8.2. SR 07-15-2013 City of
Elk - Request for Action
River
TO ITEM NUMBER
Mayor and City Council 8.2
AGENDA SECTION MEETING DATE PREPARED BY
General Business July 15, 2013 Jeremy Barnhart,Deputy Director,
CODD
ITEM DESCRIPTION REVIEWED By
Petition for Nature's Dry Cleaning Related to Sanitary Sewer Cal Portner, City Administrator
Fees REVIEWED BY
Action Requested
Authorize by motion the mayor and city clerk to sign the Agreement Regarding Water and Sewer Access
Charges.
Background/Discussion
On June 3, 2013, the Council adopted an ordinance that allows for a `look back' analysis of water usage,
as a review of the application of SAC units. This was based on a request during Open Forum on May 6,
2013, by Mark Leadens, for his business,Natures Dry Cleaning and Laundry.
Mr. Leadens has submitted a formal request to utilize the new ordinance.
Water usage will be evaluated at the end of the 4-year period in the following manner:
Average of the actual Seaver usage foryears 2, 3, and 4, divided by 365 number of days peryear),
divided by 274 (SAC assumption of water usage per day).
Financial Impact
None
Attachments
• Petition,Waiver and Agreement for Payment of Water and Sewer Access Charges and
Assessment of Amounts Paid as a Special Charge under Minnesota Statutes, Section 429.101
• Agreement Regarding Water and Sewer Access Charges
POWERED BY
NaA f RE]
PETITION, WAIVER AND AGREEMENT FOR PAYMENT OF
WATER AND SEWER ACCESS CHARGES AND ASSESSMENT OF
AMOUNTS PAID AS A SPECIAL CHARGE UNDER
MINNESOTA STATUTES, SECTION 429.101
TO: City Council of the City of Elk River
MPB LLC (the "Owner"), owner of the property located at 927 US Highway 10 and
legally described on Exhibit A attached hereto (the "Property"),
Petitions the City of Elk River (the "City") to pay the water and sewer access charges
applicable to convert the use of the Property to a dry cleaner/Laundromat, in the amount of
$120,530.19; and
To levy a special assessment against the Property (the "Special Assessment") as an
unpaid special charge pursuant to Minnesota Statutes, Section 429.101, in the amount of
$120,530.19, less any payments received by the City or refunds provided by the City by
December 1, 2013.
Owner acknowledges and agrees that the City may accept or reject this Petition, Waiver
and Agreement in its sole discretion, for any reason, including, but not limited to, the availability
of City funds to pay the water and sewer access charges, and agrees, if the City accepts this
Petition, Waiver and Agreement: (1) that payment by the City of the water and sewer access
charges shall create an unpaid special charge against the Property; (2) that this unpaid special
charge shall be specially assessed against the Property by the City pursuant to Minnesota
Statutes, Section 429.101; and (3) that the Special Assessment shall be payable in 10 equal
installments payable on each May 15 and October 15 for a period of 5 years with interest
accruing on unpaid installments at the rate of 2.9% per annum. Partial prepayments are not
allowed, however, the entire remaining amount may be paid in full by Owner before the
expiration of the 5-year period without penalty. Owner expressly waives the right to a hearing
on assessments levied pursuant to this petition; expressly waives objection to any irregularity
with regard to the assessment of the Property; expressly agrees that the amount assessed is
reasonable; expressly waives any claim that the amount assessed is excessive; expressly waives
all rights of appeal, including any rights under Chapter 429, Minnesota Statutes, from the
assessment; and expressly agrees to pay when due all assessments levied pursuant to this
Petition, Waiver and Agreement.
Owner represents and warrants that it is the sole fee owner of the Property; agrees to
make payment of all assessments levied pursuant to this Petition, Waiver and Agreement; agrees
that it shall be liable for payments not made; agrees that this Agreement shall be binding on
Owner and Owner's successors and assigns; agrees that all assessments levied pursuant to this
Petition shall be paid in full prior to or at the time of transfer of the Property to a subsequent
owner; and agrees that this Agreement may be recorded against the title to the Property.
4084008.1-HJN
Dated this day of , 2013.
OWNER
MPB LLC
By:
Its:
For Office Use
Application Approved:
By:
Date:
Permit No(s):
Work completed on:
Approved for Final Payment:
By:
Date:
2
4084008.1-HJN
EXHIBIT A
Legal Description
That part of Lot 3, Block 23, Original Plat of the Village of Elk River,
Sherburne County, Minnesota, described as follows: Beginning at the
Northwest corner of the East 227 feet of the North Half of said Lot 3 of
said Block; thence South along the West line thereof a distance of 34.9
feet; thence East at right angles 1.4 feet; thence South 198 feet to a
point 145 feet East of the East line of (Park Street) now Morton
Avenue; thence Easterly to a point 187.3 feet West of the East line of
said Block 23 and 208.94 feet South of the intersection of the East line
of said East 227 feet of the North Half of said Lot 3 of said Block 23 and
the Southerly right-of-way of U.S. Highway No. 10; thence Northerly to
said point of intersection; thence Northwesterly along said right-of-
way to its intersection with the North line of said Block 23; thence
West along said North line to the point of beginning.
A-I
4084008.1-HJN
Agreement regarding Water and Sewer Access Charges
This Agreement regarding water and sewer access charges ("Agreement') is entered into
the day of , 2013, by and between the MPB LLC ("Owner"), the City
of Elk River ("City") and Elk River Municipal Utilities ("ERMU").
WHEREAS, Owner is the owner of the property located at 927 U.S. Highway 10 in the
City ("Property") and proposes to establish a dry cleaner/coin laundry on the Property; and
WHEREAS, pursuant to Section 78-189 of the City Code of Ordinances and ERMU
Policy 5.0 — Water Rules, establishment of the proposed dry cleaner/coin laundry establishment
requires repayment of additional Sewer Availability Charges and Water Connection Fees
("Access Charges"); and
WHEREAS, the amount of the Access Charges is determined by reference to the number
of units identified for the proposed dry cleaner/coin laundry in Section 78-189 of the City Code;
and
WHEREAS, Section 78-189(e)(2) of the City Code allows the City Council to adjust the
number of units applicable based on four (4)years experience for the use.
NOW, THEREFORE, the parties agree as follows:
1. Owner will pay the applicable Access Charges, as determined under Section 78-
189(d) of the City Code, for the proposed dry cleaner/coin laundry prior to the issuance of a
building permit to convert the building to this use.
2. If the Owner petitions the City to pay the Access Charges and assess the amount
of the Access Charges to the Property, those assessments will remain payable until paid in full.
3. Owner, City and ERMU will monitor actual water use at the Property for four (4)
years after the dry cleaner/coin laundry is operational and open to the public. If actual average
water and sewer use during the second, third and fourth years is less than the Access Charge
collected or assessed by the City and ERMU, the City will recalculate the units and refund the
difference between Access Charges previously paid by or assessed to the Owner and actual
average water and sewer use during second, third and fourth years. Any refund will be without
interest. If the water and sewer use during the fourth year is greater than the Access Charges
previously paid by or assessed to the Owner as calculated by the table in subsection 78-189 (d),
the Owner will not be obligated to pay additional fees.
4. This Agreement shall be null and void, and there shall be no refund of Access
Charges, whether paid up front or assessed to the Property, if the dry cleaner/coin laundry does
not operate continuously for four (4)years after initially opening.
4084007.1-HJN
MBP LLC
By:
Its
CITY OF ELK RIVER
By
John J. Dietz, Mayor
By
Tina Allard, City Clerk
ELK RIVER MUNICIPAL UTILITIES
By
John J. Dietz, Chair
By
Troy Adams, General Manager
682747.DOCX
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