HomeMy WebLinkAbout05(H) - Resolution Approving a Public Property Use Permit to Allow Outdoor Seating on the Public Sidewalk Adjacent to 4636 Colorado St. SE Report
ITEM: 5H
CITY COUNCIL AGENDA REPORT
MEETING DATE: February 10, 2026
PREPARED BY: Casey McCabe, Community Development Director
PRESENTED BY: Casey McCabe
AGENDA ITEM: Resolution Approving a Public Property Use Permit to Allow Outdoor Seating on
the Public Sidewalk Adjacent to 4636 Colorado Street SE
RECOMMENDED ACTION:
Approval of a Resolution approving the Public Property Use Permit.
BACKGROUND:
The purpose of this agenda item is to consider approval of a resolution approving a Public Property
Use Permit (PPUP) to allow outdoor seating on the public sidewalk adjacent to Chula’s Mexican-Latin
Restaurant.
Current Circumstances
Chula’s will be opening a new restaurant in a portion of a new building at 4636 Colorado Street SE.
As part of the reconstruction of the former T-Shirts and More building, the developer removed and
expanded the sidewalk to create additional space for outdoor seating while maintaining adequate
space pedestrian navigation.
Chula’s is proposing to construct an outdoor eating area surrounded by temporary fencing and planter
boxes along the south side of the new building. The proposed outdoor seating would be located on a
public sidewalk along the north side of Colorado Street. For a business to utilize this area for seating,
the City Council must approve a Public Property Use Permit.
The proposed outdoor seating plan shows three tables; each table has seating for four. The designated
outdoor seating plan covers approximately 22’ 2” along the face of the building and extends
approximately 8’ 10” onto the public sidewalk; providing a minimum of 5’ 8” of navigable sidewalk area
between the curb and outdoor seating area.
When reviewing public property use permits, potential issues related to safe pedestrian travel on the
sidewalk, liability, insurance, maintenance, and trash removal are considered. The attached PPUP
was drafted to address these concerns.
If approved, the PPUP would be entered into by three parties; the City of Prior Lake, Chula’s Mexican-
Latin Restaurant, and Black Hills Properties, LLC, the property owner.
FINANCIAL IMPACT:
No financial impact is anticipated as a result of this action.
ALTERNATIVES:
1. Motion and Second, as part of the consent agenda, approving a resolution approving the
Public Property Use Permit and authorizing the City Manager to execute the agreement.
2. Remove this item from the consent agenda for additional discussion.
ATTACHMENTS:
1. General Location Map
2. Public Property Use Permit (with seating plan)
City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 26-___
RESOLUTION APPROVING A PUBLIC PROPERTY USE PERMIT TO ALLOW OUTDOOR
SEATING ON THE PUBLIC SIDEWALK ADJACENT TO 4636 COLORADO STREET SE
Motion By: Second By:
WHEREAS,
JMLM Restaurants Inc. is a tenant of property located at 4636 Colorado Street SE, Prior
Lake, Minnesota (the “Property”); and
WHEREAS, Black Hills Properties, LLC is the owner of the Property; and
WHEREAS, JMLM Restaurants Inc. has applied for a Public Property Use Permit to allow outdoor
seating on the public sidewalk adjacent to the Property; and
WHEREAS, the City of Prior Lake requires approval and execution of a Public Property Use Permit
prior to placement of private property on a public sidewalk; and
WHEREAS, on February 10, 2026, the Prior Lake City Council reviewed and approved the Public
Property Use Permit.
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 of Prior Lake authorizes the City Manager to execute the Public Property Use
Permit on behalf of the City.
th
PASSED AND ADOPTED THIS 10 DAY OF FEBRUARY 2026.
VOTE Briggs Braid Churchill Lake Hellier
Aye
☐ ☐ ☐ ☐ ☐
Nay
☐ ☐ ☐ ☐ ☐
Abstain
☐ ☐ ☐ ☐ ☐
Absent
☐ ☐ ☐ ☐ ☐
____________________________
Jason Wedel, City Manager
Attachment 1
General Location Map
4636 Colorado Street SE
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PUBLIC PROPERTY USE PERMIT
This Public Property Use Permit (“PPUP”) is entered into on this ____ day of _____________,
2026, by and between the City of Prior Lake, a Minnesota municipal corporation (the “City”),
JMLM Restaurants Inc., a Minnesota business corporation (the “Permittee”) and Black Hills
Properties, LLC, a Minnesota Limited Liability Company (the “Property Owner”).
RECITALS
WHEREAS, Permittee is a tenant of property located at 4636 Colorado Street SE, Prior Lake,
Minnesota (PID No. 250011020) (the “Property”); and
WHEREAS, Property Owner is owner of the Property; and
WHEREAS, Permittee has requested permission of City to add outdoor seating on the public
sidewalk along the south side of the Property; and
WHEREAS, City requires approval and execution of this PPUP prior to placement of the private
property on a public sidewalk; and
WHEREAS, Permittee has applied to the City for permission to place three tables on the
Colorado Street SE sidewalk, with each table having seating for four. The outdoor
seating plan identifies a minimum of five feet eight inches (5’ 8”) of navigable
sidewalk area between the curb and outdoor seating area.
AGREEMENT
In consideration of the foregoing Recitals, incorporated herein as if fully set forth, and the mutual
covenants herein, the parties agree as follows:
1. PUBLIC PROPERTY. Permittee and Property Owner acknowledge that the sidewalk adjacent
to the Property is public property which must remain open to the public for public use.
2. OUTDOOR SEATING PERMITTED. Subject to the terms of this PPUP and the City’s right to
terminate it as provided for elsewhere in this PPUP, the Permittee may use that portion of the
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public sidewalk area depicted on attached Exhibit A to place the outdoor tables and chairs,
fencing and planter boxes.
3. PEDESTRIAN USE OF SIDEWALK. The primary use of the public sidewalk is to provide
the public a safe location for pedestrian traffic. The use of the sidewalk for commercial uses is
subordinate to the publics’ use of the sidewalk for foot or chair travel. The Permittee shall
always maintain a minimum travel distance of five feet eight inches (5’ 8”) for foot and chair
travel. The Permittee shall be vigilant to observe whether the Outdoor Seating interferes with
pedestrian traffic; and if so, to remove or adjust the location of the Outdoor Seating. The City
may terminate this Permit, upon written notice to Permittee, if in the opinion of the Zoning
Administrator, the commercial use of the sidewalk (location of the Outdoor Seating) adversely
interferes with the publics’ right to travel on the sidewalk.
4. NO SMOKING. The Permittee and Property Owner shall ensure there is no smoking
permitted on the Outdoor Seating area.
5. INDEMNITY. The Permittee and Property 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 Outdoor Seating, including, but not
limited to, any claim asserted against the City as a result of the location allowed by the Permit.
The Permittee and Property Owner shall be jointly and severally liable for the obligations set
forth in this paragraph.
6. INSURANCE. Permittee shall maintain a general liability insurance policy which provides
coverage for damage to personal property and injury to persons in a minimum amount of
$1,000,000 per occurrence; $2,000,000 annual aggregate. The insurance requirements may be
met through any combination of primary and umbrella/excess insurance. Said policy shall
contain a clause which provides language stating that the company that issues the policy shall
not change, non-renew, or materially change the policy without first providing the City ten
(10) days prior written notice. The Permittee shall provide the City with a Certificate of
Insurance that names the City as an additional insured.
7. WAIVER OF CLAIMS. The Permittee and Property Owner acknowledge City’s ownership of
the sidewalk for the benefit of the public and knowingly and voluntarily waive and release any
and all claims against the City arising from, based on, or related to the use of the sidewalk as
permitted by this PPUP. The Permittee and Property Owner acknowledge that they were
advised that this is a legal document and that the Permittee and Property Owner should seek
legal counsel in connection with this PPUP and that the Permittee and Property Owner have
read and understand the terms of this PPUP.
8. CONDITION OF SIDEWALK. The Permittee and Property Owner acknowledge the City has
made no representations or warranties regarding the condition of the sidewalk or its suitability
for the uses permitted by this PPUP.
9. MAINTENANCE. Permittee and Property Owner acknowledge the City will not sweep or
remove snow from or around the Outdoor Seating while the Outdoor Seating is in place and
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Permittee and Property Owner further agree that sidewalk maintenance, including snow
removal and sweeping, on and around the Outdoor Seating shall be the responsibility of
Permittee and Property Owner. Permittee shall be diligent in ensuring the sidewalk area
remains clean and free of debris, including food and beverage spills.
10. SEASONAL OUTDOOR SEATING. This permit allows Permittee to place outdoor seating,
as depicted in Exhibit A, seasonally from April 15th to October 31st. Outdoor seating shall be
removed from the public sidewalk from November 1st to April 14th. In the event of snow or
other inclement weather between April 15th and October 31st, Permittee and Property Owner
acknowledge City will not sweep or remove snow from the Outdoor Seating area if the tables
and chairs are in place
11. TRASH. Permittee shall install trash bins in the outdoor seating area as necessary to ensure
Permittee customers are not utilizing City trash bins. Permittee shall be responsible for
emptying Permittee trash bins as necessary in Permittee’s dumpster. City is not responsible for
maintenance of trash that is generated from the Outdoor Seating Area; Permittee shall be
attentive to trash collection.
12. TERMINATION. This PPUP may be terminated by the City with written notice delivered to
the Permittee at the addresses written above. If the City terminates this Permit, the Permittee
shall have ten (10) days from receipt of the written notice to remove the Outdoor Seating. The
City may terminate this Permit, if in the opinion of the Zoning Administrator, the commercial
use of the sidewalk (location of the Outdoor Seating) adversely interferes with the publics’
right to travel on the sidewalks, the Outdoor Seating is considered a hazard or danger to the
public, the Outdoor Seating becomes deteriorated or damaged, the Outdoor Seating interferes
with maintenance or construction projects in the area, or for any other reason at the City’s sole
discretion.
13. BINDING EFFECT. Except as hereinafter provided, this PPUP shall run with the land and
bind and inure to the benefit of the parties hereto and their respective heirs, successors and
assigns.
14. ENTIRE AGREEMENT. This PPUP contains all the terms and conditions related to the
placement of a Outdoor Seating on the sidewalk adjacent to the Property and replaces any oral
agreements or other negotiations between the parties. No modifications of this PPUP shall be
valid until they have been placed in writing and signed by all parties hereto.
15. RECORDING. The Permittee shall cause this PPUP to be filed for record within 30 days of its
execution by all parties. Evidence of filing shall be provided to the City within 30 days
thereafter.
(Signature Pages Follow)
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CITY: City of Prior Lake
By:
Jason Wedel
Its: City Manager
STATE OF MINNESOTA )
) ss
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of , 2026,
by Jason Wedel, City Manager of the City of Prior Lake, Minnesota, a municipal corporation on
behalf of the corporation.
NOTARY PUBLIC
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PERMITTEE: JMLM Restaurants Inc.
By:
Manny Perez
Its: Chief Executive Officer
STATE OF MINNESOTA )
) ss
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of , 2026,
by Manny Perez, Chief Executive Officer of JMLM Restaurants Inc., a Minnesota business
corporation on behalf of the corporation.
NOTARY PUBLIC
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PROPERTY OWNER: Black Hills Properties, LLC
By:
Daniel J. Stanley
Its: Manager
STATE OF MINNESOTA )
) ss
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of , 2026,
by Daniel J. Stanley, as Manager of Black Hills Properties, LLC, a Minnesota Limited Liability
Company on behalf of the company.
NOTARY PUBLIC
DRAFTED BY:
City of Prior Lake
4646 Dakota Street SE
Prior Lake, MN 55372
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Exhibit A
Outdoor Seating Plan