments of $580.74 over 60 months. Interest shall begin accruing on June 1, 2025. The first monthly payment shall be due on July 1, 2025. All future payments shall be due on the 1st day of each month in lawful money of the United States to City at its office: City of Prior Lake, Attn: Finance Department, 4646 Dakota Street SE, Prior Lake, MN 55372, until the fees and interest are paid in full. The final monthly payment shall be due on June 1, 2030. The final monthly payment shall consist of any and all amounts remaining due under this Agreement. If the City has not received the full payment described in Paragraph 3 by the end of ten (10) calendar days after the payment is due, the City may collect a late charge in the amount of ten percent (10%) of the overdue amount of such payment. c. Prepayment. The amounts due under this Agreement may be prepaid without penalty. Interest shall accrue on the balance due at the rate set forth above up and to the date all amounts due under this Agreement are paid in full. 4. Recalculation of Credits. In the event the SAC units for the Property change for any reason after execution of this Agreement, any new fees assessed shall be due and payable pursuant to the City Code and shall not be subject to this Agreement. 5. Sale or Transfer of Property. If the Property is sold or transferred to any other party, any balance remaining due under this Agreement, including interest, shall become immediately due and payable without demand or notice by the City. Owner must notify City in writing at least thirty days prior to any such sale or transfer. 6. Default. “Default” shall mean the failure to make payments pursuant to the terms herein or any other breach of this Agreement and failure to cure said default within ten days of the mailing of written notice by City to Owner and Operator by United States Mail. 7. Remedy. Upon Default, any balance remaining due under this Agreement, including interest, shall become immediately due and payable without demand or notice by the City. In addition, Owner and Operator agree that the full balance due, including interest and any applicable collection or administrative costs incurred by the City, may be certified to the taxes on the Property pursuant to Minn. Stat. 444.075 or any other applicable law. Owner and Operator waive any and all procedures related to certifying amounts due to the Property’s taxes including but not limited to notice, hearing and appeal of the assessment. 8. Costs of Collection. To the extent permitted by law, Owner and Operator agree to pay all costs of collection, including reasonable attorneys’ fees and legal expenses, incurred by the City in collection of any amounts due herein. 9. Notices. Notices to be given under this Agreement shall be given by enclosing the same in a sealed envelope, postage prepaid and deposited in the U.S. Postal Service, addressed to the parties as listed above. 10. Assignment. None of the parties shall assign this Agreement, nor any interest arising herein, without the written consent of the other parties. 11. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota. 12. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Agreement. 13. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 14. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be considered an original. IN WITNESS WHEREOF, this Agreement has been executed as of the day and year first above written. [Remainder of Page Intentionally Left Blank. Signature Pages Follow.] City of Prior Lake By: Kirt Briggs Its: Mayor By: Jason Wedel Its: City Manager STATE OF MINNESOTA ) (ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this ____ day of , 2025, by Kirt Briggs and Jason Wedel, the Mayor and City Manager, respectively, of the City of Prior Lake, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. __________________________________________ Notary Public YT’s Garage, LLC By: Cynthia K. Boegeman Its: STATE OF MINNESOTA ) (ss. COUNTY OF ) The foregoing instrument was acknowledged before me this ______ day of , 2025, by Cynthia K. Boegeman, the ____________________________ of YT’s Garage, LLC on behalf of the Operator. __________________________________________ Notary Public Carol R. Johnson and her successors in trust, as Trustee of the Carol Rae Johnson Revocable Trust under Agreement dated December 14, 2017, as amended By: Carol R. Johnson Its: Trustee STATE OF MINNESOTA ) (ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _____ day of , 2025, by Carol R. Johnson, as Trustee of the Carol Rae Johnson Revocable Trust under Agreement dated December 14, 2017, as amended on behalf of the Owner. __________________________________________ Notary Public DRAFTED BY: City of Prior Lake 4646 Dakota Street SE Prior Lake, MN 55372