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HomeMy WebLinkAbout2010-08-26 WC Recorded Document 1201015 - City Services Payment Agreement ,.t r 1201015 Receipt#: 139895 AGR $46.00 111 111 I 11 11 Attest Copy $2.00 Certified Filed and /or recorded on: 8/26/2010 1:45 PM 1201015 Certificate #: 67279 Office of the Registrar of Titles Return to: Property Records & Taxpayer Services COMMERCIAL PARTNERS TITLE Washington County, MN 200 SOUTH 6TH STREET SUITE 1300 Kevin J Corbid, County Recorder MINNEAPOLIS MN 55402 AGREEMENT FOR PAYMENT FOR CITY SERVICES COPY 4iLti CL vq CA 0-6 a ' (%\ C AGREEMENT FOR PAYMENT FOR CITY SERVICES THIS AGREEMENT FOR PAYMENT FOR CITY SERVICES (this "Agreement ") was made as of the A,alay of , 2010 by and between The City of Oak Park Heights, a municipal corporation un er the laws of the State of Minnesota (the "City), and Oakgreen Villa, LLC, ANCHOBAYPRO, Inc., and Green Twig, LLC (collectively the "Developer "). WITNESSETH: WHEREAS, the Developer has made application to the City for approval of a plat of land (the "Land ") within the corporate limits of the City; and WHEREAS, a copy of a legal description of the Land is attached hereto as Exhibit A; and, WHEREAS, the Developer has agreed to make certain payments to the City in lieu of real property taxes affecting certain portions of the development (the "Development ") that has been proposed by the Developer for the Land in the event that the property is ever classified as tax exempt. NOW, THEREFORE, in consideration of the premises and of the mutual promises and conditions hereinafter contained, it is hereby agreed as follows: ARTICLE I REPRESENTATIONS, ETC. Section 1.01. Representation by the City. The City makes the following representations as the basis for its undertakings herein: (a) The City is a municipal corporation duly organized and existing under the laws of the State of Minnesota. (b) The execution, delivery and performance of this Agreement by the City does not violate any agreement, law, rule, regulation or any court order or judgment in any litigation to which the City is a party or by which it is bound. (c) The City has been duly authorized to enter into this Agreement and to perform the terms hereof. Section.102. Representations by the Developer. The Developer makes the following representations, warranties and covenants: (a) The Developers are corporations duly organized and existing. Commercial Partners Title, LLC 200 South Sixth Street Suite 1300 Minneapolis, MN 55402 ' i tCd IeI jg GL 4 (b) There is no litigation pending, or to the best of its knowledge threatened, against the Developer affecting its ability to develop and operate the Development or to carry out the terms of this Agreement. ARTICLE II TAX EXEMPTION Section 2.01. Exempt Status. The Developer shall have the right, at any future time, following or during the construction of portions of the Development, to apply for exemption for some or all of the Development from real property taxation in accordance with present or future applicable Minnesota law, and the City agrees to acquiesce in such application, providing the Developer is not then in default hereunder. ARTICLE III PAYMENT FOR CITY SERVICES Section 3.01. City Services. The City hereby agrees to provide the Developer with all of the services that it provides to property owners and the public in general within the City limits, including without limitation police protection and fire protection services (referred to generally as "Municipal Services "). Section 3.02. Payment for Municipal Services. In each calendar year in which no property taxes are payable with respect to any portion of the Development because of a granted exemption, the Developer shall make a payment in lieu of taxes to the City equal to the amount the City and Independent School District 834 would have received if that portion of the Development inclusive of real estate and improvements thereto (the "Exempt Property ") were not exempt from property taxation and the market value of the Exempt Property was determined in accordance with the provisions hereof. The Development and the City stipulate and agree that such amount is fair compensation for the Municipal Services. Section 3.03. Computation of Payment. The City Administrator /Clerk/Treasurer shall compute the amount of the required payment annually and advise the Developer of the amount due in such year and of the manner in which such amount was computed as early as practicable. The computation shall be completed by the City for the current year by March 15 and calculated in accordance section 3.04 and invoiced no later than March 31. The payment shall be made in two equal installments due on May 15 and October 15 of each year, or on such other dates as are established from time to time by law for the payment of ad valorem property taxes in Minnesota. In the event payment is not made when due, the Developer shall also pay penalties and interest computed as provided in Minnesota Statutes, as amended from time to time, for delinquent property tax payments. The aggregate annual payment shall be the product of the market value of the Exempt Property as of January 2 of the year next preceding the year for which the payment amount is being computed and determined in accordance with the following Sections 3.04 through 3.07, the local tax rate for the City and Independent School District 834 determined in accordance with the provisions of Chapter 275, as amended, of Minnesota Statutes, and the class rate applicable to the Exempt Property determined in accordance with the provisions of Minn. Stat. §273.13, as amended. The computation of the tax due shall comply with the format established by the City of Oak Park Heights Finance Department. Section 3.04. Market Value. The Developer and the City acknowledge that the Washington County Assessor determines the market value of tax exempt properties in accordance with the provisions of Minn. Stat. §272.18. For purposes of this Agreement, the market value of the Exempt Property as of the date it achieves tax exemption as determined by the Washington County Assessor. In the event the Washington County Assessor has not determined a new value for any given year, the value for such year shall be the value determined by the Washington County Assessor for the previous year plus average annual property appreciation based on other commercial /industrial property appreciation in the City of Oak Park Heights. Thus, for example, if the Washington County Assessor has determined the market value of the Exempt Property as of January 2, 2007, and if the Exempt Property is exempt from taxation for taxes payable in 2008 and average property appreciation for 2008 is 5% , the payment in lieu of taxes due in 2008 shall be computed with reference to the Assessor January 2, 2007 valuation plus 5% appreciation. If the assessor has not updated the value for more than one year, appreciation for each unadjusted year shall be added to the last value set. If the County Assessor continues to value the property every sixth year, as is now the practice, the new value determined by the County Assessor will be determinative notwithstanding interim years of cumulative increases. Section 3.05. Appeal of Valuation. The market value of the Exempt Property as determined by the Washington County Assessor from time to time after the Exempt Property is granted exemption may be appealed by either the Developer or the City as follows: within ninety (90) days after receiving notice of the market value of the Exempt Property as determined by the Washington County Assessor, either party ,may send notice to the other that it objects to such determination and stating its opinion as to the true market value of the Exempt Property. If the City and the Developer cannot within thirty (30) days after the date of said notice and after good faith negotiations agree upon the market value of the Exempt Property, then the market value shall be established by appraisal, as follows: If the Developer and the City agree upon the selection of an appraiser within twenty (20) days after the expiration of the thirty (30) day negotiation period, such appraiser shall be appointed to appraise the full and impartial appraisal which shall be binding on the parties. If the Developer and the City have been unable to agree upon the appointment of a single appraiser within said twenty (20) days, then each party shall within thirty (30) days following the expiration of the time given for appointment of a single appraiser designate an independent appraiser who holds the designation "MAI' and has his or her principal place of business in Washington County, Minnesota. If the objecting party shall fail to designate an appraiser and notify the other party of his/her identity within said thirty (30) days, then the market value of the Exempt Property shall be as previously determined by the Assessor. If the non - objecting party shall fail to designate an appraiser and notify the other party of his/her identify within said thirty (30) days, then the market value of the Exempt Property shall be the amount set out in the notice of objections. If both parties timely name an appraiser, then the two appraisers so named shall designate a third similarly qualified appraiser within thirty (30) days of the appointment of the last of the two appraisers named by the parties. If the two appraisers fail to name the third appraiser within said thirty (30) days, then either party shall request the chief judge of the Washington County District Court to name the third appraiser. The three appraisers shall, within sixty (60) days of the appointment of the third, determine the market value of the Exempt Property by consensus, or if no consensus can be reached, by agreement of any two of the three. The determination of the appraisers shall be binding on the parties. If the parties agree to a single appraiser, each party shall pay one -half of the appraiser's fees. If the parties cannot agree upon a single appraiser, then each party shall pay the fee of the appraiser it selects and one - half of the third appraiser's fees. For purposes hereof, the market value of the Exempt Property shall, insofar as possible and consistent with the intention of the parties as expressed herein, be based upon the statutory definitions and procedures used in the valuation of real property for purposes of determining ad valorem real property taxes in Minnesota, which may or may not approximate the actual fair market value of the Exempt Property. In the event the market value of the Exempt Property has not been determined by the appraiser(s) such that the amount of the payment due in any year cannot be calculated and timely payments made with reference thereto, the Developer shall nevertheless be required to make payments when due but the amount of such payments shall be calculated with reference to the Assessor's most recent determination of market value. If following the completion of the appraisals, the actual payment required to be made by the Developer hereunder is less than the amount heretofore paid by the Developer, the difference shall be refunded by the City to the Developer without interest within thirty (30) days If the actual payment required to be made by the Developer hereunder is more than the amount heretofore paid, the difference shall be paid by the Developer to the City without interest within thirty (30) days. Section 3.06. Legislative Changes. In the event the methods and procedures for determining property taxes are altered by the Minnesota State Legislature such that the methods and procedures set forth in this Agreement are no longer adequate to permit the parties to achieve the intent hereof as set forth in Section 3.02, the parties shall negotiate in good faith an amendment to this Agreement directed at producing a comparable result. Section 3.07. Alterations. In the event the Exempt Property is substantially altered, improved or damaged such that the market value as established pursuant to the provisions hereof is no longer a reasonably accurate estimate of the market value of the Exempt Property, the parties shall negotiate in good faith an equitable adjustment of such market value and reduce their agreement thereto in writing. ARTICLE IV MISCELLANEOUS Section 4.01. Governing Law. The parties agree that this Agreement shall be governed and construed in accordance with the laws of the State of Minnesota. Section 4.02. Time is of the Essence. Time shall be of the essence of this Agreement. Section 4.03. Counterparts. If this Agreement is executed by any number of counterparts, each which shall be an original, but all of which shall constitute one in the same instrument. Section 4.04. Interpretation; Severability. If any one or more of the provisions, sentences, phrases or words of this Agreement or any application thereof shall be held or determined to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining phrases, sentences, phrases or words of this Agreement and any other application thereof shall in no way be affected or impaired and shall remain in full force and effect. Section 4.05. Successors and Assigns. This Agreement is binding on and inures to the benefit of the successors and assigns of the parties hereto. Section 4.06. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by any party to any other party shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally to the following address: To the City: City of Oak Park Heights City Hall 8301 Valley Creek Road Oak Park Heights, Minnesota 55125 To the Developer: Timothy Nolde /on behalf of Developer P.O. BOX 2118 Stillwater, Mn 55082 or at such address as either party may, from time to time, designate in writing and forward to the other party. Section 4.07. Arbitration. Any controversy or dispute, of whatever nature, between the Developer and the City arising out of this Agreement shall be finally and conclusively settled by arbitration in accordance with the Minnesota Uniform Arbitration Act, Minn. Stat. Chapter 572, as amended. Determinations of market value are not, however, subject to arbitration except where the parties have been unable to come to an agreement thereon under circumstances described in Section 3.07 hereof All questions as to the meaning of this Section 4 or as to the arbitrability of any dispute shall be resolved by the arbitrators, and their decision on such questions shall be final and binding and not subject to judicial review, except to the extent provided in the Minnesota Uniform Arbitration Act. Section 4.08. Termination. The term of this Agreement shall commence on the effective date hereof, and shall remain in full force and effect until the effective date that the Exempt Property ceases to be exempt from real property taxation. Section 4.09. Reasonableness. The parties agree that where any consent or approval is provided for this Agreement, each will give reasonable consideration to all factors affecting such consent or approval and such consent or approval will not be unreasonably withheld or delayed. Section 4.10. Recordation. Either party hereto may record this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to , • , ii y executed on or as of the day and year first written above. i 4r / T ((ij �� i ;fit ►:i P • ' :I�� HTS B Its Mayor STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON) On this a c3y of '� 2010 before me a Notary Public, within and for said County personally appeared D Beaudet and Eric Johnson, to me personally known, being each by me duly sworn did say that they are respectively the Mayor and the Administrator of the City of Oak Park Heights, the municipal corporation named in the foregoing instrument; and that the seal affixed to said instrument is the corporate seal of said corporation, and that said instrument was signed and sealed on behalf of said municipal corporation by authority of its City Council and said Mayor and Administrator acknowledged said instrum:i: .: be the free act and deed of said municipal corporation. 0 ' ,( ��1111 / -Cfr ��� ��_ JL. . JENNIFER M. PINSKI . . , t: N PUBLICNSpTA NO ,Public ti c k.: . .: ` Jm_31,20 ' ' My Commission ExPi►� DEVELOPER OAKGREEN LLC 41101■ ( O i• f' Its Its STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON) On this �?, day of 2010, before me a Notary Public, within and for said County personally appeared. (r vim L . and — , to me personally known, being each by ifte duly sworn did say that they are respectively the C Ai/VT-rand of Oakgreen Villa, LLC, a Minnesota Limited Liability Company, named in the foregoing instrument; and that the seal affixed to said instrument is the corporate seal of said corporation, and that said instrument was signed and sealed on behalf of said company by authority of its Board of Governors and said Tintoll/u L. No de and acknowledged said instrument to be the free act and deed o'T said municipal corporation. tt . JENNIFER M. PINSKI � h ti t:; NOTARY PUBLIC - MINNESOTA �� MY Commission Expires Jan. 31, 2012 HOBAYPRO, Inc Its Its STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON) On this 4'�day of /f ikri tA-f , 2010, before me a Notary Public, within and for said County personally appeared j l a16Sfl ti L . No l c&L and , to me personally known, being each by me duly sworn did say that they are respectively the P r S Ali/l and of ANCHOBAYPRO, Inc, a Wisconsin Corporation, named in the foregoing instrument; and that the seal affixed to said instrument is the corporate seal of said corporation, and that said instrument was signed and sealed on behalf of said corporation by authority of its Board of Directors and said TI vv r,t , L , NO1tnnd acknowledged said instrument to be the free act and deed old municipal corporation. JENNIFER M. PINSKI ti _Ar -rJ ��me 'w= : ` NOTARY PUBLIC - MINNESOTA O Pu a he ,-, My Commission Expires Jan 31.2012 ` �' GREEN TWIG, LLC 11111■ 1 11 2 e i / • , ` • r • Its � f ,i 4rf Its STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON) On this „PZ day of a I , 2010, before me a Notary Public, within and for said County personally ap • - . - • Ti ✓h oTti- L L. ti o an d , to me personally known, being each by me duly sworn did say that they are respectively the ( j ( , et,li f and of Green Twig, LLC, a Minnesota Limited Liability Company, named in the foregoing instrument; and that the seal affixed to said instrument is the corporate seal of said corporation, and that said instrument was signed and sealed on behalf of said company by authority of its Board of Governors and saidl t ✓ tatt L • (3 o(cnd acknowledged said instrument to be the free act and deed o: said municipal corporation. `1 lfJllJl ll ✓ !_/ _'/_mi l f � J , ' 1111111111111. . -' �t Notary blic . - JENNIFER M. PINSKI = " ROTARY PUg� _ ' • MINNESOTA i; h4y Commission Expires Jan. 31, 2012 1 /' !!J!J!lllJllJ� Approved as orm: Mark J ling 0`7.�dm City Attorney This Instrument Drafted By: Mark J. Vierling ECKBERG, LAMMERS, BRIGGS, WOLFF & VIERLING, P.L.L.P. 1809 Northwestern Avenue Stillwater, Minnesota 55082 r • • • EXHIBIT A LEGAL DESCRIPTION Lots 1 and 2, Block 1, and Outlots A and B, Carriage House Co -Op and Assisted Living.