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HomeMy WebLinkAbout8A - Park Nicollet Clinic Project STAFF AGENDA REPORT DATE: SA JANE KANSIER, PLANNING COORDINATOR CONSIDER APPROVAL OF RESOLUTION 97 -XX APPROVING A DEVELOPERS CONTRACT FOR THE PARK NICOLLET CLINIC MAY 5,1997 AGENDA #: PREPARED BY: SUBJECT: INTRODUCTION: The purpose of this agenda item is to consider approval of a short form Developer's Contract for the Park Nicollet Clinic. This contract is to provide for the construction of public improvements to serve both parcels of land owned by HealthSystems, Minnesota, rather than those required for just the clinic building. DISCUSSION: HealthSystems, Minnesota, is planning to construct a Park Nicollet medical clinic on the vacant land located just off of Highway 13 and Franklin Trail, between Velishek Auto Sales and the Hollywood Bar and Grill. The entire site is approximately 11.5 acres in size. The clinic building will be located on one parcel of approximately 4 acres in the northwest corner of the site. Future development will occur on a contiguous parcel. The clinic building can be constructed without platting the property comprising the site. If the property is not platted, City ordinances do not require a Development Contract. If the clinic building is constructed prior to platting, this site can be developed without a developer's contract. In order to do so, a building permit and site plan must be approved by the staff prior to construction. This option includes the following costs: . Building permit and application fees . Trunk sewer and water fee for the entire parcel (11 acres) at $3,500 per acre = $38,500.00. This fee will not be collected at the time of future development. . At the time future platting and development, the access to the site from Franklin Trail must be reconstructed as a 9 ton road, and utilities must be 1:\97files\97sitepl\parknic\counrpt.doc Page 1 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ISSUES: 1:\97files\97sitepl\parknic\counrpt.doc installed. Since the site will most likely be developed in the future, it seemed advantageous to install some of the necessary public improvements to serve the future development at this time. These improvements include the road access from Franklin Trail, and sewer and water lines in that road. The advantage to the developer is that the entrance to the clinic would not be disrupted by future construction. The proposed Developer's Contract includes the following: · The developer will agree to build a 9 ton road with curb and gutter and utilities from Franklin Trail to the clinic driveway. The City will pay for the oversizing from a 7 ton road to a 9 ton road, which is our policy. . The City will agree to defer payment of the trunk sewer and water fee until future development occurs, or until January 1, 2002, whichever is first. At that time the fee will be calculated on the entire parcel, using the then existing fees, less any right-of-way dedicated to the City. . The developer agrees to plat the entire site at the time of future development, including the clinic site. . The City will agree to deduct the clinic site from the calculation of other area charges, such as stormwater, charges, and excluding trunk sewer and water. . A separate agreement authorizes the developer to utilize public right-of-way to install a Park Nicollet Clinic sign subject to certain conditions. We have not yet prepared the specifics of this agreement; however, a sample of this type of agreement is attached for your information. One of the issues involved in the development of this site is the fact that it will be necessary to take some corrective actions with regard to contaminated soil and groundwater that likely will be encountered during the utilities installation under the access road from Franklin Trail. In the event the City accepts this road as a public right-of- way, there is some risk of future liability if recontamination takes place.. The City Engineer believes the risk is minimal; however, we do not know about the efforts that have been made to prevent recontamination of this site. As part of the Development Contract process, the staff will ask the developer to investigate when new tanks were installed at EZ Stop (the source of the contamination) and the monitoring equipment utilized. We believe that EZ Page 2 Stop installed new tanks and monitoring equipment in 1993. At the City Attorney's recommendation, this information will be confirmed by staff before May 5, 1997. ALTERNATIVES: 1. Adopt Resolution 97 -XX, approving the Developer's Contract. Authorize the Mayor and the City Manager to execute this agreement. 2. Deny Resolution 97 -XX, allowing the developer to proceed by obtaining building permit and site plan approval for this project. 3. Defer consideration of this item for specific reasons. RECOMMENDATION: The staff recommends Alternative #1. The City Council must be aware of the future liability, however minimal, for clean-up of contaminated soil. ACTION REQUIRED: Motion and second tfadoPt Resolution 97-XX I\J . Reviewed By: F, a 1:\97files\97sitepl\parknic\counrpt.doc Page 3 RESOLUTION 97-XX RESOLUTION OF THE PRIOR LAKE CITY COUNCIL TO APPROVE THE DEVELOPER'S CONTRACT FOR THE CONSTRUCTION OF THE P ARK-NICOLLET CLINIC MOTION BY: SECOND BY: WHEREAS: HealthSystems, Minnesota, is proposing to construct a Park-Nicollet Medical Clinic on the property described in Exhibit A; and WHEREAS: the Developer's Contract (Exhibit B) allows HealthSystems, Minnesota, to install public improvements beyond those required for the clinic building, but needed for the future development of the remainder of the site; and WHEREAS: the Developer's Contract spells out the City's obligations and the Developer's obligations in the installation of these improvemetns. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, MINNESOTA, authorizes the Mayor and the City Manager to sign the Developer's Contract with HealthSystems, Minnesota. Passed and adopted this 5th day of May, 1997. YES NO ANDREN GREENFIELD KEDROWSKI MADER SCHENCK ANDREN GREENFIELD KEDROWSKI MADER SCHENCK Frank Boyles, City Manager City of Prior Lake {Seal} 1:\97 fi les\97 sitep l\parknic\rs97xxcc. doc 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER E" I II~ I~ Ii e - ~m I I I . i! , Ii ~ i ~ ~ I' iI . . . ~~~~~ ~ ~ ~ "n, . . . . . I I . . . . . ..... . I' i' i:l I II : I, J i '" ,." .. 1111111111 I 1.111 ' ~ j iln;!IU j i ~ II! I I' i! 3 IIi III r.i III i Ii . I ;Il '! ,I ;Ii Sit) \ ~ '\ .., ~ z ,. c: z ... '" . ;= g c: ~ ~I .1 0\'1 ",.11 '" " PRELIMINARY AGREEMENT EQR DEVELOPMENT CONTRACT This Agreement is entered into this day of March, 1997 by and between the City of Prior Lake, a municipal corporation (hereinafter referred to as "CITY"), and Health System Minnesota, a Minnesota corporation (hereinafter referred to as "DEVELOPER"). WHEREAS, DEVELOPER is the owner of certain property located in the City of Prior Lake, Minnesota, legally described as follows; [LEGAL] and commonly known as attached Exhibit A, (hereinafter referred to as "PARCEL A"); and , and depicted on the WHEREAS, PARCEL A is adjacent and contiguous to certain property owned by DEVELOPER located in the City of Prior Lake, Minnesota, legally described as follows: [LEGAL] and commonly known as attached Exhibit B, (hereinafter referred to as "PARCEL B"); and , and depicted on the WHEREAS, DEVELOPER wishes to proceed to develop PARCEL A at the present time; and WHEREAS, platting PARCEL A and PARCEL B would delay DEVELOPER'S present plans to develop PARCEL A; and WHEREAS, CITY and DEVELOPER wish to cooperate in order not to delay or impede the development of PARCEL A, while at the same time maintaining the greatest degree of flexibility in the event PARCEL B is developed at a later time; and WHEREAS, DEVELOPER desires to avoid duplicated expenditures connected with the development of PARCEL A and future development of PARCEL B. I: \97 files\97 sitep I\parknic\pre lagmt. doc Page 1 NOW, THEREFORE, be it resolved that in consideration of the mutual promises, assurances and covenants, the sufficiency of which is not disputed that: - 1. The recitals set forth above are incorporated as if fully set forth herein. 2. The DEVELOPER or its Consulting Engineer shall be responsible for providing all construction services including, but not limited to: (a) Inspection of public improvement systems which include grading, sanitary sewer, watermain, storm sewer/ponding and street system; (b) Documentation of construction work and all testing of f improvements; (c) Construction quantities; (d) Project Testing: The DEVELOPER is responsible through its testing company, at the DEVELOPER's cost, to provide testing to certify that improvements were completed in compliance with the approved final plans and/or current City specifications. The personnel performing the testing shall be certified by the Minnesota Department of Transportation. The City Engineer may require additional testing if, in his opinion, adequate testing is not being performed. The cost of additional testing is to be paid by the DEVELOPER. (e) All improvements are subject to approval by the City Engineer. 3. When PARCEL A is developed, DEVELOPER will construct a 9-ton road in the area cross- hatched on the attached Exhibit _ with curb, gutter and utilities from Franklin Trail to the clinic driveway. The CITY will reimburse DEVELOPER (a) for the cost difference to oversize the road from a 7-ton capacity to a 9-ton capacity, (b) for the cost difference to oversizing utility service from the utility service necessary to serve PARCEL B and (c) for the cost of any utility service not necessary to serve PARCEL B. 4. When PARCEL B is developed, the CITY agrees to reimburse DEVELOPER the cost to oversize sanitary sewer, storm sewer and water serving PARCEL B. 5. As may be required by the CITY, the CITY will defer collection of its trunk sewer and water fees for PARCEL A until development of PARCEL B or until January 1, 2002, whichever occurs first. The amount of fee to be collected will be based on the rate of the trunk sewer and water fee at the time PARCEL B is developed. The fee will be calculated on PARCELS A and B, less any right-of-way dedicated to the CITY. 6. DEVELOPER agrees to plat PARCELS A and B as one plat prior to, or at the time of any development of PARCEL B. 7. CITY agrees to calculate all applicable area charges and fees, with the exception of trunk sewer and water, based solely on the acreage of PARCEL B. 8. CITY agrees, subject to negotiation of a separate "Private Use of Public Property Agreement", in substantially the form of Exhibit C incorporated herein, to permit the DEVELOPER to erect one (1) identification or directional sign in the CITY right-of-way along the access road to PARCEL A. Except for the location of the identification or directional sign, the sign must in all other 1:\97files\97 sitepl\parknic\prelagmt.doc Page 2 respects comply with the CITY's sign ordinance in effect at the time DEVELOPER applies for a sign permit. 9. The CITY acknowledges that contamination has been discovered within the right-of-way for the 9-ton road ("Accessway") referenced in Paragraph 2 of this Agreement, and that the presence of the Contamination could result in Remediation Costs or other costs, expenses, losses or liabilities, including without limitation, those resulting from installation, maintenance, operation or replacement of sanitary and storm sewer lines and pipes, electrical lines or other utilities after the road is dedicated to the CITY. Subject to the limitations set forth in this Paragraph 8, the CITY agrees that if ownership of the Accessway is transferred from the DEVELOPER to the CITY, the DEVELOPER shall be responsible for any and all Remediation required and/or Remediation Costs incurred on or after the date of said transfer to comply with applicable Environmental Laws. The CITY further agrees to release and waive, upon the date of the transfer of the Accessway to the CITY, any claims the CITY may thereafter have against the DEVELOPER for any costs, expenses, losses or liabilities incurred after said transfer date relating to the Contamination. 9.1 The following definitions shall apply to this Paragraph 9: (a) "Accessway" shall mean the right-of-way for the 9-ton road referenced in Paragraph 2 hereof, along with said road and its appurtenant curbs, gutters and utilities from Franklin Trail to the clinic driveway. (b) "Contamination" shall mean the contaminants present within or under the Accessway as disclosed in the Geoprobe Subsurface Evaluation Report, dated December IS, 1995, prepared by ATEC Associates, Inc. and any other toxic, hazardous or dangerous substances, wastes or materials as defined in any applicable Environmental Law, including without limitation any petroleum or petroleum constituents subject to regulation under Minn. Stat. ch. 115C, present in the oil or groundwater within or under the Accessway. (c) "Environmental Law( s)" shall mean any and all federal, state and local laws, statutes, codes, ordinances, regulations, rules, policies, consent decrees, judicial orders, administrative orders or other requirements relative to the environment or to human health or safety, all as amended or modified from time to time. (d) "Remediation Costs" shall mean all expenses, costs or other liabilities paid to Remediate the Contamination in accordance with this Agreement. Remediation Costs shall not include expenses, damages, losses or other costs or liabilities relating to personal injury, economic loss, property damage, natural resource damages, property value diminution or attorney's fees. (e) "Remediate" or "Remediation" shall mean removal and/or remediation of, or other response to any Contamination (including, without limitation, testing, monitoring, sampling or investigating of any kind and any cleanup, disposal or other corrective or environmental management actions), as required by the MPCA or other applicable governmental authority, in compliance with I: \97 files\97 sitep I\parknic\prelagm t.doc Page 3 Environmental Laws. Without limiting the generality of the preceding sentence, the following activities shall be considered Remediation: (i) excavation, disposal, treatment or other management of petroleum- i!llpacted soils; (ii) removal, disposal, treatment or other management of petroleum-impacted ground water; (iii) air monitoring, utilization of non-sparking or other specialized machinery, and use of any other precautionary equipment, procedures or health and safety measures due to the presence of Contamination; and (iv) any activities required and approved by the MPCA in connection with the DEVELOPER's submissions to the MPCA's Voluntary Petroleum Investigation and Cleanup program. 9.2 Notwithstanding any other terms hereof, this Paragraph 9 shall survive approval of the final plat for PARCELS A and B and the termination or expiration of this Agreement. Nothing in this Paragraph 8 shall affect or limit any of the rights or responsibilities of any party hereto relative to any other person. 10. Except as provided in Paragraph 9 hereof, this Agreement will become null and void at the time a final plat encompassing PARCEL A and PARCEL B is approved by the City Council. 11. Any amendment to the Agreement must be in writing, and authorized by the City Council. 12. 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. 13. This Agreement shall be construed in accordance with the laws of the State of Minnesota. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed on the day and year first above written. DEVELOPER: HEALTH SYSTEM MINNESOTA CITY OF PRIOR LAKE: By: Its: By: Its Mayor By: Its City Manager 1:\97files\97 sitep l\parknic\pre lagmt.doc Page 4 APPROVED FOR FORM & EXECUTION By: Its City Attorney REVIEWED FOR ADMINISTRATION By: Its City Engineer STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of , 199_, by , the of HEALTH SYSTEM MINNESOTA, a Minnesota corporation, on behalf of the corporation. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of , 199_, by Lydia Andren, and Frank Boyles, the Mayor and City Manager, respectively, of City of Prior Lake, a Minnesota municipal corporation, on behalf of the corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Campbell, Knutson, Scott & Fuchs, P.A. 1380 Corporate Center Curve 3 17 Eaganda1e Office Center Eagan, MN 55121 I: \97 files\97 sitep I\parknic\prelagmt. doc Page 5 04/30/97 WED 14:35 FAX 612 452 5550 CK: n.--8 SAMPLE AGREEMENT PERMIT AGREEMENT FOR PRIVATE USE OF PUBLIC PROPERTY TIllS AGREEMENT is made and entered into this day of . 1997, by and between the CITY OF PRIOR LAKE, Minnesota, a municipal corporation (hereinafter referred to as "City"), and , [husband and wife; a parmership; a corporation] (hereinafter referred to as "Owner"). RECITALS WHEREAS, Owner is the fee owner of a tract of land in Scott County, , located at , and legally described as follows: [LEGAL] (hereinafter referred to as "Owner's Property"); and WHEREAS, the City is the owner of property, legally described as follows: [LEGAL] and; WHEREAS, a portion of the serving Owner's Property encroaches on a portion of the property abutting Owner's propeny, as described on Exhibit A attached hereto (the encroached portion of the property hereinafter referred to as the "Pennit Propertylt); and -OR- WHEREAS. Owner wishes to use the Permit Property for ; and WHEREAS, Owners have requested the City to authorize continued use of the Permit Property for purposes; and WHEREAS, such continued use of the Permit Property is not inconSistent with current use of the property by the City and the public; and WHEREAS, the City may in the future desire to use the Permit Property for other purposes which are not consistent with Owners use of the Permit Property, and therefore the City intends to retain all of its right, title, and interest in the Permit Property; 46241 1 04/~0/97 WED 14:35 FAX 612 452 5550 C K ~ D T:' 1aI 009 SAMPLE AGREEMENT NOW, THEREFORE, the parties agree as follows; 1. Permit. Owners shall be pennitted to use the Permit Property for purposes at Owner's sole expense and risk, and with full knowledge that the City may, upon notice as provided herein, require Owner's to be removed from the Permit Property at any future date, at Owner's sole expense. The Penn it Property must be kept open to public use at all times, and no fence or other obstruction may be placed on the Permit Property without the prior written approval of the City, which may be given or withheld in the sole discretion of the City. 2. Maintenance of Permit Propertv: Modification. Owner shall maintain the Permit Property in good condition at all times, at their sole cost and expense. If Owner fails to do so, the City may cause the necessary repair or maintenance to be done at Owner's cost. If Owner fails to pay the City for such costs, the City may assess the costs against Owner's Property. Owner shall not make any modifications to the or otherwise modify the Permit Property without the prior written approval of the City, which may be given or withheld in the sole discretion of the City. 3. Termination. In the event the City desires to use the Permit Property for a purpose which is inconsistent with use by Owner, to be determined in the City's sole discretion, or in the event Owner fails to comply with any requirement of this Agreement within sixty (60) days after receiving a notice from the City requesting such compliance, the City through its City Manager may terminate this Permit Agreement by giving ninety (90) days written notice of termination to Owner by certified mail at the following address: Such notice may, at the City's option, require Owner to completely remove the from the Penn it Propeny within said ninety (90) day notice period, including all debris. If this Pennit Agreement is terminated by the City as provided herein, Owner will be solely responsible for all costs and expenses related to construction of a which is located on Owner's Propeny, in accordance with all City Ordinances. If Owner fails to remove the as required by a proper notice ofcermination, the City may cause the removal to be done and the costs of such work shall be paid by Owner. If Owner fails to pay the City for such costs, the City may assess the costs against the Owner's Property . 4. Consent to Special Assessment. Owner hereby acknowledges and consents to the City J s right to specially assess any costs incurred by the City for any repair or maintenance performed pursuant to Paragraph 2 of this Pennit Agreement, or any costs incurred by the City to remove Owner's from the Permit Property pursuant'to Paragraph 3 of this Permit Agreement. Owner waives any right to protest or appeal any special assessment It:vied pursuant to this Permit Agreement. 5. Future Develooment. Owner understands and acknowledges that the City may utilize the Permit Property at some future date and in the sole discretion of the City. In the '62" 2 04/30/97 WED 14:36 FAX 612 452 5550 C K S & r SAMPLE AGREEMENT event the City undertakes such development, and if this Permit Agreement is not tenninatcd by the City as provided above, Owner agrees to cooperate with the City as necessary to facilitate City's use of the Permit Property, and the City agrees to use its best efforts to accommodate Owner's use of the Permit Property for the purposes stated herein. 6. Indemnity. Owner shall defend, indemnify, and hold harmless the City and its employees, subcontractors, attorneys, agents, and representatives from and against all claims, damages, losses, costs and expenses, inclUding attorney's fees, which may be incurred by or asserted against the City or for which the City may be held liable, which arise out of or result from use of the Permit Property for purposes, including but not limited to the maintenance, repair or removal of Owner's , except liability caused solely by the negligence of the City. 7. Insurance. As long as this Permit Agreement is in existence I Owner shall maintain a general liability insurance policy which provides coverage for the Permit Property for any damage to property of others or injuries to persons. Said insurance policy shall provide coverage on an occurrence basis in an amount no less than One Million dollars ($1,000,000), and shall include contractual liability coverage to provide coverage for the indemnification provision in Paragraph 6 above. Said policy shall name the City as an additional insured, and shall contain a clause which provides that the insurer will not cancel. non-renew I or materially change the policy without fIrst giving the City thirty (30) days prior written notice. Owner shall provide the City with a Certificate of Insurance t"or said policy which specifically details the conditions of this Paragraph 6. 8. Waiver of Claims. Owner acknowledges City's ownership of the Permit Property and knowingly waives any and all claims against the City related to Owner's use of the Permit Property; including but not limited to claims of abandonment and contractual claims arising out of this Permit Agreement, except any claims which are the result of the sole negligence or willful misconduct of the City or its employees or agents. 9. Condition of ProoertV. Owner accepts the Permit Property "as is" and the City makes no warranties regarding the conditions of the Permit Property or the suitability of the Permit Property for Owner's purposes. 10. Binding Effc't. This Permit Agreement shall run with the land and shall be binding on and inure to the benefit of the parties hereto, their heirs, successors, or assigns. . 11. Whole Ae:reement: Modification. This Permit Agreement contains all of the terms and conditions relating to the permit granted herein, and replaces any oral agreements or other negotiations between the parties relating to the permit. No modifications to this Permit Agreement shall be valid until they have been placed in writing and signed by all parties hereto. , 12. Recordation. Office of the Owner shall cause this Permit Agreement to be recorded in the County Recorder at their cost and expense. 46241 3 04/30/97 WED 14:36 FAX 612 452 5550 C F SAMPLE AGREEMENT IN WITNESS WHEREOF, the parties have executed this Permit Agreement as of the date first above written. CITY OF PRIOR LAKE OWNER(S) By: Lydia Andren, Mayor By: Frank Boyles, City Manager STATE OF MINNESOTA ) )88. COUNTY OF ) The foregoing instrument was acknowledged before me this day of I 19_, by Lydia Andren and Frank. Boyles, the Mayor and City Manager respectively of the City of Prior Lake, on behalf of the City of Prior Lake through authority granted by its City Council. Notary Public STATE OF MINNESOTA ) )88. COUNTY OF ) The foregoing instrument was , 19_, by and on behalf of the [corporation/partnership]. acknowledged before me this and , respectively of day of , the Notary Public This InstrUment Drafted By: CampbeJl, Knutson, Scott & Fuchs, P.A. 317 Eaganc1ale Office Center 1380 Corporation Center Curve Eagan. Minnesota 55121 (612) 452-5000 46241 4 .. '10'