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HomeMy WebLinkAbout9B - Deerfield Development CITY COUNCIL AGENDA REPORT DATE: AGENDA #: PREPARED BY: JUNE 15, 1998 9B GREG ILKKA, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER CONSIDER APPROVAL OF REQUEST TO RECONSIDER ISSUE OF EXTENSION OF ADELMANN STREET, STORM SEWER, WATER, AND SANITARY SEWER BY DEERFIELD DEVELOPMENT, INC. AGENDA ITEM: DISCUSSION: HISTORY At the May 4, 1998 Council meeting the Council considered a request by Deerfield Development to extend, at City cost, Adelmann Street and sewer and water to the plat line of Waterfront Passage Business Park. The agenda report for that meeting is attached to this report. CURRENT CIRCUMSTANCES The enclosed letter from Deerfield's attorney dated May 15, 1998, requests that the City Council reconsider its rejection of their request. The letter states that "it is the position of Deerfield Development LLC that the City or EDA, as the developer of the business park, should be required to comply with the provisions of the Prior Lake Subdivision Ordnance that require the extension of streets and utilities to the property line of the development." Further, the letter states "Section 6-6-2 of the Prior Lake Subdivision Ordinance expressly requires that streets provide for future connections to adjoining unsubdivided tracts." Because the Developer mistakenly perceives that the City has not complied with its own ordinance he feels the City Council should reconsider this issue. 162~~~eek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ISSUES The Developer's assertion that the City has not complied with its own subdivision ordinance is incorrect. At the time of the development of the Waterfront Passage Business Office Park the status of the Developer's property was unknown. The extension of Fish Point Road and the utilities therein to the southern boundary of the development demonstrates the City's compliance with the ordinance. The City consciously decided not to extend Adelmann Street and the utilities to the south boundary because: 1) There was no guarantee that the sewer and water could be extended to the Deerfield site, Le, MUSA extension; and 2) If the site had remained in the township there was some reluctance to allow access to this site through the City's. business park since the township development standards were unknown and the added traffic would reduce the road's lifespan. It is current staff's understanding that at the time, it was intended that if the property was annexed at some point in the future the cost of these extensions would be a development cost. The Developer's assertions as to whatever was represented to Deerfield representatives in connection with annexation of the property is not applicable to solely the 58 acre commercial portion. All discussions held centered around the entire 260 acre parcel. In the context of the entire 260 acre parcel "[s]ewer lines are in place along Prior Lake's borders adjacent to [Area 2]". All discussions were conceptual. Regarding the "various statements of policy and expressions of intention with respect to the availability of access and utilities to the boundaries", there were never any discussions as to at who's cost. CONCLUSION It seems clear that the City intentionally did not provide connections to street or utilities at Adelmann Street at the time of development of the business park. If the Developer now chooses to connect via this street it should be at his cost. ADELMESS.DOC FISCAL IMPACT: ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: ADELMESS.DOC If the Council does not change position on this issue there is no financial impact. The attached previous agenda report outlines the fiscal impact of other alternatives. The alternatives are as follows: 1. Deny Deerfield's request to pay the cost of extending Adelman Street, storm sewer, sanitary sewer, and water. 2. Agree to pay all or a portion of the cost of extending Adelman Street, storm sewer, sanitary sewer, and water. These alternatives are oultined in the attached previous agenda report. 3. Table this agenda item for a specific reason. Motion and second to deny Deerfield's request to pay the' cost of extending Adelman Street, storm sewer, sanitary sewer, and water. MAY 15 '98 03:16PM HUEMOELLER & BATES P.2/4 HUEMOEllER & BATES ATTORNEYS AT LAW 1"70 FRANICUN TRAIL POST OFFIC( BOX 67 PRIOR U\lCE. MINNESOTA ::15:17.1 lAMES O. SATEs BRYCE D. HUEMOELLEA May 15, 1998 TeLl. . (612) U7.;lIl1 Telea.pi<< (612) 447-5621 Prior Lake City Council 16200 Eagle Creek Avenue Prior Lake, MN 55372 Re: Proposed Commercial Development of Deerfield Development LLC Gentlemen: By letter dated April 15, Deerfield Development LLC requested that the City extend, at its expense, Adelmann Street and the sanitary sewer, watermain and other public utilities within its right of way from the intersection of Cottonwood Lane to the north boundary of the adjacent 58 acre parcel owned by Deerfield that is proposed for development as a business park. This request was considered and rejected by the City Council on May 1. I am now writing to request that the City Council reconsider its rejection for the following reasons: 1. Adelmann Street and the sanirary sewer, watermain and ower public utilities within its right of way were installed by The City of Prior Lake or its Economic Development Authority in connection with the development of the Waterfront Passage Business Park. Since the business park was essentially a commercial land subdivision for which the developer was the City or the EDA, it is the position of Decrfield Development LLC that the City or EDA, as the developer of the business park, should be required to comply with the provisions of the Prior Lake Subdivision Ordinance (PLSO) that require the extension of streets and utilities to Ibe property line of the development. 2. Section 6-6-2 of the Prior Lake Subdivision Ordinance expressly requires that streets provide for future connections to adjoining unsubdividcd tracts. I'... streets shall connect with existing or dedicated streets in adjoining subdivisions or provide for future connections to adjoining unsubdivided tracts or shall be a reasonable projection of streetS in the nearest subdivision. Streets shall be designed and located in relationship " )r~"liI,q~" jI' '\II! ~~"'F_""'_''1Mltt' ".. "~_"'T " ~ ~'. MAY 15 '98 03:17PM HUEMOELLER & BATES P.3/4 Prior Lake City Council - Page 2 May 14, 1998 to existing and planned streets. Such design shall minimize the negative affect on the environment and on public convenience and safety." PLSO ~6-6-2(A). IIReserve strips controlling access to streets shall be prohibited except under conditions approved by the Council." PLSO ~6-6-2(H). "The street arrangements shall not be such as to cause hardship to owners of adjoining property in platting their own land and providing convenient access to it." PLSO ~6-6-2(J). The Prior Lake Subdivision Ordinance also expressly requires that watermains shall be run to the boundary of the subdivision. "Service connections shall be stubbed to the property lines and fife hydrarits shall be provided as required by the City Engineer." PLSO ~6~7-8. The sanitary sewer system must be designed so as to be interconnected with the public system. "Sanitary sewer mains and service connections shall be installed to serve all lots and interconnected with the public system." PLSO ~6-7-9. It is inconceivable that the City would allow any private developer to design a subdivision which does not extend streets and utilities to the property lines to facilitate the connection of adjacent undeveloped land to public utilities. Consequently, the City should be held to the same standards when it develops its own projects. The Prior Lake 2010 Comprehensive Plan affirms the policy of requiring the extension of utilities to the perimeter of subdivisions I In Chapter 7 of the Plan entitled Il Sanitary Sewers", the fmal recommendation on page 288 of the Plan contains a specific recommendation calling for the extension of trunk sewer lines lito the City limits" capable of providing sewer service to the orderly annexation area. The S8 acre parcel was, of course, a part of the orderly annexation area until it was recently annexed into the City. In connection with that annexation there were numerous discussions and representations by City staff and council members, and Deerfield's representatives, that MAY 15 '98 03:17PM HUEMOELLER & BATES P.4/4 Prior Lake City Council Page 3 May 14, 1998 utilities were available at the property line to permit the immediate development of Deerfield's commercial property as soon as it could be rezoned. In fact, the Aprl14, 1997 Annexation Task Force Memorandum expressly noted that "[slewer lines are in place along Prior Lake's borders adjacent to [Area 2]". As noted in the Task Force Memorandum, the cost of oversizing the trunk sewer and water is the City.s responsibility. so the discussion of cost extends to only a portion of these utility lines. Since the City will not allow the 58 acre parcel to be connected to Fish Point Road, the parcel is effectively without access to City streets and utilities, unless the City extends Adelmann Street and the utilities within its right of way to the property line. Since Deerfield has in good faith relied on these various statements of policy and expressions of intention with respect to the availability of access and utilities to the boundaries of the 58 acre parcel and has, through annexation of the parcel and relinquishment of the plat approval by the Orderly Annexation Board. made a substantial change in position, it would be highly inequitable and unjust for the City Council to now refuse to extend public streets and utilities to the parcel. Accordingly, Deerfield Development LLC requests that based on the policies set form in the City's Subdivision Ordinance and Comprehensive Plan, and the positions expressed to Deerfield (to induce annexation of the 58 acre parcel) and the public, the City Council reconsider its refusal to extend Adelmann Street and the sanitary sewer, warermain and other public utilities within its right of way to the north boundary of the Deemeld parcel. Sincerely yours, ~ ,~~~~ tr-(j ~~ Bryce D. Huemoeller BDH:jd cc: Deerfield Development LLC Prior Lake Economic Development Authority r., .1-. ':J._,,~i'--- ~~".~,", .:", :4 .a"JI.,l_"::..~:~;;..::":r...a:;:;~ II' J. ' , ,,' ..~;. r~~- '"'_~ ... ..s. :: ,:~ I.~ ~ MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT MAY 4,1998 0 10C \ FRANK BOYLES, CITY MANAGE:\'\. CONSIDER APPROVAL OF REQUEST BY DEERFIELD DEVELOPMENT TO EXTEND ADELMANN STREET, SANITARY AND STORM SEWER AND WATER TO THE PLAT BOUNDARY OF WATERFRONT PASSAGE BUSINESS PARK. Historv: Developers in Prior Lake are required to extend utilities to the . boundaries of their plat. In the case of Waterfront Passage, the City was the developer. .. The 35 acre Waterfront Passage Business Park was acquired by the City in 1993 through contract for deed. In 1994 the site was graded and streets, water and sewer were installed. Sewer and water was installed under Fish Point Road to the southern boundary of the plat, as well as under Cottonwood and Adelmann to serve the parcels in the business park. At the time the business park was acquired, the likelihood of successful annexation of the Deerfield Property was speculation although the property is within this orderly annexation area. The Township viewed all or part of the Deerfield parcel as their business park. The City decided not to extend Adelmann Street and the utilities underneath it to the south boundary because: 1) There was no guarantee that sewer and water could be extended to the Deerfield site 2) If the site remained in the township there was some reluctance to allow access to this site through the City's business park since the township development standards were unknown and added traffic would reduce the road's lifespan. Current Circumstances: The extension ofFish Point Road and the utilities beneath it could serve much of the residential development expected in the 260 acre parcel. The 58 acres reserved for business park development require 162Q~~$~AhiOO@ke, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER HUEMOELLER & BATES ATTORNEYS AT LAW 16670 FAANKUN TRAIL POST OFFICE BOX 67 PRIOR LAKE, MINNESOTA 55372 JAMES D. BATES BRYCE D. HUEMOELLER April 15, 1998 Telephone (612) 447.2131 Telecopier (612) 447.5628 Prior Lake City Council 16200 Eagle Creek Avenue Prior Lake, MN 55372 Re: Proposed Commercial Development of Deerfield Development LLC Gentlemen: Deerfield Development LLC is the owner of a 58 acre parcel of land, which the City has designated as "Commercial Business Office Park" with a "B-P" zoning classification in a comprehensive plan amendment that was recently approved by the Metropolitan Council. The location of the 58 acre parcel of land is shown on the attached exhibit that is attached to this letter. Deerfield intends to begin development of the business park as soon as possible, and proposes to start construction of the required subdivision improvements by mid summer of 1998. Rather than petition the City for installation of public streets and utilities within the business park, Deerfield desires to arrange for, finance and install the required improvements, provided the City agrees to concurrently extend at the City's expense Adelmann Street and the sanitary sewer, watermain and other public utilities within its right-of-way from its intersection with Cottonwood Lane to the north boundary of the 58 acre parcel. By financing and constructing the needed subdivision improvements itself, Deerfield hopes to avoid the delays resulting from incorporating the business park in the City's 1999 Capital Improvement Budget and continue the current momentum in business development that has been generated by the Waterfront Passage Business Park. l Prior Lake City Council Page 2 April 15, 1998 John Mesenbrink and Larry Gensmer, the owners of Deerfield Development LLC, would appreciate the opportunity to appear at the next City Council meeting to discuss the the project and the extension of Adelmann Street. Sincerely yours, !~. Bryce D. Huemoeller BDH:ab cc: Deerfield Development LLC ---. . . I ~~\\ ?, \ (" (' ~, i lJ ~@, L.! 1---; , ,---= :Ii: ,. \ \, ~ N~' 't\ '/ _,' 'J/ 'I I :--:n : ""Illil~"'" ?'^'~ ,'-6 j ~ .~~ I : l' : ~ . i I \ I >/."..... " "'V' I / ~ I ',- ,'7~ I i! '1 :,,"" " \', (, '.1, '" '~'~"'" ", , I:"....\. \ I. .' '-.j ~r ~ ( '>. <~ ,,'i\ 1 I;~. C"y ,.,,' ~~~s , \~si ~ ' I i ~~Q\oJ\lt-'O? 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V"\ l\ SITEWORK 1 MOBILIZATION LS 1 $ 2,500.00 $ 2,500.00 2 COMMON EXCAVATION CY 1275 $ 6.00 $ 7,650.00 3 SUBGRADE EXCAVATION CY 175 $ 8.00 $ 1,400.00 4 TOPSOIL BORROW CY 115 $ 10.00 $ 1,150.00 5 SUBGRADE PREPARATION SY 1300 $ 0.35 $ 455.00 6 AGGREGATE BASE, CLASS 5 TON 530 $ 8.50 $ 4,505.00 7 CONCRETE CURB & GUTTER, B618 LF 700 $ 7.00 $ 4,900.00 8 3" BIT BASE TYPE 31 TON 165 $ 24.00 $ 3,960.00 9 1.5" BIT WEAR TYPE 41 B TON 85 $ 26.00 S 2,210.00 10 TACK MATERIAL GAL 50 $ 1.30 S 65.00 11 SODDING, LAWN & BOULEVARD SY 150 $ 2.00 $ 300.00 12 SILT FENCE, HEAVY DlTTY LF 700 $ 1.25 $ 875.00 13 REMOVE CONCRETE CURB LF 50 $ 4.00 $ 200.00 ":.. 14 SAW CUT EXISTING PAVEMENT LF 30 $ 4.00 $ 1.20.00 T SITEWORK SUBTOTAL $ 30,290.00 SANITARY SEWER 15 CONNECT TO EXISTING EA 1 S 1,000.00 $ 1,000.00 16 10" PVC SewER SDR 35 (0-8') DEEP LF 335 S 17.00 $ 5,695.00 17 48" DIAMETER SANITARY SEWER MANHOLE EA 2 S 1,300.00 $ ?,600.00 18 6" PVC SERVICE PIPE LF 35 S 12.00 S 420.00 19 CLEAN OUT LS 1 $ 1,000.00 $ 1,000.00 20 DEWATERING LS 1 $ 1,000.00 $ 1,000.00 T SANITARY SEWER SUBTOTAL $ 11,715.00 WA TERMAIN 21 CONNECT TO EXISTING EA 1 $ 1,800.00 $ 1,800.00 22 12" DIP LF 335 $ 25.00 $ 8,375.00 23 FITTINGS LBS 1000 $ 1.10 $ 1.100.00 24 HYDRANT WITH 6" VALVE EA 1 $ 1,750.00 $ 1,750.00 25 6" DIP LF 35 $ 18.00 $ 630.00 26 6"GATEVALVE EA 1 $ 475.00 $ ,. 475.00 27 DEWATERING LS 1 $ 2,000.00 $ 2,000.00 T WA TERMAIN SUBTOTAL $ 16,130.00 ADlEMANN.XlS Page 1 , $ '69,156.00. 10% CONTINGENCY $ 6,915.60 cr 7~.07V - ADLEMANN.xLS Page 2 ~, "'~.'." 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