HomeMy WebLinkAbout6 - Annexation Agreement - Prior Lake & Spring Lake
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AGENDA NUMBER:
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
BACKGROUND:
"CELEBRATE PRIOR LAKE'S CENTENNIAL - 1991"
6
HORST
JOINT
PRIOR
APRIL
GRASER, DIRECTOR OF PLANNING
ORDERLY ANNEXATION AGREEMENT
LAKE AND SPRING LAKE TOWNSHIP
1, 1991
BETWEEN
On March 18, 1991, the Prior Lake City
council ado~ted Resolution 91-13, supporting
the annexat10n of about 70 acres of Spring
Lake Township together with a direction to
Staff to continue to work with Spring Lake
Township to reach an amended orderly
annexation agreement which could be mutually
supported by both governments.
Prior Lake Staff together with Barb Johnson
and Clarence Kaiser of the Township Board have
negotiated a draft resolution for the orderly
annexation of the subject site (attached).
Both Prior Lake and Spring Lake Township must
adopt a joint resolution in order for the
Minnesota Municipal Commission to act in a
timely fashion. Failure to reach a joint
agreement will necessitate the Municipal
Commission to subject the annexation to the
formal hearing process possibly delaying the
annexation by two years. Furthermore, the
Council is asked to consider the proposed
contractual obligation with New Century
Construction which were ne~otiated with Tim
Keane, Attorney for the pet1tioner.
New Century Construction has filed a petition
to detach about 70 acres of vacant land from
spring Lake Township and annex it into Prior
Lake. The application has been processed in
accordance with Prior Lake's Annexation
Process. In general, the Council and Planning
commission found that the proposed annexation
would be positive for the community and
subject area. The existing "Orderly
Annexation Agreement" was the foundation on
which the petition was based. However, spring
Lake Township held that the 1972 Orderly
Annexation Agreement was outdated and in need
of revision. To expedite the process, Prior
Lake and Spring Lake agreed to negotiate an
amended joint resolution for the subject site
only. If an agreement is reached with spring
Lake Township and New Century Construction,
development could begin late this year.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
An Equal Opportunity / Affirmative Action Employer
DISCUSSION:
The amendment to the original Orderly
Annexation Agreement was initially drafted by
Roger Knutson, Attorney for Spring Lake
Township and redrafted as to form for the
Municipal Commission by Glen Kessel, Attorney
for the City of Prior Lake. The agreement
resolves five points. Items 1 and 2 simply
state that the subject property will be
detached from Spring Lake Township in
accordance to the new agreement.
Item 3 will require Prior Lake to reimburse
the township for taxes lost over a six year
period. The township feels compelled to
recover these taxes which would have otherwise
been generated by a 2.5 acre development
consisting of 30 lots which is the township
density for the subject property. The
schedule in item 3 sets forth percentages of
Prior Lake's portion of the gross property tax
to be reimbursed to spring Lake Township at
the end of each calendar year. The amount of
taxes generated will vary according to the
value of the homes and the number of homes
built between 1992 and 1995. Preliminary
estimates indicate total payment in lieu of
taxes range from $7000 - 12,000.
Item 4 deals with the maintenance and paving
of Mushtown Road from the southern terminus of
the subject site north to the City limits (see
attached map). It obligates Prior Lake for
all maintenance with the exception of grading
which will be performed by Spring Lake
Township for the unimproved portion of
Mushtown Road. Before any road or driveway
connection is made from the subject site the
entire portion of Mushtown Road must be
overlaid to a standard as determined by Prior
Lake. Approximately 1000 feet of Mushtown
Road is currently overlaid with bituminous and
should be exempt from additional overlays.
The paved section lies directly south of the
City limits. The cost for overlays or
improvements to Mushtown Road would be shared
by New Century Construction, Prior Lake, and
spring Lake Township in the following manner:
Prior Lake would defer all costs attributable
to Spring lake Township for a five year period
following the improvement(s). In the event
that the section of Mushtown Road lying north
of the subject site is annexed to Prior Lake
within the five year period, no reimbursement
to Spring Lake Township is due. However,
under no circumstances can the amount of the
reimbursement exceed the amount of the taxes
Spring Lake Township receives pursuant to
paragraph 2 of the amended Orderly Annexation
Agreement. The financial arrangement with New
Century Construction will be dealt with in a
separate contract.
Item 4 requires Prior Lake to reimburse spring
Lake Township for ex~enses in an amount not to
exceed $1500.00. Th1s expense in addition to
the processing cost incurred by Prior Lake
will be charged back to New Century
Construction.
The second agreement the Council will need to
consider is between Prior Lake and New Century
Construction. For mutual covenants and
considerations New Century Construction should
be responsible for:
1. All of the improvements of Mushtown Road
to be completed as required by the
amended orderly annexation agreement with
last phase of the development. Staff is
suggesting New Century Construction be
responsible for the entire cost of
Mushtown Road within the plat less
design engineering costs and soil borings
since New Century Construction is solely
responsible for Mushtown Road becoming
part of the City. The principle reason
staff has suggested New Century pay for
the entire roadway is because it would be
impossible to assess half of the roadway
to any lands outside the city limits.
However, the City Council may wish to
consider the range of cost participation
perhaps up to one half of the roadway.
The estimated construction cost of the
roadway is about $100,000.00.
2. For costs incurred in the processing of
the annexation petition. This shall
include Spring Lake Township and Prior
Lake costs.
3. Prior Lake's obligation for payment in
lieu of taxes to Spring Lake Township.
Staff has had numerous meetings with spring
Lake Township and New Century Construction
during which all the elements of both
agreements were discussed in detail. The
agreements as drafted and attached for your
review reflect current and lon9 range mutual
benefits for all parties 1nvolved. All
parties have reached a tentative consensus on
the proposed agreements and request the
Council to adopt them.
Although there
parties, New
is a consensus between the
Century Construction will
ALTERNATIVES:
RECOMMENDATION:
ACTION REQUIRED:
formally request the Council to
and/or commit to a 50% cost
improvements to Mushtown Road
subject site.
participate
share for
within the
1.
Approve the agreements as presented.
2. Approve the agreements with amendments
based on discussion.
3. Deny the agreements for specific reasons.
Alternative number 1
Depends on discussion.
The attached amended orderly annexation
agreement only includes half of Mushtown Road.
Staff will have an amended legal description
available for the meeting.
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MUSHTOWN ROAD NPROVEMENT MAP
N 1/2
SEC.
T: 114 R. 22
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~-27-1991 13:29 FR01 LCtV'EN-I'EL~.I'PLS
RS TO
94474245
P.02
AMENDMENT TO ORDERLY ANNEXATION AGREEMENT
THIS AGREEMENT made as of thi8 day of
1991, by and between the City of Prior Lake, a Minnesota
municipal corporation ("City") and Spring Lake Township, a
Minnesota political subdivision ("TownShip").
RECITALS
,
WHEREAS, City and Township are parties to a Joint Resolution
as to Orderly Annexation dated November 20, 1972 ("Existing
Agreement"), and
WHEREAS, City and Township desire to amend said Existing
Agreement only as it applies to the following described property
("Subject Property"):
That part of the West half of the Northeast Quarter of
Section 11, Township 114, Range 22, lYing Northeasterly
of the center line of Mushtown Road, Scott County,
Minnesota, consisting of approximately 69.82 acres (see
Annexation Site attached hereto as Exhibit "A"),
NOW, THEREFORE, the parties agree as follows:
1. The parties agree that the Subject Property shall be
detached from the Township and annexed by the City pursuant to a
Joint Resolution attached hereto and incorporated herein as
Exhibit "B".
2. The real estate taxes payable on the Subject Property
in 1991 shall be retained by the Township. In future rears, on
or before December 31 of each year, the City shall re~mburse the
Township the taxes, together with penalties and interest for
delinquent taxes subsequently paid, the City receives from the
Subject Property in accordance with the following schedule:
A. Taxes payable in 1992 20%
B. Taxes payable in 1993 17%
C. Taxes payable in 1994 14%
D. Taxes payable in 1995 10%
E. Taxes payable in 1996 8%
F. Taxes payable in 1997 4%
G. Taxes payable in 1998 0%
and subsequent years
3. The City shall maintain, at no cost to the Township,
the segment of Mushtown Road contain~d in the North half of
Section 11, Township 114, Range 22. Maintenance includes, but is
not limited to, tree trimming, surfacing with crushed limestone,
signing and dust control. The Township shall, however, be
responsible for grading. Before the City allows any driveways or
street access from the Subject Property onto Mushtown Road, the
City shall overlay that part of Mushtown Road described above
with a bituminous surface. The Township shall reimburse the City
its cost to overlay that section of Mushtown Road in the
Township. The payment to the City shall be due, without
MAR-2E>-1991 11: ()E> FROt1 LiJMt1EN-NELSON. MPLS
F"; TO
9447424';.
P.04
interest, five years after the overlay has been completed. If,
however, the City annexes that se~ent of roadway into the City
before the reimbursement payment LS due, no reimbursement shall
be required. The required reimbursement, if any, shall not
exceed the amount of taxes the Township receives pursuant to
Paragraph 2 of this A9reement.
4. Within 30 days after both parties have signed this
Amendment, the City shall reimburse the Township its costs
incurred in negotiating this Amendment in an amount not to
exceed $1,500 (said sum including the Township's attorneys' fees
incurred) .
5. Except as herein specifically provided, all other
terms, conditions and/or provisions of the Existing Agreement
remain in full force and effect.
CITY OF PRIOR LAKE
By
Its Mayor
By
Its City Manager
SPRING LAKE TOWNSHIP
By
Its Cnairperson
By
Its Clerk
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STATE OF MINNESOTA )
) S8.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this
day of , 1991, by Lydia Andren and David
Unmacht, respectively the Mayor and City Manager 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.
NotaI:Y Public
STATE OF MINNESOTA
COUNTY OF SCOTT
ss.
The foregoing instrument was aCKnowledged before me this
day of , 1991, by
ana-Barbara Kane Johnson, respectively-- the Chairperson and Clerk
of Spring Lake Township, a Minnesota political subdivision, on
its behalf and pursuant to authority granted by its Town Board.
Notary Public
Drafted By:
Lommen, Nelson, Cole & Stageberg, P.A.
1800 IDS Center
Minneapolis, Minnesota 55402
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EXHIBIT A
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ORDERL Y ANNE)c A TION AREA
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LAXE
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EXHIBIT "B"
IN THE MATTER OF THE AMENDMENT TO THE
JOINT RESOLUTION FOR ORDERLY ANNEXATION
BETWEEN THE CITY OF PRIOR LAKE
AND SPRING LAKE TOWNSHIP, MINNESOTA
PURSUANT TO MINNESOTA STATUTES 414.0325, SUED. 1
TO: Minnesota Municipal Board
165 Metro 59uare Building
St. Paul, M~nnesota 55101
Pursuant to an Amendment to Joint Resolution as to Orderly
Annexation between the City of Prior Lake (trCity")and Spring
Lake Township ("Township"), the City and the Township hereby
jointly agree that the Joint Resolution as to Orderly Annexation
between the Cit~ and the Township be amended with respect to the
following descr~bed property, to include the following:
Both the City and the Township agree that no alteration
of the stateo boundaries of the Joint Resolution as to
Orderly Annexation between the parties dated November
20, 1972 is appropriate. Furthermore, both parties have
entered into an Amendment to the existing Agreement
made as of , 1991. Both parties agree
that no consideration by the Minnesota Municipal Board
( "Board") is necessary. Upon receipt of this
Resolution, the Board may review and comment, but
shall, within 30 days, order the annexation of the
followIng described property in accordance with the
terms of the amendment to the Joint Resolution:
That part of the West half of the Northeast Quarter of
Section 11, Township 114, Range 22, lying Northeasterly
of the center line of Mushtown Road, Scott County,
Minnesota, consisting of approxim~tely 69.82 acres.
Approved by the City of Prior Lake this day of
1991.
,
Mayor
City Manager
Approved by Spring Lake Township this ____ day of
1991.
Chairperson
Clerk
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AGREF;~EN_'1'
THIS AGREEMENT made as of the day of
by and between the City of Prior L~e; a Minnesota
corporation ("City") and New Century Constructi<.m,
Minnesota corporation ("New Century").
RECITALS
WHEREAS, New Century is the fee own~r of certain real
property located in Spring Lake Township ("Townshi.p") described
as follows (" Prl)perty" ) :
, 1 991 I
municfpal
Inc., a
That part of the We~t half of the Northeast
Quarter of Section 11, Township 114, Range 22,
lying Northeasterly of the c~nter line of Mushtown
Road, Scott County, Minnesota, consisting of
approximately 69.82 acr8~,
and
WHEREAS, New Century has petitioned thA City to have the
Property annexed to the City and det.ached from thA Township, and
WHER~AS, the Township will agr.ee to the annexation of the
Property pursuant to the terms of an amendment to a Joint
Resolut~on as to Orderly Annexation dated NovAmber 20, 1972
between the City and Township, and
WHEREAS, said Amendment to Orderly Ann~xation Agreement
between the City and the Township rAq1lires that certain fees and
taxes be paid or reimburs~d to the Township by the City, and
WHEREAS, New Century has requested that the annexation
pro~ess be oxpedited, and
WHEREAS, in order to expedite the annex~tion process, it is
necessary for the City and Townsh ip tel adopt nO amendment to t.he
Joint Resolution as to Orderly Annexfttinn for filing with the
Minnesota Municipal Board,
NOW, THEREFORE, in consideration of the mutual covenants,
undertakings and agreements of the parties, the partie~ agree as
follows:
1. The City shall enter into an Am~ndment to Orderly
Annexation Agreement with the Township and an amendment to the
Joint Resolution as to Orderly Annexation expediting the
annexation matter with the Minnesota Municipal Board, subject to
the submission and approval by the respective governing bodies
of the City and Township.
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2. New Century shall, within 30 days after the execution
of this Agreement, pay to thA City th~ amoun~ of $2,000 to
reimburse Lhe City the costs and utt.orneys' fees incurred by t.he:
City in reviewing New Century's annexation petition, negotiati,ng
an agreement with the Township, and dr~fting the necessarr
documents; in addition, New Century shall reimburse the Clty the
amount of up to $1,500, being the sum paid by the City in
.I:eimbuI'sement of th~ Township' s costs and "'tt()rney~' fees
incurred in this matter.
3. New Century shall, on or before December 31 of the
years 1992 through 1997, reimburse the City the full amount in
lieu of real estate taxes on the Property paid by the City to
the Township pursuant to that certain Amendment to Orderly
Annexation Agreement between the City and Township.
4. New Century shall pay the entire cost of improvement of
the area of Mushtown Road located on the Property to be annexed
to the City, les~ engineering and soil boring costs which shall
be borne by the CiLY.
CITY OF PRIOR LAKE
By
Its Mayor
By
Its-City Manage-I'
NEW CRNTURY CONSTRUCTION, INC.
By
Its