3.4. SR 02-06-2006
Item Description
Consider Parking Easement Agreement with First National
Bank of Elk River
Item Number
3.4
Prepared by
Heidi Steinmetz, Assistant Director of
Economic Develo ment
Reviewed by
Catherine Mehelich, Director of
Economic Develo ment
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Consent February 6, 2006
Introduction
Construction of the King Avenue parking lot improvement project took place between the months of
June-August 2005. The project accomplished the following:
. Added about 70 spaces for downtown customers and employees with the removal of the
Municipal Utilities building and the closure of the King Avenue access from Hwy 10
. The east side of the lot was seal coated and the entire lot was re-striped.
. The area of the lot owned by First National Bank of Elk River, which includes twenty-three
parking spaces and is located immediately adjacent to Main Street along side of the Elk River
Meats building was included in the seal coating and re-striping portion of the project
. The Street Department produced signage for the lot, identifying the lot as a public lot from Hwy
10 and Main Street and designating employee and public parking areas of the lot.
Prior to the project commencing, community input was gathered. The King Avenue parking lot task
force made up of downtown business and property owners and one downtown resident, held monthly
meetings from January-May 2005. Task force recommendations regarding the project were accepted by
the HRA in June of 2005.
Discussion
A Parking Easement Agreement between First National Bank of Elk River and the City was developed by
the City attorney since First National owns the above referenced portion of the lot. The key requirement
of the agreement is found on page 3 in Section 15, which requires the City to designate 23 parking
spaces in the King Avenue parking lot for First National employees.
Financial Impact
MetroPlains Development, Downtown Revitalization Project developer, paid for the King Avenue
parking lot improvement project, therefore covered the cost to improve the portion of the lot owned by
First National.
Attachments
Parking Easement Agreement
Action Requested
The attached Parking Easement Agreement has been approved by First National Bank of Elk River and
staff requests that the City Council consider approval and authorize staff to execute the agreement.
Council Action
Motion by _
Second by _
Vote
Follow Up
70
1
--,
--,
I
--,
~
~ I ;
I
I
l
w J L
,:.
=> 0
z .
w
>
I:
z
-
Y:
_ EMPLOYEE
_ RESIDENT
J _ PUBLIC
{ .. I
~?
'-"
;~
MAIN STREET
F~ P ARKING LAYOUT
River
~re
11/30/2005
DRAWN BY:
CML
SCALE:
NOT TO SCALE
A
PARKING EASEMENT AGREEMENT
T
day of
RIVER,
River, a
ARKING EASEMENT AGREEMENT ("Agreement") is made as of this 1
, 20~y and among the FIRST NATIONAL BANK OF ELK
ited State banking corporation (hereinafter called "Grantor"), and the City of Elk
nicipal corporation (hereinafter called the "City").
WITNESSETH THAT:
WHEREAS, Grantor is the owner of the property described as that part of Lots 1 and 2,
Block 2 of the VILLAGE OF ELK RIVER, according to the recorded plat thereof, Sherburne
County, Minnesota more particularly described Exhibit A attached hereto and incorporated
herein (the "Grantor Property"); and
WHEREAS, City is the owner of the property known as the King Street Right-of-Way,
according to the recorded plat of the VILLAGE OF ELK RIVER, Sherburne County, Minnesota
(collectively, the "City Property"); and
WHEREAS, Grantor and City desire that there be located on the Grantor Property an
easement for parking purposes as described herein; and
WHEREAS, the parties hereto desire to evidence in writing the terms and conditions
upon which said easement will be granted; and
WHEREAS, in connection with the ownership and development of the Grantor Property
and the City Property, Grantor and City desire to provide for non-exclusive easement
appurtenant to the City Property as set forth below.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:
1. Easement Grant. Subject to the conditions and limitations hereinafter set forth,
Grantor hereby declares and grants for the benefit of the City Property a non-exclusive easement
appurtenant to the City Property upon, over and across the parking area to be constructed on the
portion of the Grantor Property shaded on Exhibit B and over and across the driveways on the
Grantor Property reasonably necessary or appropriate for access to such parking area for the
purpose of providing the owner of the City Property from time to time and the general public
with vehicular (excluding construction vehicles) parking in the parking area designated on
Exhibit B, pedestrian ingress and egress to, from and between the Grantor Property and the City
Property and for use of the driveways on the Grantor Property for access to adjacent public
roads.
2. Maintenance. The owner of the City Property shall construct, maintain, repair,
replace, and keep the portion of the parking easement described in Paragraph 1 neat, orderly in
condition and appearance, and in good repair, including snow removal. The driveways shall not
be obstructed in any manner but shall be kept open at all times for the free use thereof. Each
respective property owner shall comply with all laws, rules, regulations and requirements of
public authorities relating in any manner whatsoever to the parking area and related access.
3. Duration. The easements, covenants, conditions and restrictions c~:mtained herein
shall be perpetual (subject to the specific provisions and limitations hereof) and shall create
mutual benefits and covenants running with the Property, and shall be binding upon any owner,
tenant or occupant of the City Property and the Grantor Property and their respective legal
representatives, heirs, successors and assigns. This easement may be terminated by Grantor by
providing written notice to the City during the tenth year of the initial easement term or the tenth
year of any subsequent renewal. The termination shall be effective upon the later of 1) the date
10 years after the date of this agreement or the applicable renewal; or 2) One year after the date
of the notice. If the easement is not terminated the easement shall automatically renew for
additional ten year terms until terminated by Grantor. Upon Termination the City agrees to
execute any document necessary to clear this easement from the title to the Grantor Property.
4. Sole Ae:reement. Except as provided in Paragraph 3, this Agreement may not be
amended or modified in any respect whatsoever except by an instrument in writing signed by all
parties. This Agreement constitutes the entire agreement between the parties with respect to the
easement set forth herein and supersedes all prior negotiations, discussions, writings and
agreements between them in connection therewith except as set forth herein.
5. Not a Public Dedication. Nothing herein contained shall be deemed to be a grant
or dedication of any portion of the Grantor Property to or for the general public or for any public
purposes whatsoever, it being the intention of Grantor and City that this Agreement shall be
strictly limited to and for the purposes herein expressed.
6. Attornevs' Fees. In the event of any controversy, claim or dispute relating to this
Agreement, the prevailing party in a non-appealable judicial resolution of such controversy,
claim or dispute shall be entitled to recover from the losing party reasonable expenses, attorneys'
fees and costs.
7. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument.
8. Applicable Law. This Agreement shall be governed by and construed m
accordance with the laws of the State of Minnesota.
9. Partial Invaliditv. Should anyone or more of the provisions of this Agreement
be determined to be invalid, unlawful or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions hereof shall not in any way be affected or impaired
thereby unless as a result the purpose and intent of this Agreement shall thereby be substantially
and essentially impaired. In such event, the parties shall diligently proceed to revise this
Agreement in order to rememorialize such purpose and intent.
10. Rie:hts Reserved. Grantor reserves and shall continue to enjoy the use of the
Grantor Property for any purpose which does not interfere with or prevent the use of the
easement herein granted, including the right to locate and relocate buildings, driveways, parking
-2-
areas (other than the one granted to City) and other improvements to be located upon the Grantor
Property .
11. Construction Consent. Grantor hereby grants consent to the City for
construction (and subsequent maintenance, repair or replacement) on Grantor's Property of the
parking area crosshatched on Exhibit B attached hereto and incorporated herein by reference,
provided such work is performed in such a manner as to interfere with Grantor's business
operations on the Grantor Property as little as reasonably possible under the circumstances and
provided such work is done in accordance with applicable building codes, laws, ordinances and
regulations. All such work shall be performed at the City's sole cost and expense. The City
shall indemnify and defend Grantor from and against any loss, claim, damage or expense arising
out of any negligent or wrongful act of City, its agents, employees and contractors in the
performance of such work.
12. Miscellaneous. Whenever a transfer occurs in the ownership of either the City
Property or the Grantor Property, the transferor shall have no further liability for breach of
covenant occurring thereafter. Each owner of the City Property and Grantor Property agrees to
look solely to the owner of the other tract for recovery of any judgment from such owner, it
being agreed that the partners, members, directors, officers, managers or shareholders shall never
be personally liable for such judgment. The covenants and obligations of each owner set forth in
this Agreement shall be binding upon such owner solely as the owner of their respective portion
of the Property and shall be binding upon the owners of the parcels within the Property and their
respective successors and assigns only as to such obligations arising during their respective
periods of ownership of such respective parcels of the Property.
13. Notices. All notices to be given under this Agreement shall be given, in writing,
by certified or registered mail to each owner at the address or addresses to which tax statements
would be sent by the real estate taxing authority of Sherburne County, Minnesota, to the owner
of each applicable portion of the Property.
14. Condemnation. In the event of condemnation of any of the easement rights
granted herein, the owner of the dominant estate shall not make any claim for a taking of such
easement rights unless such claim can be made without reducing the award to the owner of the
servient estate below what it would be absent the claim by the owner ofthe dominant estate.
15. Desienated Spaces. During the term of this easement, the City agrees to reserve
23 designated parking spaces for the use of Grantor's employees in an area of the parking lot
located on both the Easement Area and adjacent land owned by Grantee (as shown as Employee
Parking on Exhibit B). Grantee may, from time to time, upon sixty days notice to Grantor move
the designated Employee Parking spaces to other areas of the parking lot provided that they are
still reasonably convenient to the Grantor Property.
-3-
IN WITNESS WHEREOF, City and Grantor have executed this Agreement as of the
date set forth above.
CITY OF ELK RIVER
Stephanie Klinzing, Mayor
Joan Schmidt, City Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF SHERBURNE)
The foregoing instrument was acknowledged before me this _ day of _, 2005, by
Stephanie Klinzing and Joan Schmidt, the Mayor and City Clerk of the City of Elk River, a
municipal corporation, on behalf of the corporation.
Notary Public
-4-
STATE OF MINNESOTA )
) ss
COUNTY OF SHERBURNE)
The fore:oing instrument was acknowledged before we this 5fh day o~ 20J.
by qplln /1lJU/ Ivt7 , the vi CL tf!s;d~ of the FIRST
NA TIONAL BANK OF ELK RIVER, a United States banking corporation, on behalf of the
corporation.
cSfaJ~~
Notary Puolic
THIS INSTRUMENT WAS DRAFTED BY:
Gray Plant Mooty (CDW)
500 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
Phone: (612) 632-3000
GP:1717299 v4
-5-
EXHIBIT A
(Description of Grantor Property)
Parcel # 75-405-0215
The southerly 70 feet of Lot 1 and the southerly 70 feet of the westerly 11 feet of Lot 2, all in
Block 2, said distance being measured as being parallel with the southerly and westerly line of
said lots, Village of Elk River, Sherburne County, Minnesota.
Parcel # 75-405-0220
The north 49 feet of the south 119 feet of Lot 1 and the west 11 feet of the north 49 feet of the
south 119 feet of Lot 2, Block 2, said distance being measured as being parallel with the
southerly and westerly lines of said lots, Village of Elk River, Sherburne County, Minnesota.
-6-
EXHIBIT B
(Depiction of Parking Easement Area)
-7-