HomeMy WebLinkAbout9B Revise Interpretive Center Resolutions
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
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4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
August 20, 2007 '\ '\'
~~ank Boyles, City Manag~~
CONSIDER APPROVAL OF RESOLUTIONS DECLARING RESOLUTIONS 07-
135 AND 07-136 NULL AND VOID AND CLARIFYING CONDITIONS
RELATING TO THE JEFFERS POND INTERPRETIVE CENTER BUILDING
CONSTRUCTION PROJECT AND A CONSERVATION EASEMENT OVER
EIGHT ACRES OF CITY PROPERTY WHICH IS PART OF THE FIVE HAWKS
ELEMENTARY SCHOOL OUTDOOR LEARNING CENTER PROPERTY.
Introduction
The purpose of this agenda item is to have the City Council approve revisions to
resolutions regarding the conservation easement for the Five Hawks property
and the Jeffers Pond Interpretive Center building construction project.
History
On July 17,2007, the City Council adopted resolutions approving the
conservation easement on the Five Hawks site and dedication and receipt of
funds toward the construction of the Interpretive Center building. Paul Oberg
advised us of some questions he had about the resolutions. On August 8, 2007,
all parties met and discussed mutual concerns. On August 14, 2007, the City
Attorney's office prepared a letter (attached) memorializing the conclusions
reached at the meeting. Paul Oberg signed the letter signifying his agreement
with the August 14, 2007, letter.
Current Circumstances
The resolutions have been modified to be consistent with our agreements.
ISSUES: The revised resolutions and August 14; 2007, letter from Joe Schmitt which have
been agreed to by both parties address the major concerns.
FINANCIAL No change.
IMPACT:
ALTERNATIVES: 1. Adopt the resolutions as proposed.
2. Adopt the resolutions with modifications.
3. Take no action.
RECOMMENDED Alternative #1.
MOTION:
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www.cityofpriorlake.com
Phone 952A47.9800 /Fax 952.447:4245
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4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
RESOLUTION 07 -xxx
A RESOLUTION AUTHORIZING THE JEFFERS FOUNDATION TO PREPARE A CONSERVATION
EASEMENT FOR EXECUTION BY THE MAYOR AND CITY MANAGER OVER EIGHT ACRES OF
PROPERTY OWNED BY THE CITY AT FIVE HAWKS.
Motion By:
Second By:
WHEREAS, The City received a donation of eight acres of land from the developers of Creekside
Commons; and
WHEREAS, The City has allowed Independent School District 719 (School District) to use this land
as part of the Five Hawks Outdoor Learning Center facility; and
WHEREAS, The Jeffers Foundation has asked the City to permit a conservation easement to be
placed over this property to preserve it in perpetuity for outdoor learning center
purposes; and
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WHEREAS, Jeffers Foundation has offered to have the conservation easement prepared subject to
the review of the City Attorney; and
WHEREAS, Jeffers Foundation has offered to pay the City two-hundred thousand dollars
($200,000) for agreeing to the conservation easement subject to the $200,000 being
used towards the construction of the Jeffers Pond Interpretive Center building project
before January 18, 2011; and
WHEREAS, A meeting was conducted on August 8,2007, which is memorialized in a letter signed
and agreed to by both parties dated August 14, 2007.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
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1. The recitals set forth above are incorporated herein.
2. Resolution 07-135 is hereby declared null and void.
3. The City agrees to place a conservation easement over approximately eight acres of land adjacent
to Five Hawks Elementary School; and further agrees that the Minnesota Land Trust has the
authority to enforce the provisions set out in the conversation easement.
4. Jeffers Foundation shall prepare, or cause to be prepared, the proposed conservation easement;
including but not limited to any surveying costs necessary to define the property encumbered by the
conservation easement. Upon completing preparation of the conservation easement, the document
shall be provided to the City Attorney for review, comment and approval.
5. The Mayor and City Manager are authorized to execute the approved conservation easement
subject to 1) confirmation that $200,000 in securities have been assigned to the City of Prior Lake
in the same account and subject to the same procedures as the $500,000 presently assigned for
the interpretive center building; and 2) upon execution of an agreement with respect to the
interpretive center which is satisfactory to the City and School District with respect to the use, costs,
responsibilities and maintenance of the facility.
www.citypfpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
6. The City Attorney is hereby directed to prepare the appropriate legal documents to effectuate the
terms of this resolution.
7. The City, School District and Jeffers Foundation shall use their best efforts towards assuring the
Jeffers Pond Interpretive Center becomes a reality before January 18, 2011. If the Center does not
become a reality before that date, the City shall return the securities to Jeffers.
PASSED AND ADOPTED THIS 20th DAY OF AUGUST 2007.
YES
NO
Haugen Hauaen
Erickson Erickson
Hedberg Hedbera
LeMair LeMair
Millar Millar
Frank Boyles, City Manager
1:\COUNCIL\RESOLUTI\Admin\2007\07-xxx Five Hawks Easement 082007.DOC
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4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
RESOLUTION 07 -xxx
A RESOLUTION AUTHORIZING THE STAFF TO PLACE $280,000 FROM THE GENERAL FUND
RESERVE IN AN INTEREST EARNING ACCOUNT TO BE USED FOR THE CONSTRUCTION OF
THE JEFFERS POND INTERPRETIVE CENTER BUILDING
Motion By:
Second By:
WHEREAS, The final plat, Development Contract and related documents for Jeffers Waterfront set
aside 1.3 acres of land from Wensmann Homes and a contribution from the Jeffers
Foundation of $500,000 paid in the form of stocks for the construction of a Jeffers
Pond Interpretive Center building; and
WHEREAS, A committee consisting of City, school district and Jeffers Foundation representatives
have identified, in a preliminary way, that the programs envisioned for the building will
require a building estimated at $1.4 million plus $200,000 in fixtures, furnishings and
equipment; and
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WHEREAS, A twenty-four-acre parcel within the development has been placed in conservatory by
the Jeffers Foundation; and
WHEREAS, the City has, at its cost, extended woodchip trails throughout this property and is
installing two floating boardwalks; and
WHEREAS, For the betterment of the Jeffers Waterfront development and the community in
general, the City, school district and Jeffers Foundation have agreed in concept to
support the construction of an interpretive center as follows:
$500,000 Jeffers Foundation initial deposit called for in platting documents
$200,000 City of Prior Lake provided through the Jeffers Foundation as a
result of City approval authorizing the placement of a
conservation easement over City land adjacent to Five Hawks
Elementary school
$280,000 City of Prior Lake from General Fund reserve
$420,000 Jeffers Foundation grant
$200,000 School district contribution to furniture, fixtures and equipment
$1,600,000 Total; and
WHEREAS, A meeting was conducted on August 8,2007, which is memorialized in a letter signed
and agreed to by both parties dated August 14, 2007.
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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. Resolution 07-136 is hereby declared null and void.
www.cityofprior\ake.com
Phone 952.447.9800 / Fax 952.447.4245
3. $280,000 is hereby allocated from the General Fund Reserve to be placed in an interest earning
account to be used for construction of the Jeffers Pond Interpretive Center building subject to
receiving: $200,000 set aside in connection with the aforementioned conservation easement, up to
$420,000 from the Jeffers Foundation on a 60% Jeffers Foundation, 40% City basis, $500,000 set
aside with the final plat of Jeffers Waterfront and the contribution of $200,000 from the School
District; and further, that the School District will maintain, operate and program the interpretive
center building for all ages subject to written agreement with the City.
4. The City Attorney is hereby authorized to prepare the legal documents to effectuate this resolution.
5. The Mayor and City Manager are authorized to execute such necessary documents on behalf of the
City.
PASSED AND ADOPTED THIS 20th DAY OF AUGUST 2007.
YES NO
Haugen Hauaen
Erickson Erickson
Hedberg Hedbera
LeMair LeMair
Millar Millar
.
Frank Boyles, City Manager .
1:\COUNCIL\RESOLUTI\Admin\2007\07-XXX General Fund to Interp Center 082007.DOC
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AUG-17-2007 19:00
AUG-17-2007 17:55
Halle land
USES CLIENT ACCT
6123387858
952 476 7439
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halleland lewis
nilan & johnson PA
Al1;or~eys ~t L.''"'
600 U S. Ban~ Plaza Soulh
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MiMeaj)Ol,s, MrJ 65401.11501
Of1jc~; 612.338 1B38 F~~: 6\2.nB.~8SI'l
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Direct Di.al: 611.1(14..4141)
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August 14, 2007
.....VL4 ELECTRONIC MAIL-
Mr. Paul W. Oberg
Chief Executive Officer
Jeffers Foundation
P.O. Box 408
Wayz:ata, MN 55391
Dear Paul:
I write to follow-up on our meeting of August 8,2007. regarding the Interpretive Center and
conservation casement. I thought that the meeting was extremely productive and that all parties
approached our discussion in a constructive and positive manner. I believe that we were able to
resolve many of the outstanding issues that needed to be addressed in advance of the project. As
promised, I am writing to confinn our discussions.
Although we covered a wide r:ange of issues, I will begin by addressing the iS5ues raised in your
July 21~ 2007 letter, You raised five concerns regarding the City's $200,000 set aside proposal,
and a second set of five concerns regarding the City's resolution regarding the $500~OOO
:matching proposal. Let me walk through each of your concerns:
· You're correct that the "whereas" clause stating that the School District would
have the authority to enforce the terms of the conservation easement is incorrect.
We will correct that 4'whereas" clause to st:a.te that the Minnesota Trust has that
authority,
· You state the "set aside" is conditioned "upon the execution of an agreement with
respect to the Environmental Learning Center is satis:rn.::tory to the City and the
School District which would set out the periro.eters with respect to the use and
maintenance of the Environmental Learning Center." We agree. As we discussed
yesterday, we will first need to determine what the ''footprint'' of the site allows in
terms of a building. However, we agree that we will need to enter into an
agreement acceptabJe to both the City and the School District regarding the use of
the building,
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Halle land
USES CLIENT ACCT
6123387858
952 476 7439
Mr. Paul W. Oberg
. Chief Executive Officer
Jeffers Foundation
August 14, 2007
Page 2
. You state that "Jeffers will not pay any cash to the City (except to pay the cost of
construction of the Interpretative Center as such expenses are incurred), but rather
will assign securities to the City to ensure the payment of such costs when they
are incurred.lt This was obviously a critical point during our discussions. I
believe that we teached a solution that is acceptable to everyone at the table. As I
understand matters, when the City receives an invoice for expenses incurred in
connection with the project, the City will provide the invoice to Jeffers. Jeffers
will agree to provide money to the City to cover the invoice within sixty (60)
days. The City will then pay the invoice. As you noted in your letter, you will
also collateralize the funds with securities to ensure that Jeffers has sufficient
resources to pay the expenses when they are incuned.
. You note that the income from the securities assigned to the City will be and
remain the property of Jeffers, That is correct. In fact, there will be no transfer of
cash at all until the City incurs an invoice as described above. As a result, there
will be no interest income to the City.
. You note that ~'(w]hen the amount secured by the $200,000 is paid by Jeffers to
the City, the securities will be reassigned to Jeffers; and, if the Interpretive Center
is not built and the $200,000 expended for such purpose by January 18,2011, the
securities will be reassigned to Jeffers. Under no circumstances mil the
unexpended portion of the $200,000 become the property of the City for
supplementing its general funds." All of those conditions are acceptable to the
City.
Those are all of the conditions :regarding the $200,000 set aside prOposal. Insofar as the
$500,000 matching proposal is concerned, we addressed the concerns in your July 21,2007
letter as follows;
. You state that "Jeffers will not contribute $420,000 as a set sum, but will
contribute 60% of the cost of constructing and fix.turizing the Interpretive Center
in excess of the $500,000 originally pledged by Jeffers and secured by bonds held
by the City, the $200,000 of the set aside to be made by Jeffers and secured by
bonds to be held by the City, and the amount furnished by the School District to
furnish and fixturize the building for environmental and community education
putposes, not to exceed $420,000 for such 60% pledge.'l As we discussed. the
$500,000 original set aside will be handled in the same manner as the $200,000
set aside described above. In other words, the City will incur expenses, will
present invoices to Jeffers, Jeffers will provide funds to the City within sixty (60)
days for the invoices, and the City 'Will then pay the contractor(s). Once the costs
have exceeded $700,000, the City will fOI'V'lard invoices to Jeffers, and Jeffers will
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Halleland
USES CLIENT ACCT
6123387858
952 476 7439
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Mr. Paul W. Oberg
Chief Executive Officer
Jeffers Foundation
August 14t 2007
Page 3
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pay 60% of such invoices in the same manner discussed a.bove. The rema.ining
40% will be pa.id by the City and School District.
Yau state that "Jeffers' matching grant pledge is conditioned upon approval by
Jeffers of the building to be constructed on the site, and the execution by the City
and School District of an agreement satisfactory to both parties concerning the
use, operation and maintenance of the building." As pre-viously noted, we
understand the City and School District must reach an agreement satisfactory to
both parties conceming the use, operation and maintenance of the building. We
discussed the issue of "approval by Jeffersn at some length yesterday. We
understand that you are concerned that the building actually be designed for use
as an Interpretive Center for environmental education, and not for a different
purpose. Froro OUI side of the table~ the City does not wish to be involved in a
lengthy debate concerning minor details of the construction. I believe we rea.ched
a mutually acceptable conclusion by a.greeing that Jeffers' matching pledge is
conditioned upon approval by Jeffers) but that Jeffers shall only have the right to
withhold that approval on the grounds that the building is not designed as an
Interpretive Center for environmental education. This allows you to withhold
appro-val if the building is not actually designed for the pmpose that you desire,
while avoiding a debate over minor details of the construction.
You wrote that "Jeffers reserves the right to pay its portion of the matching grant
over a period of three years.1' This was an area of significant concern to the City,
because it might result in the City being forced to fmance the building over an
extended period of time. You agreed yesterday that you would be willing to pay
Ihe entire sum (including the original $700,000 and the additional $420,000) on or
before December 31, 2008, assuming of course that expenses have been incurred
by that time.
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You state in yout letter that "the amount of the matching grant to be made by
Jeffers will be subject to draw to pay expenses incurred in the construction of the
Interpretive Center only after the $700,000 set aside for such purposes has been
expended. Ideally, the draw in excess of such $700~OOO should be advanced and
paid in a ratio of 60% by Jeffers and 40% by the City:' As noted abo-vt, the City
agrees that the $700,000 will be used first; and that Jeffers will only pay 60% of
expenses incurred aftel.' the $700,000 has been spent.
Yau expressed c;oncem that the School District may not be willing to make
payment of the $200,000 to the City to furnish and fixturize the building. 1 am
happy to note that the School District has already made such payment. As a
result, I beli~e that this concern has been resolved.
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Halle land
USES CLIENT ACCT
6123387858
952 476 7439
Mr. Paul W. Oberg
Chief Executive Officer
Jeffers Foundation
August 14,2007
Page 4
I believe that this resolves all of the concerns ex.pressed in your July 21, 2007 correspondence.
Of course. we will require City Council approval of modified resolutions to address some of
these issues, As we discussed yesterday, we will prepare modified resolutions and present them
to the Council as soon as possible. Obviously, the Council must approve those resolutions.
We also discussed timing of work on the project. You suggested that we begin planning as soon
as possible and that we engage Pioneer to attempt to learn what sort of footprint is possible on
the property in light of set asides and other limitations. You indicated that if the City engaged
Pioneer to begin work on the project, Jeffers would be willing to pay the cost of that work (as
part of the expenses outlined above and on the tel111S discussed above). I am happy to report that
the City has already spoken with Pioneer and that they are preparing to begin work on this effort.
Finally, we discussed a "roadmap" for the tasks to be accomplished on this project. City staff is
preparing such a roadmap and 1 will forward it to you when it is complete.
As I said before, I thought that the meeting was extremely productive. I am confident that we
will be able to work together to make this a very successful project for Jeffers, the School
District and the City. If you believe lUly portion of my summary is inaccurate, please give me a
call so we may discuss and resolve those issues as soon as possible.
As we discussed this afternoon, I have included a signature line for you to confinn your
understanding regarding these issues. Thank you for your professional courtesy in this regard.
n
G. Schmitt
Agreed'~ and accepted by Paul Oberg:
\ ~w.O~?
Paul Oberg
Chief Executive Officer
Jeffers Foundation
JGS/jbv
co: Mayor Jack Haugen
City Manager, Frank Boyles
City Attorney, Suesan Lea Pace
Superintendent, Thomas Westerhaus
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