The URL can be used to link to this page

6-24-91 agendaCITY OF RICHFIELD, MINNESOTA Council Letter No. 167 Agenda June 24, 1991 Issue Statement: Presentation of the "Gene Jacobsen Citizen of the Year" award to Matthew Little. Background• The Richfield Human Rights Commission has selected a Citizen of the Year for the past 18 years. The award is presented to a person whose actions demonstrate an awareness and commitment to the attitudes and practices that foster human understanding, tolerance and the spirit of human relations. Recommended Motion: The City Council, in cooperation with the Human Rights Commission, should present the award to Matthew Little. Basis for Recommendation: 1. Matthew Little has made a long-standing commitment to civil and human rights dating back to the 1950's. He has served in numerous city, state and national organizations and citizen groups including the newly established University of Minnesota Human Rights Commission. Mr. Little is a 35 year member of the National Association for the Advancement of Colored People (NAACP) and serves his third term as president of the Minneapolis branch. He is also cochair of the multiracial committee, Stop the Violence, formed to combat street violence and racial tension. 2. Mr. Little has served the City Service and Charter Commissions resident. of Richfield on both the Civil in his 17 years as a City Alternative Recommendation: None. Discussion/Decision Mode: This presentation has been placed on the Presentation Section of the June 24, 1991 City Council agenda. Prior to the 7:00 p.m. Council meeting, a reception for Matthew and his friends will be held beginning at 6:30 p.m. in the Council Chambers. Respectfully submitted, James Prosser City ager JDP:ds ~~ CITY OF RICHFIELD, MINNESOTA Council Letter No. 168 Agenda June 24, 1991 Issue Statement• Adoption of a resolution approving a policy promoting the use of materials with recycled content in publicly funded construction and remodeling projects, in compliance with 1991 Hennepin County recycling grant guidelines. Background: Richfield currently participates in Hennepin County's recycling grants program which provides up to 80$ reimbursement for eligible recycling expenses. Richfield residents pay into the County recycling grants fund through waste disposal tipping fees passed on by garbage haulers. The City has chosen to participate in the recycling grants program as long as Hennepin County continues to subsidize municipal programs and Richfield residents are paying into the County recycling fund. In order to receive 80$ funding from the County for recycling activities in 1991, the City must adopt a policy giving equal or preferential consideration to materials with recycled content for incorporation in publicly funded construction and remodeling projects. Examples of such materials include recycled concrete, asphalt, plastic and other materials as developed. Publicly funded projects include facilities that are owned and/or operated by public agencies and facilities that would be owned and operated by others and supported by public funds or obligations. Recommended Motion: Adopt the attached Resolution approving a recycled product procurement policy for publicly funded construction and remodeling projects in the City of Richfield. Basis of Recommendation: Ten percent of County funding will be withheld unless the City Council adopts a procurement policy for recycled materials to be used in publicly funded construction and remodeling projects. The City has until July 1, 1991 to adopt such a policy. Alternative Recommendation: The City could choose not to adopt a recycled product procurement policy at this time; however, the City would only qualify, in turn, for 70$, rather-than 80$, funding from the County for recycling. Discussion/Decision Mode: Adoption of the resolution is recommended at this time so that the City can comply with Hennepin County's July 1 deadline. Respectfu y submitted, James rosser City an ger JDP:ds Attachments ~p-~ RESOLUTION NO. RESOLUTION APPROVING A RECYCLED PRODUCT PROCUREMENT POLICY, PROMOTING THE USE OF MATERIALS WITH RECYCLED CONTENT IN PUBLICLY FUNDED CONSTRUCTION AND REMODELING PROJECTS WHEREAS, Richfield will participate in Hennepin County's recycling grants program as long as the County continues to subsidize these programs and as long as Richfield residents must pay into the recycling fund; and WHEREAS, in order for the City to receive 80$ funding from the County for costs associated with the recycling program, the City must adopt a recycled product procurement policy for publicly funded remodeling and construction projects; and WHEREAS, such a policy will help to "close the loop" in recycling and ensure markets for materials collected for recycling; NOW, THEREFORE, BE IT RESOLVED, that. the City Council adopt a recycled product procurement policy for publicly funded remodeling and construction projects, in accordance with the 1991 Hennepin County municipal recycling grant guidelines. Passed by the City Council of the City of Richfield this 24th day of June, 1991. Martin J. Kirsch Mayor ATTEST: Thomas P. Ferber City Clerk ~R-a June 24, 1991 CITY OF RICHFIELD POLICY PROMOTING THE USE OF MATERIALS WITH RECYCLED CONTENT IN PUBLICLY FUNDED CONSTRUCTION AND REMODELING PROJECTS Goal: To ensure, wherever practical and appropriate, that materials with recycled content are used in the construction or remodeling of municipal facilities, for the City of Richfield, the City Council requires that: 1. Within twelve months, subsequent to the effective date of this policy, the Community Services Director of the City of Richfield conduct a review of existing construction or remodeling projects and service specifications to determine whether such specifications promote or exclude the use of recycled products, reusable products, or products designed to be recycled, for use by department agencies, offices, boards, and commissions. 2. In the event that such specifications prohibit or otherwise exclude the use of recycled products, such exclusions or requirements should be eliminated unless the operating department or entity can reasonably demonstrate that the recycled product would be impractical, is unproven, or would not achieve necessary performance or design standards. 3. Within the same 12 month period, all City departments and agencies must make recommendations to the Community Services Director to ensure that performance standards and specifications for products used in construction or remodeling of municipal facilities do not prohibit the use of products with recycled content. Departments are to initiate or recommend policy changes to ensure that specifications incorporate a requirement which promotes use of materials and products with recycled content wherever practical and appropriate, or they must reasonably demonstrate that either the performance requirements of the product will be compromised or that a product with recycled content is impractical or will otherwise negatively impact health, safety or operational efficiency. 4. Contractors bidding to provide products or services to the City, must meet the intent of requirements described in Paragraph 3. 5. The City will cooperate with neighboring City, County, and State governments in an effort to develop consistent, and effective procurement efforts which promote the use of recycled products in construction materials wherever practical and appropriate. ~~-3 6. All related City departments and agencies will work cooperatively to further the purposes of the Resolution. The City's economic development process will incorporate the "goal" of promoting the use of recycled material. 7. The City's Community Services Director shall submit an Annual Report, to be filed with the City Clerk, with a copy to the Clerk of the Hennepin County Board, which overviews the use of construction materials with recycled content which are used in the construction or remodeling of municipal facilities. 8t3 CITY OF RICHFIELD, MINNESOTA Council Letter No. 169 Agenda June 24, 1991 Issue Statement• Request for one•year extension to the amended conditional use permit for SuperAmerica at 7500 Lyndale Avenue. Background• On June 25, 1990, the City Council approved an amendment to the conditional use permit for SuperAmerica at 7500 Lyndale Avenue to allow construction of a new 37' 4" by 79' 4" store. Michael O'Donnell, Divisional Engineer, is requesting that a one year extension be granted in order to utilize the conditional use permit. Mr. O'Donnell stated that SuperAmerica plans to build in accordance with the original amendment as approved by Council. Recommended Motion: Approve the request for a one year extension of the amendment to the conditional use permit. Basis of Recommendation: 1. Section 545.09 Subd. 8, Time Limitations, states that a permit expires one year after it has been issued, unless upon written application of the owner of the affected land, the Board (City Council) extends the expiration date of such permit for an additional period not to exceed one year. 2. Extensions have been routinely granted to petitioners when there are no changes in the proposed development. Alternative Recommendation: Deny the extension of the conditional use permit amendment if the circumstances of the original amendment have been altered. Discussion/Decision Mode: Consideration of this item is scheduled on the consent calendar of the June 24, 1991 City Council meeting. Respe f ly submitted, James Prosser City ager JDP:ds ~. ~~ SUPERAMERICA June 10, 1991 Community Development Department/ Richfield City Council City of Richfield 6700 Portland Avenue Richfield, MN 55423-2599 Re: Conditional Use Permit for SuperAmerica at 7500 Lyndale Avenue Dear Richfield City Council Members: SuperAmerica Group, Inc. 1240 West 98th Street Bloomington, MN 55431 (612) 887-6100 (612) 887-6158 FAX Due to financial restrains, we have been unable to start the construction of a new building at 7500 Lyndale Avenue. This project has been rescheduled for the spring of 1992.. If, however, the present economy reverses itself, we could start construction as early as fall 1991. Please understand our situation and grant us a one year extension to our conditional use permit. If you have any questions, please contact me. Sincerely, ~ ©r Michael O'Donnell Divisional Engineer g8~ I . SUBSIDIARY OF ASHLAND QIL, INC. SC City of Richfield, Minnesota Council Letter No. 170 Agenda June 24, 1991 Issue Statement: Approval of subdivision waivers for the Hub West/KFC (formerly known as Kentucky Fried Chicken) property. Background• Bradley Real Estate Investment Trust and Kentucky Fried Chicken (KFC) are requesting subdivision waivers to reconfigure the KFC site along 66th Street. In addition, the previous US Swim subdivision waiver has to be corrected. The small office building lot located on 66th Street adjacent to the Soo Line would be divided in two with KFC acquiring the southerly parcel. The northerly part would be attached to the Rainbow site. The existing KFC lot would be divided by transferring a strip of land along the northerly and easterly side to Bradley for inclusion in the Rainbow site. After the divisions, KFC would end up with a parcel of land of approximately the same square footage extending to the Soo Line. On May 13, 1991, the City Council adopted a resolution approving a subdivision waiver regarding the split of the Hub West property between US Swim and the remainder of the property. The legal description given in that resolution is incorrect and a new waiver is necessary to correct the description. Recommended Motion: Approve the subdivision waivers and adopt the attached resolutions. Basis of Recommendation: 1. The resulting parcel configurations would meet City requirements. 2. The Hub West and KFC redevelopment proposal has been reviewed and approved by the City Council and HRA. 3. A yard variance along 66th Street has been granted to KFC. 4. Approval of the subdivision waivers will not interfere with the purposes of the platting regulations of Section 500.05. 5. The City Council previously approved the subdivision waiver with respect to US Swim but a correction in the legal description is necessary. Alternative Recommendation: The City Council may deny the subdivision waivers but the redevelopment project cannot go forward without such. ~ c- Discussion/Decision Mode: No public hearing is required for this matter. A decision is necessary at the June 24, 1991 meeting in order to keep the project on schedule. Respectful submitted, James Prosser City M ager JDP:ds $ ~-3 _~ _- ~ =~ _~ ~ -~ _~ _~ _~ _` _~ = c. _~ _~ PARCE EXIST. U.S. Sih'IM ~.. ~ • ' . ~`L . • .••• :•: --- PARCEL 2-- - - •-• - . .. • • : • LV~W .GROCERY - ' - -- . _• - . ~ • •• _ . caw' Ta~urrr . • • ~ / N • - • :1300 SF--,: j ' 2Q, - . - : ~~ • - .~. ,/ , - ~ . i/ ~ ~ / ~ ~~ .2 i j" za- ~__.~.._.._.~..___~_.--~ ~ j~~/ / -. X /' ,: ii ~i ~. i`' %; ~/ U S Swim Parcel not to scale ~~ ~~Iq PLANNING Mlilll Diu' ZONING ®~~~ 8 C-~} RESOLUTION NO. RESOLUTION AUTHORIZING SUBDIVISION WAIVER (HFC) WHEREAS, the City of Richfield has been requested to approve a subdivision waiver for the division of certain parcels of land legally described on Attachment One, attached hereto and hereby made a part hereof (hereafter the Subject Property); and WHEREAS, the proposed division of land for which the subdivision waiver is sought is as legally described on Attachment Two, attached hereto and hereby made a part hereof; and WHEREAS, the City has fully considered the request for approval of the subdivision waiver; and WHEREAS, the lots resulting from the proposed division will comply with the requirements of City Code, Section 515.09; and WHEREAS, the Council finds that compliance with City Code Section 500.05, Subd. 1, would result in unnecessary hardships and that failure to comply therewith will not interfere with the purposes of the platting regulations of Section 500.05. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota, as follows: 1. A waiver for the property legally described on Attachment One is hereby approved subject to the following conditions: a. All future transfer of any of the property described in Attachment One shall be by parcel or parcels described in Attachment Two. b. The applicant shall demonstrate that real estate taxes for the Subject Project which are due and payable in 1990 and prior years has been fully paid. e. .This resolution shall not be effective until the applicant has acquired title to the parcel described as Parcel One in Attachment Two. 2. Upon compliance with such conditions, city staff is authorized and directed to take any action necessary to effectuate this resolution"and to authorize the recording of conveyances complying with the requests of this resolution. Passed and adogted by the City Council of the City of Richfield, Minnesota this 24th day of June, 1991. ATTEST: Thomas P. Ferber, City Clerk Martin Kirsch, Mayor 1 ~ G- Attachment One Subject Property The. Southerly 150 feet of the Easterly 255 feet of the following described property: That part of the South 53 1/3 rods of the Southeast 1/4 of the Northwest 1/4 of Section 27, Township 28 North, Range 24, West of the 4th Principal Meridian, described as follows: Commencing at a point on the South line of the above described tract, which is 25 feet East of the Southwest corner thereof; thence North parallel with the West line of the above described tract, 660 feet; thence East parallel with the North line of said tract 303.7 feet; thence South 660 feet to a point in the South line of said tract, which is 302.9 feet East of the point of beginning; thence West 302.9 feet to the point of beginning, according to the United States Government Survey thereof and situated in Hennegin County, Minnesota. ~ C -;~ Attachment Two Page 1 of 3 Besulting Parcels Parcel One All except the south 43.00 feet of the SE 1/4 of the NW 1/4 of Section 27, Township 28, Range 24, Hennepin County, lying easterly of a line drawn parallel with and 282.00 feet easterly of, as measured perpendicular to, the southerly extension of the westerly line of Lot 3, Block 1, RICHFIELD HUB SUPERBLOCK, as platted and of record in the office of the County Recorder, lying southerly of the south line of said Lot 3 and lying westerly of the following described line: Commencing at the southwest corner of said SE 1/4 of the NW 1/4; thence easterly along the southerly line of said SE 1/4 of the NW 1/4 a distance of 25.00 feet; thence northerly, parallel with the westerly line of said SE 1/4 of the NW 1/4, a distance of 660.00 feet; thence easterly, parallel with the north line of the South 53 1/3 Rods of said SE 1/4 of the NW 1/4, a distance of 303.70 feet to the point of beginning of the line to be described; thence southerly to a point on said southerly line, distant 327.90 feet easterly of the point of commencement and there terminating. Together with: All that part of the SE 1/4 of the NW 1/4 of Section 27, Township 28, Range 24, Hennepin County, described as follows: Beginning at the most easterly southwest corner of Lot 3, Block 1, RICHFIELD HUB SUPERBLOCK, according to the recorded plat thereof; thence north 89 degrees 59' 52" East along the southerly line of said Lot 3 to the intersection with a line drawn parallel with and 282.00 feet easterly of, as measured perpendicular to the southerly extension of the most westerly line of said Lot 3; thence South 0 degrees 20' 18" West along said parallel line to the north line of the South 141.56 feet of said SE 1/4 of the NW 1/4; thence South 89 degrees 59' 52" West along said north line of the South 141.56 feet to a point that bears south 0 degrees 25' 38" East from the point of beginning; thence to the point of beginning. Together with: That part of the SE 1/4 of the NW 1/4 of Section 27, Township 28, Range 24, Hennepin County, described as follows: Commencing at the intersection of the centerline of the Minneapolis, Northfield and Southern Railway and the southerly line of said SE 1/4 of the NW 1/4; thence North 89 degrees 59' 52" East, along said southerly line a distance of 25.00 feet; thence North 0 degrees 20' 18" East, parallel with said centerline a distance of 43.00 feet; thence North 89 degrees 59' 52" East parallel with said southerly line a distance of 282.00 feet to the point of beginning of the land to be described; thence North 0 degrees 20' 18" East, parallel with said centerline a distance of 27.00 feet; thence South 89 degrees 59' 52" West, parallel with said centerline a distance of 27.00 feet; thence South 89 degrees 59' 52" West, parallel with said southerly line a distance of 15.00 feet; thence South 0 degrees 20' 18" West, parallel with said centerline a distance of 27.00 feet; thence North 89 degrees 59' 52" ~~ ~ ~ Attachment Two Page 2 of 3 East, parallel to said southerly line a distance of 15.00 feet to the point of beginning. Parcel two The Southerly 150 feet of the Easterly 255 feet of the following described property: That part of the South 53 1/3 rods of the Southeast 1/4 of the Northwest 1/4 of Section 27, Township 28 North, Range 24, West of the 4th Principal Meridian, described as follows: Commencing at a point on the South line of the above described tract, which is 25 feet East of the Southwest corner thereof; thence North parallel with the West line of the above described tract, 660 feet; thence East parallel with the North line of said tract 303.7 feet; thence South 660 feet to a point in the South line of said tract, which is 302.9 feet East of the point of beginning; thence West 302.9 feet to the point of beginning, according to the United States Government Survey thereof and situated in Hennepin County, Minnesota. except the following: All except the south 43.00 feet of the SE 1/4 of the NW 1/4 of Section 27, Township 28, Range 24, Hennepin County, lying easterly of a line drawn parallel with and 282.00 feet easterly of, as measured perpendicular to, the southerly extension of the westerly line of Lot 3, Block 1, RICHFIELD HUB SUPERBLOCK, as platted and of record in the office of the County Recorder, lying southerly of the south line of said Lot 3 and lying westerly of the following described line: Commencing at the southwest corner of said SE 1/4 of the NW 1/4; thence easterly along the southerly line of said SE 1/4 of the NW 1/4 a distance of 25.00 feet; thence northerly, parallel with the westerly line of said SE 1/4 of the NW 1/4, a distance of 660.00 feet; thence easterly, parallel with the north line of the South 53 113 Rods of said SE 1/4 of the NW 1/4, a distance of 303.70 feet to the point of beginning of the line to be described; thence southerly to a point on said southerly line, distant 327.90 feet easterly of the point of commencement and there terminating. and except the following: All that part of the SE 1/4 of the NW 1/4 of Section 27, Township 28, Range 24, Hennepin County, described as follows: Beginning at the most easterly southwest corner of Lot 3, Block 1, RICHFIELD HUB SUPERBLOCK, according to the recorded plat thereof; thence north 89 degrees 59' 52" East along the southerly line of said Lot 3 to the intersection with a line drawn parallel with and 282.00 feet easterly of, as measured perpendicular to the southerly extension of the most westerly line of said Lot 3; thence South 0 degrees 20' 18" West along said parallel line to the north line of the South 141.56 feet of said SE 1/4 of the NW 1/4; thence South 89 degrees 59' 52" West along said north line of the South 141.56 feet to a point that bears south 0 ~~-~ Attachment Two Page 3 of 3 degrees 25' 38" East from the point of beginning; thence to the point of beginning. and except the following: That part of the SE 1/4 of the NW 1/4 of Section 27, Township 28, Range 24, Hennepin County, described as follows: Commencing at the intersection of the centerline of the Minneapolis, Northfield and Southern Railway and the southerly line of said SE 1/4 of the NW 1/4; thence North 89 degrees 59' 52" East, along said southerly line a distance of 25.00 feet; thence North 0 degrees 20' 18" East, parallel with said centerline a distance of 43.00 feet; thence North 89 degrees 59' S2" East parallel with said southerly line a distance of 282.00 feet to the point of beginning of the land to be described; thence North 0 degrees 20' 18" East, parallel with said centerline a distance of 27.00 feet; thence South 89 degrees 59' S2" West, parallel with said centerline a distance of 27.00 feet; thence South 89 degrees 59' 52" West, parallel with said southerly line a distance of 15.00 feet; thence South 0 degrees 20' 18" West, parallel with said centerline a distance of 27.00 feet; thence North 89 degrees 59' S2" East, parallel to said southerly line a distance of 15.00 feet to the point of beginning. Note: Parcel designations are for convenience only and do not constitute an integral part of the legal descriptions. ~~ RESOLUTION NO. RESOLUTION AUTHORIZING SUBDIVISION WAIVER (Grosz) WHEREAS, the City of Richfield has been requested to approve a subdivision waiver for the division of certain parcels of land legally described on Attachment One, attached hereto and hereby made a part hereof (hereafter the Subject Property); and WHEREAS, the proposed division of land for which the subdivision waiver is sought is as legally described on Attachment Two, attached hereto and hereby made a part hereof; and WHEREAS, the City has fully considered the request for approval of the subdivision waiver; and WHEREAS, the lots resulting from the proposed division will comply with the requirements of City Code, Section 515.09; and WHEREAS, the Council finds that compliance with City Code Section 500.05, Subd. 1, would result in unnecessary hardships and that failure to comply therewith will not interfere with the purposes of the platting regulations of Section 500.05. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota, as follows: 1. A waiver for the property legally described on Attachment One is hereby approved subject to the following conditions: a. All future transfer of any of the property described in Attachment One shall be by parcel or parcels described in Attachment Two. b. The applicant shall demonstrate that real estate taxes for the Subject Project which are due and payable in 1990 and prior years has been fully paid. c. This resolution shall not be effective until the applicant has acquired title to the parcel described as Parcel One in Attachment Two. 2. Upon compliance with such conditions, city staff is authorized and directed to take any action necessary to effectuate this resolution and to authorize the recording of conveyances complying with the requests of this resolution. Passed and adopted by the City Council of the City of Richfield, Minnesota this 24th day of June, 1991. ATTEST: Thomas P. Ferber, City Clerk Martin Kirsch, Mayor 1 ~~-~C7 Attachment One Subject Property The South 183 feet of the East 47.9 feet of the West 72.9 feet of the Southeast Quarter (SE 1/4) of the Northwest Quarter (NW 1/4), except road, Section 27, Township 28, Range 24, Hennepin County, Minnesota. ~c ~1 Attachment Two Resulting Parcels Parcel One That part of the SE 1/4 of the NW 1/4 of Section 27, Township 28, Range 24, Hennepin County described as follows: Commencing at the intersection of the southerly extension of the westerly line of Lot 3, Block 1, Richfield Hub Superblock, as platted and of record in the office of the County Recorder and the southerly line of said SE 1/4 of the NW 1/4; thence North 0 degrees 20' 18" East along said southerly extension a distance of 183.00 feet to the most westerly southwest corner of said Lot 3 and the actual point of beginning of the land to be described; thence North 89 degrees 59' 52" East along the southerly line of said Lot 3 a distance of 37.24 feet to the intersection with a line drawn parallel with and 72.90 feet easterly of as measured perpendicular to, the westerly line of said SE 1/4 of the NW 1/4; thence South 0 degrees 32' 59" West along said parallel line to the north line of the South 141.56 feet of said SE 1/4 of the NW 1/4; thence westerly, along said north line of the South 141.56 feet to said southerly extension of the westerly line of Lot 3; thence northerly along said southerly extension to the point of beginning. Parcel Two The South 183 feet of the East 47.9 feet of the West 72.9 feet of the Southeast Quarter (SE 1/4) of the Northwest Quarter (NW 1/4), except road, Section 27, Township 28, Range 24, Hennepin County, except the following described tract: That part of the SE 1/4 of the NW 1/4 of Section 27, Township 28, Range 24, Hennepin County described as follows: Commencing at the intersection of the southerly extension of the westerly line of Lot 3, Block 1, Richfield Hub Superblock, as platted and of record in the office of the County Recorder and the southerly line of said SE 1/4 of the NW 1/4; thence North 0 degrees 20' 18" East along said southerly extension a distance of 183.00 feet to the most westerly southwest corner of said Lot 3 and the actual point of beginning of the land to be described; thence North 89 degrees 59' 52" East along the southerly line of said Lot 3 a distance of 37.24 feet to the intersection with a line drawn parallel with and 72.90 feet easterly of as measured perpendicular to, the westerly line of said SE 1/4 of the NW 1/4; thence South 0 degrees 32' 59" West along said parallel line to the north line of the South 141.56 feet of said SE 1/4 of the NW 1/4; thence westerly, along said north line of the South 141.56 feet to said southerly extension of the westerly line of Lot 3; thence northerly along said southerly extension to the point of beginning. Note: Parcel designations are for convenience only and do not constitute an integral part of the legal descriptions. gC-lam RESOLUTION NO. RESOLUTION AUTHORIZING SUBDIVISION WAIVER (U.S. SWIM) WHEREAS, the City of Richfield has been requested to approve a subdivision waiver for the division of certain parcels of land legally described on Attachment One, attached hereto and hereby made a part hereof (hereafter the Subject Property); and WHEREAS, the proposed division of land for which the subdivision waiver is sought is as legally described on Attachment Two, attached hereto and hereby made a part hereof; and WHEREAS, the City has fully considered the request for approval of the subdivision waiver; and WHEREAS, the lots resulting from the proposed division will comply with the requirements of City Code, Section 515.09; and WHEREAS, the Council finds that compliance with City Code Section 500.05, Subd. 1, would result in unnecessary hardships and that failure to comply therewith will not interfere with the purposes of the platting regulations of Section 500.05. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota, as follows: 1. Resolution No. 7740 adopted by the City Council on May 13 , 1991 is repealed. 2. A waiver for the property legally described on Attachment One is hereby approved subject to the following conditions: a. All future transfer of any of the property described in Attachment One shall be by parcel or parcels described in Attachment Two. b. The applicant shall demonstrate that real estate taxes for the Subject Project which are due and payable in 1990 and prior years has been fully paid. c. This resolution shall not be effective until the applicant has acquired title to the Subject Property. 3. Upon compliance with such conditions, city staff is authorized and directed to take any action necessary to effectuate this resolution and to authorize the recording of conveyances complying with the requests of this resolution. 1 ~ ~- ~~ Passed and adopted by the City Council of the City of Richfield, Minnesota this 24th day of June, 1991. - Martin Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk 2 ~~-~~ Attachment One Subject Property Lot 3, Block 1, Richfield Hub Superblock as platted and of record in the office of the County Recorder, Hennepin County. ~~-~5 Attachment Two Resulting Parcels Parcel One All that part of Lot 3, Block 1, Richfield Hub Superblock as platted and of record in the office of the County Recorder, Hennepin County, Minnesota, lying northerly of the following described line: Commencing at the most westerly northwest corner of said Lot 3; thence South 0 degrees 20' 18" West along the westerly line of said Lot 3 a distance of 14.89 feet to the point of beginning; thence South 89 degrees 29' 19" East a distance of 118.51 feet; thence North 45 degrees 32' 26" East a distance of 28.11 feet; thence South 89 degrees 21' 44" East a distance of 158.31 feet to the east line of said Lot 3 and there terminating. Parcel Two All that part of Lot 3, Block 1, Richfield Hub Superblock as platted and of record in the office of the County Recorder, Hennepin County, Minnesota, lying southerly of the following described line: Commencing at the most westerly northwest corner of said Lot 3; thence South 0 degrees 20' 18" West along the westerly line of said Lot 3 a distance of 14.89 feet to the point of beginning; thence South 89 degrees 29' 19" East a distance of 118.51 feet; thence North 45 degrees 32' 26" East a distance of 28.11 feet; thence South 89 degrees 21' 44" East a distance of 158.31 feet to the east line of said Lot 3 and there terminating. Note: Parcel designations are for convenience only and do not constitute an integral part of the legal description. ~D CITY OF RICHFIELD, MINNESOTA Council Letter No. 171 Agenda June 24, 1991 Issue Statement• Award of Contract for the 1991 Sealcoating Project. Background• In 1979, the City of Richfield began a phased project of roadway improvement by sealcoating all of the City's bituminous streets. A thin coat of emulsified oil is applied, then covered with rock. This process rejuvenates the surface of the street, and prevents it from deteriorating. Allied Blacktop was the successful bidder for the 1987 project with a bid price of 565,263.70. Bituminous Roadways was the successful bidder for the 1988 project with a bid price of $69,590.72, and again was the contractor for the 1989 project with a low bid of 5118,742.40. Allied Blacktop was again the successful bidder for the 1990 project with a low bid of 598,467.64. There have been some problems with sealcoat projects in Richfield and other metropolitan communities. The pebbles have stripped off of some sections of the streets. The stone then accumulates on the curbline and boulevards. Residents then complain about lawns. In an attempt to reduce this stripping problem, this contract uses buckshot or small round pebbles in the residential areas instead of larger chip stones such as those used on 67th Street between Nicollet Avenue and Portland Avenue. This year's project is smaller (less than half) than recent projects. A Minnesota Department of Transportation study now underway will hopefully provide guidance on future sealcoat projects. Richfield staff is contributing to this study. A bid opening was held June 14, 1991 with the following results: CompanX Base Bid Bid Alternate "A" Bituminous Roadways, Inc. 522,043.81 $36,980.40 Allied Blacktop, Inc. 23,419.54 39,850.06 AsTech Corporation 28,409.20 47,725.62 The base bid includes New Ford Town and the Golf Course parking lots and driveways. Bid Alternate "A" includes the base bid plus the streets between Diagonal Boulevard and 66th Street from Bloomington to 12th Avenue, plus the City Hall parking lot. Recommended Motion: Accept the bid minutes/tabulation; accept Bid Alternate "A" and award a contract to Bituminous Roadways, Inc. in the sum of $36,980.40. Basis of Recommendation: 1. Bituminous Roadways, Inc. is the lowest responsible bidder. $D-1 2. The 1991 Street Division operating budget contains $65,000 for the contractor's services on this project. Some of these funds will be used to perform cracksealing on the project. Contractor's bid on estimated quantities and costs will be monitored. Alternative Recommendation: Council may choose to reject all bids and direct staff to obtain new bids. However, the prices received for this work are extremely good, and staff does not believe we will receive any lower bids. Discussion/Decision Mode: Staff would like to schedule this work as soon as possible, to be completed by August 1, 1991. Council approval at this time will facilitate completion by the specified deadline. Respectf ly submitted, James Prosser City nager JDP:ds Attachment ~-a CITY OF RICHFIELD, MINNESOTA Bid Opening June 14, 1991 11:00 A.M. Bituminous Sealcoating Construction Bid No. 91-11 Pursuant to requirements of Resolution No. 1015, a meeting of the Administrative Staff was called by Thomas P. Ferber, City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for bituminous sealcoating construction, bid no. 91-11, as advertised in the official newspaper on May 22, 1991. Present: Thomas Ferber, City Clerk Byron Wallace, Community Development Director Cheryl Krumholz, City Manager Representative Roxi Braa, Administrative Aide The following bids were submitted and read aloud: VENDOR Allied Blacktop Inc. Maple Grove Bituminous Roadways Minneapolis Astech Corporation St. Cloud BID SECURITY 5$ Bid Bond 5$ Bid Bond 5$ Bid Bond BASE: ALT. "A": BASE: ALT. "A": AMOUNT $23,419.54 $39,850.06 $22,043.81 $36,980.40 BASE: $28,409.20 ALT. "A": $47,725.62 The City Clerk announced that the bids would be tabulated and considered at the June 24, 1991 City Council Meeting. Thomas P. Ferber City Clerk 9 City of Richfield, Minnesota Council Letter No.172 Agenda June 24, 1991 Issue Statement: Consideration of access agreement with Bradley Real Estate Trust. Background• The City Council approved the issuance of a conditional use permit and a final development plan for Hub West on May 13, 1991. The approval was conditioned on the owners entering into a contractual agreement with the City to take corrective action if the level of service for traffic at 66th Street and the vacated Pillsbury Avenue is reduced to an unacceptable level. A proposed agreement between Bradley and the City is attached which sets forth a method of problem identification and remediation. Recommended Motion: Approve the agreement with Bradley Real Estate Trust regarding review and possible correction of access. Basis of Recommendation: 1. The conditional use permit issued May 13, 1991 required an access agreement. 2. The Agreement provides: A. Problem identification by City. B. Sets parameters based on traffic signal cycle failures and increased number of accidents. C. Five year period of review. D. Remediation costs paid by Bradley. Alternative Recommendation: 1. The Council could decide not to approve the agreement. 2. The Council could instruct staff to renegotiate the agreement with respect to certain provisions. Discussion/Decision Mode: No public hearing is necessary for this action. Consideration at the June 24, 1991 meeting will satisfy the condition in the conditional use permit. Respect lly submitted, Jam s Prosser Cit anager JDP:ds ~-i RESOLUTION NO. AGREEMENT REGARDING REVIEW AND POSSIBLE CORRECTION OF ACCESS THIS AGREEMENT, made and entered into as of this day of 1991, by and between the City of Richfield, a Minnesota municipal corporation ("City") and Bradley Real Estate Trust, a Massachusetts business trust ("Bradley"). WITNESSETH: WHEREAS, on May 13, 1991, the City Council of the City did approve the issuance of a conditional use permit and a final development plan for the development of an area generally referred to as Hub West; and WHEREAS, such approval was conditioned, inter alia, on a requirement that Bradley enter into an agreement which would call for the taking of corrective action regarding the on-site configuration of the entry-exit point at 66th Street and Pillsbury Avenue in the event that traffic ingress and egress problems occurred at that point resulting from the design; and WHEREAS, Bradley and representatives of the City have reviewed such condition and have agreed upon a method and a process for identifying and resolving traffic problems at such point should they occur. NOW, THEREFORE, BE IT RESOLVED in consideration of the mutual covenants and promises hereinafter contained, the parties hereto agree as follows: ~-~ 1. 2. 3. 4. 5. Problem Identification A problem at the intersection of 66th Street and Pillsbury Avenue will be deemed to exist if: a) the traffic signal at 66th Street and Pillsbury Avenue experiences a maximum of seventy percent cycle failures. Cycle failures occur when a signal cannot clear all waiting vehicles during a single cycle, or b) the intersection of 66th Street and Pillsbury Avenue experiences eight or more accidents in one twelve-month period. Accidents occurring in the parking lot associated with the access drive and on 66th. Street within 225 feet of the traffic signal will be included in the computation of intersection accidents. Time Period For Problem Identification The City shall conduct such inspection and analysis of traffic, as it deems appropriate, commencing not sooner than two months after the Rainbow grocery store is opened at Hub West and continuing thereafter for not longer than 60 months. Problem Identified If, during the period described City determines that a problem, exists, it shall provide Bradley such determination. Such notice studies and reports which formed conclusion. in paragraph 2 above, the as in paragraph 1 above with written notice of shall include copies of all the basis for such Remediation Plan Following such written notice, Bradley shall have not more than 90 days (unless extended by mutual agreement) to submit to the City its proposal for correcting the problem identified by the City. During the said 90-day period, the City and Bradley agree to meet, discuss and cooperate in good faith in an effort to agree upon a mutually acceptable remediation plan. If the City approves Bradley's proposed remediation plan, Bradley shall have a reasonable period of time to implement the steps necessary to accomplish such plan. Unless the parties agree otherwise, the cost of implementation shall be borne by Bradley. Failure to Agree If, within such 90-day period (or agreed upon extension) Bradley and the City are unable to agree on a remediation plan, then the City shall have not more than 60 days to submit to Bradley the design which it believes will correct the traffic problem. Bradley shall then have 30 days to determine whether to accept or reject the plan. g-3 6. Effect of Acceptance If Bradley accepts the City's design, it shall have a reasonable time to implement the plan. Unless the parties agree otherwise, the entire cost of implementation shall be borne by Bradley. 7. Effect of Rejection If Bradley rejects the City's design, the City shall have the right to enter upon Hub West and to take the actions which are necessary to implement the rejected plan, provided, however, that such implementation activities shall not unnecessarily interfere with the ability of Bradley or its tenants to conduct business at Hub West, or KFC to conduct business at the parcel located south of Hub West. Bradley agrees that it will pay all costs incurred by the City in connection with implementing the rejected plan. Such payment shall be made not later than 30 days following written notification of such costs to Bradley by the City. 8. Indemnification If the City proceeds in accordance with the provisions of paragraph 7 above, Bradley agrees that it will defend, indemnify and hold harmless the City, its officers, agents or employees from any claim or cause of action of whatever nature occasioned by the entry, implementation or design of the rejected plan provided, however, that such shall not apply to the extent that the City, its officers, agents or employees are determined to be negligent in connection with the entry, implementation or design of the rejected plan. 9. Successors and Assigns This agreement is intended to be binding upon and for the benefit of the parties and their respective successors and assigns. Each party shall be obligated to fully inform any proposed successor and assign of this agreement and that it will benefit and bind them. IN WITNESS WHEREOF, the parties hereto have set their hands and seals as of the day and year first above written. q-'~ THE CITY OF RICHFIELD By Its Mayor By Its City Manager BRADLEY REAL ESTATE TRUST By Its /~ CITY OF RICHFIELD, MINNESOTA Council Letter No. 173 Agenda June 24, 1991 Issue Statement• Request for a public dance license for Lariat Lanes, 6320 Penn Avenue, for the month of July. Background: The owner of Lariat Lanes submitted an application on June 17, 1991 for a public dance license. These dances are scheduled for each Friday and Saturday evening in July beginning on the 6th. They are scheduled to begin at 7:00 p.m. and end promptly at 12:00 a.m. Dancing to a disc jockey and moonlight bowling will be the only activities taking place. Staff has met with the owner of the establishment and reviewed all requirements with him thoroughly. Although the owner does have a 3.2 non-intoxicating malt liquor license for the establishment, there will be no beer served to anyone during these dances. The owner appears to be sensitive to this issue. City ordinance 1110.03 requires that an officer be present at all public dances with that cost being incurred by the owner. Arrangements will be made for an officer to be present for each evening's activities. Recommended Motion: Staff recommends approval of a public dance license for Lariat Lanes, 6320 Penn Avenue, for July 6 & 7, 13 & 14, 20 & 21, and 27 & 28 beginning at 7:00 p.m. and ending at 12:00 a.m. Basis for Recommendation: 1. The owner has submitted the required information and paid the fees. 2. The owner has met with Public Safety staff and has agreed to all the requirements of the public dance ordinance. Alternative Recommendation: 1. The Council could decide not to approve the public dance license which would mean that no dancing could take place on the premises. Discussion/Decision Mode: The request for a public dance for their consideration at this license is presented to Council time. Respec lly submitted, James Prosser City Manager JDP:ds CITY OF RICHFIELD, MINNESOTA Council Letter No. 174 Agenda June 24, 1991 Issue Statement: Evaluative comments regarding the establishment and preservation of parking and access rights for Hub East, Hub West and KFC. Back~c round The HRA has recently approved a Contract for Private Development with Bradley Real Estate Trust. Bradley is to be the owner of Hub West (with the exception of KFC). They currently own Hub East. A provision in the contract calls for the HRA to approve recordable agreements which establish and preserve reciprocal parking and access rights within Hub West, Hub East and KFC. Prior to approval by the HRA, the City Council is to have an opportunity to comment on 'the agreements which were prepared by Bradley's legal counsel. The two agreements are attached for your review: reciprocal easement agreement, and, the declaration of covenants and restrictions and grant of easements. The Reciprocal Easement Agreement The agreement governs the relationship between KFC and Bradley with respect to their property. Attached to the agreement is the legal description for the three sites included (Exhibits A and B) and Exhibit C which is a map which indicates the "common area" on which the agreement places restrictions. The maps marked Exhibit D indicates the area in which no additional buildings may be constructed ("no-change area"). The major points of the agreement follow: - Within the common area, the tenants, business vendors, customers and employees have free movement. They may enter as pedestrians or in vehicles (broadly defined). Vehicles may be parked by these people anywhere within the common area designated for parking. - Utilities needed to operate businesses may be located and maintained herein. Acceptable procedural rules are described for installation and maintenance. - Only temporary barriers may be constructed and only after agreement in writing amongst the parties. - Bradley is responsible for providing maintenance services including striping of the parking area as shown on the Exhibit C. Both parties pay a pro rated share of the maintenance cost based on building square footage. - KFC is solely responsible for the maintenance of its property outside the common area. - KFC and Bradley are responsible for claims due to injury and death on property they own and to hold the other party harmless from claims. - If one party fails to perform his obligation, the other party may perform that obligation and charge the cost to the defaulting party (when snow exceeds 1.5 inches in depth, it must be plowed within two hours). - A portion of the parking designated on Exhibit C will be 30 minute parking only (note location between KFC and Rainbow). - The agreement continues regardless of the tenancies and ownership of the property. Declaration of Covenants The Declaration is to be signed by Bradley. It encompasses all property owned or to be owned by Bradley (excludes KFC) and binds not only Bradley to the agreement but any other parties who may take title to any portion of the property in the future. There are three parcels; Parcel A contains US Swim, Parcel B contains Rainbow, and Parcel C contains Hub East. - An easement is created across the area of the three parcels, without buildings, for parking, pedestrian and vehicular traffic. - Ingress and egress is guaranteed for passenger vehicles and delivery trucks. - Restrictions are placed on the installation of barriers along the boundaries of the three parcels which would impede movement of vehicles and pedestrians. - Certain types of uses are prohibited on the three parcels so long as Rainbow is a tenant. These uses include a bowling alley, theater, and night club for example. Other grocery and food stores are also prohibited. - The joint use and maintenance of a sign by Rainbow and US Swim is provided. - Exterior site maintenance is the responsibility of the owner of each property. The parking site plan may not be changed by any owner without the consent of all owners (a change would also require the consent of the City under the zoning code). - Enforcement of the restrictions is provided for as well as insurance requirements. i~-a - Under certain conditions rebuilding is required if a building is damaged. Recommended Action: It is recommended that the City Council provide comments related to the agreements. Basis for Recommendation: 1. The Contract for Private Development approved by the HRA requires the agreements to be submitted to the City Council for review and comment. 2. Council comments will be combined with the results of staff review which is now underway. The revised document will be submitted to the HRA and they will be requested to approve it. 3. The agreements when finalized and recorded will prevent future parking disagreements amongst the adjoining property owners. Alternative Recommendation: Decide not to make evaluative comments. Discussion/Decision Mode: To permit the project to proceed in a timely manner, action should be taken at the June 24 Council meeting. Respect lly submitted, Jame ~D. Prosser City Manager JDP:ds i ~ -3 RECIPROCAL EASEMENT AGREEMENT THIS AGREEMENT is made this day of , 1991, by and between the Trustees of the Bradley Real Estate Trust, a Massachusetts business trust (hereinafter referred to as "Bradley") and KFC National Management Company, a Delaware corporation (hereinafter referred to as "KFC"), W I T N E S S E T H WHEREAS, Bradley is the fee owner of real property located in the City of Richfield, County of Hennepin, State of Minnesota, legally described on Exhibit A attached hereto (hereinafter referred to as "Parcel A"); and WHEREAS, KFC is the fee owner of real property located in the City of Richfield, County of Hennepin, State of Minnesota, legally described on Exhibit B attached hereto (hereinafter referred to as "Parcel B"); and WHEREAS, Bradley and KFC are desirous of entering into a Reciprocal Easement Agreement allowing the free flow of traffic between Parcels A and B and further setting out reciprocal parking rights between Parcels A and B; and WHEREAS, Exhibit C hereto sets out the site plan of Parcels A and B, and the crosshatched area is hereinafter referred to as "the common areas"; and WHEREAS, Exhibit D hereto sets out the site plan of Parcels A and B, and the crosshatched areas are hereinafter referred to as "the no-change" area; and 11-~- WHEREAS, Bradley and KFC are desirous of setting forth their agreement with respect to the maintenance of the common areas; NOW, THEREFORE, in consideration of the mutual agreements, covenants, and undertakings herein contained, the parties covenant and agree for themselves, their successors, and assigns, as follows: 1. Reciprocal Easement. Bradley and KFC and their respective tenants, subtenants, licensees, business invitees, customers, agents, and employees shall, except as set forth herein, have the right to use, free of charge (unless the parties hereto agree in writing to the contrary or governmental authorities require a charge be made) Parcels A and B for the passage of pedestrians and/or vehicles of all kinds, nature, and description on, through, and over the entrance road, pedestrian entrances, curb cuts, and other means of ingress and egress to and from any public road, street, or right of way abutting the common areas within the areas designated for the same and the parking of motor vehicles of all kinds, nature, and description within the areas designated for parking. 2. Utility Easements. Bradley and KFC each shall have the right to install, maintain, repair, augment and/or modify utility lines, including but not limited sanitary sewers, storm sewers, water lines, gas lines, electric lines, and telephone lines on and under the common areas, provided, however, any party undertaking any such work on the common areas, which will interfere with the operation of the other party's property, shall (a) notify the other party in advance, (b) perform the work as -2- r~-~ expeditiously as practicable and with the least practicable interference with traffic, (c) repair the common areas and any other property of the other party disturbed by the work to a condition at least as good as that existing prior to performance of the work, (d) hold the other party harmless for damages to persons or property caused by the execution of the work. 3. Barriers Obstructions Etc No fences, barriers, or other obstructions shall be erected upon the common areas so as to prevent the passage of vehicles or pedestrians or prevent the parking of vehicles except as may be agreed to in writing by the parties or such temporary barriers as may be erected from time to time for promotional activities or to prevent the accruing of public rights in the common areas. 4. Maintenance and Operation of Common Areas. After completion of construction of the parking facilities on the common areas, Bradley shall thereafter continually maintain, keep in good order and repair, replace and operate the common areas.. Included herein shall be the obligation to keep the same compatibly striped and within practical limitations, clear and free of snow, ice, rubbish, and obstructions of every kind and nature, and the providing of adequate drainage and landscaping thereon. The striping of the parking spaces and the drives and pedestrian ways in the common areas as shown on Exhibit C shall not be materially changed by either of the parties hereto without the written consent of the other party. In addition, neither Bradley nor KFC may build any structure in the no-change area set forth on Exhibit D. Bradley shall provide for outside lighting -3- 11-~ far the common areas. It is anticipated that the Hub West Shopping Center will be open 24 hours per day. In addition, Bradley will maintain the common areas, including operation, maintenance, repair, and replacement of the common areas. Each party shall pay its proportionate share of the costs and expenses so incurred. The proportionate. share of KFC shall be a fraction, the numerator of which is the leasable first floor square feet contained in the buildings on its parcel and the denominator of which is the total of the leasable first floor square foot as contained on the KFC parcel and the buildings located on the property owned by Bradley commonly known as the Hub West Shopping Center (the "Hub West parcel") which includes the property described on Exhibit A hereof, except Lot 2, Block 1, Richfield Hub Superblock, Hennepin County, Minnesota. Bradley's proportionate share shall be a fraction, the numerator of which is the leasable first floor square feet contained in the building on the Hub West parcel and the denominator of which is the same as that used to determine the KFC proportionate share. KFC shall be responsible for maintaining the areas of its parcel not included in the common areas at its own cost and expense. 5. Liability and Indemnity. Bradley shall defend, indemnify, and save harmless KFC from all claims demands and actions for injury, death, or damaged property, including attorney's fees, occurring or resulting from occurrences upon Parcel A, and KFC shall so defend, indemnify, and save harmless Bradley with respect to Parcel B. Bradley and KFC shall each maintain at all times during the term of this Agreement -4- i ~-~ comprehensive general liability insurance with respect to its own parcel in amounts adequate to cover its obligations under this Agreement but in no event less than $1 million combined single limit coverage. 6. Performance of Obligations of Other Party. If Bradley or KFC shall fail to perform any of its respective obligations under this Agreement after written notice and demand from the other and the lapse of a reasonable period of time after said notice for performance of said obligations, the demanding party, in addition to any other remedy permitted by law, shall have the right to perform the obligations of the other party in default, at the expense of the defaulting party. With respect to snow removal, each party shall assure that any time the amount of snow exceeds 1 1/2 inches that the common areas are plowed within a matter of two hours and failure to so plow shall allow the other party to perform the snow plowing and charge the same to the other party. 7. Parking. The parking spaces on Exhibit C hereto designated 30-min. parking shall be restricted to "30-minute only" parking. Such spaces shall be designated by appropriate signs. $. Easement. The reciprocal easements hereby granted, the restrictions hereby imposed, and the agreements herein contained shall be easements, restrictions, and covenants running with the land and shall inure to the benefit of and be binding upon the -5- l ~ parties hereto and their respective successors and assigns, including, but without limitation, all subsequent owners of Parcels A and B and all persons claiming under them. 9. Amendments. The reciprocal easements granted hereby shall be permanent easements and may be amended changed or altered only by written agreement of both of the parties hereto, their respective successors, or assigns. 10. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 11. Trustee Limitation. Any reference herein to the trustees of the Bradley Real Estate trust shall refer to such trustees in their representative capacity as such trustee and in no event shall it refer to such trustee personally. It is agreed that no trustee, shareholder, officer, or agent of Bradley shall be personally liable under any of the representations, covenants, or agreements set forth in this Reciprocal Easement Agreement. Any and all claims accruing to KFC hereunder shall in no event be enforced against the trustees, shareholders, officers, or agents personally but only against the trust assets. IN WITNESS WHEREOF, the parties have hereunto set their hands on the day and year first above written. THE TRUSTEES OF THE BRADLEY REAL ESTATE TRUST By: Its: President -6- ~! ~ / KFC NATIONAL MANAGEMENT COMPANY By: Its: STATE OF MASSACHUSETTS) )ss COUNTY SUSSEX } The foregoing instrument was acknowledged before me this day of , 1991, by E. Lawrence Miller, the President of The Trustees of the Bradley Real Estate Trust, a Massachusetts business trust, on behalf of the Trust. Notary Public STATE OF ) )ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of 1991, by the of KFC National Management Company, a Delaware corporation, on behalf of the Corporation. Notary Public -~- 11- I C~ Exhibit A Lot 2, Block 1, Richfield Hub Superblock, Hennepin County, Minnesota Lot 3, Block 1, Richfield Hub Superblock, as platted and of record in the office of the County Recorder, Hennepin County, Minnesota. Together with all that part of vacated Pleasant Avenue described as follows: All that part of the SE 1/4 of the NW 1/4 of Section 27, Township 28, Range 24, Hennepin County described as follows: Beginning at the most northerly northwest corner of Lot 3, Block 1, Richfield Hub Superblock as platted and of record in the office of the County Recorder; thence South 00 degrees-20'-18" West, assumed bearing, along the westerly line of said Lot 3, a distance of 142.11 feet; thence South 89 degrees-56'-52" West, a distance of 30.00 feet, to the most westerly line of said Lot 3; thence North 00 degrees- 20'-18" East along the northerly extension of said most westerly line, a distance of 142.11 feet', to the westerly extension of the most northerly line of said Lot 3; thence along said westerly extension 30.00 feet to the point of beginning. Together with all that part of said SE 1/4 of the NW 1/4 described as follows: Commencing at the intersection of the southerly extension of the westerly line of said Lot 3 and the southerly line of said SE 1/4 of the NW 1/4; thence North 0 degrees-20'-18" East along said southerly extension a distance of 183.00 feet to the most westerly southwest corner of said Lot 3 and the actual point of beginning of the land to be described; thence North 89 degrees-59'52" East along the southerly line of said Lot 3 a distance of 48.13 feet to a westerly line of said Lot 3; thence South 0 degrees-25'38" West a distance of 33.00 feet to the most southerly southwest corner of said Lot 3; thence North 89 degrees-59'-52" East along the southerly line of said Lot 3 a distance of 253.99 feet to the southeast corner of said Lot 3; thence South 0 degrees- 25'-38" West along the westerly line of Lot 2 said Block 1 and its southerly extension a distance of 107.00 feet to a line drawn parallel with and 43.00 feet northerly of said southerly line of said SE 1/4 of the NW 1/4; thence South 89 degrees-59'-52" West parallel with said southerly line of said SE 1/4 of the NW 1/4 a distance of 35.90 feet; thence North 0 degrees-20'-18" East a distance of 27.00 feet; thence North 89 degrees-59'-52" East parallel with said southerly line of said SE 1/4 of the NW 1/4 a distance of 15.00 feet to a line drawn parallel with and 282.00 feet i~--~- easterly of said southerly extension of the westerly line of said Lot 3; thence North 0 degrees-20'-18" East along said parallel line a distance of 71.56 feet to the north line of the south 141.56 feet of said SE 1/4 of the NE 1/4; thence South 89 degrees-59'-52" West along said north line of~the south 141.56 feet a distance of 282.00 feet to said southerly extension of the westerly line of said Lot 3; thence North 0 degrees-20'-18" East along said southerly extension a distance of 41.44 feet to the point of beginning. -2- ~l-lam Exhibit B DESCRIPTION OF KFC SITE That part of the SE 1/4 of the NW 1/4 of Section 27, Township 28, Range 24, Hennepin County, described as follows: Commencing at the intersection of the centerline of the Minneapolis., Northfield and Southern Railway and the southerly line of said SE 1/4 of the NW 1/4; thence North 89 degrees-59'-52" East, along .said southerly line a distance of 25.00 feet; thence North 0 degrees-20'-18" East, parallel with said centerline a distance of 43.00 feet to the point of beginning of the land 'to be described; thence continue North 0 degrees-20'-18" East, along said parallel line a distance of 98.56 feet; thence North 89 degrees-59'- 52 East, parallel with said southerly line, a distance of 282.00 feet; thence South 0 degrees-20'-18" West, parallel with said centerline, a distance of 71.56 feet; thence South 89 degrees-59'-52" West, parallel with said southerly line a distance of 15.00 feet; thence South O degrees-20'-18"West. parallel with said centerline, a distance of 27.00 feet; thence South 89 degrees-59'-52" West, parallel with said southerly line a distance of 267.00 feet to the point of beginning. - -::: o s~i ~~ m _ ..,~ ,, . .~ ~~ ,~ ' ~_~ _ ~ - ~ ~: ~_ _~ .~ ~ t 'V`y ~' ~ +~ V4. ''t. ~ . "~_ 't~ ~~ ~~~ ~e ~D n~v a (~ rn ~z //-~3 g ~. I NICOLLET AVF10.1E Exhibit "C" I ml® _~~ `~ ~ ~~ ~~ ~. ~ ~i-~~ r .f ~' "L I NICOLLET AVFJa~ Exhibi~ "D" 1~-1~ DECLARATION OF COVENANTS AND RESTRICTIONS AND GRANT OF EASEMENTS This Declaration is made this day of 1991, by the Trustees of the Bradley Real Estate Trust, a Massachusetts business trust (hereinafter referred to as "Bradley"). 1. Statement of Facts. a. Bradley is the owner in fee of .that certain real property in the City of Richfield, County of Hennepin, State of Minnesota, legally described on the attached Exhibit 1 (hereinafter referred to as the "Property"). b. Bradley has improved portions of the property and is about to construct thereon a new building to house a Rainbow Foods Store (hereinafter referred to as "Rainbow"). c. Bradley desires to subject each and every portion of the property to the easements, covenants, conditions, restrictions, reservations, liens, and charges hereinafter set forth pursuant to a general .plan of improvement of the property. NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS. 2. Common Plan. a. Bradley declares and certifies that it has established a plan for the protection, maintenance, and improvement of said property and does hereby fix the easements, covenants, and restrictions upon and subject to which all parcels of the property shall be used, held, leased, sold, or conveyed by the owner or by operation of law or otherwise, and each and all of which is and are for the benefit of said property and of each ii-~~ owner of land therein whether present or future and which shall inure and pass with said property and each and ever parcel of land therein and shall apply to and bind Bradley, its trustees, executors, administrators, and successors in interest. b. Bradley has leased a portion of the Property described as Parcel B on Exhibit 1 to Rainbow, and one of the purposes of this Declaration is to subject Parcels A, B, and C as described on Exhibit 1 to the restrictions and requirements in said lease with Rainbow. c. The covenants and restrictions. set forth in this Declaration and affecting Parcels A, B, and C are for the benefit of all Parcels; and whenever Parcel A is the servient tenement, both Parcel B and Parcel C shall be the dominant tenement; whenever Parcel B is the servient tenement, Parcel A and Parcel C shall be the dominant tenement; and whenever Parcel C is the servient tenement, Parcel A and Parcel B shall be the dominant tenement. Bradley reserves the right to record another declaration; however, nothing in such future declarations shall diminish the easements, covenants, and restrictions of this Declaration. 3. The Property. The property, which is legally described on Exhibit 1, is likewise shown upon the site plan attached hereto as Exhibit 2. The Property is divided into three parcels, which are legally described on Exhibit 1 as Parcel A, Parcel B, and Parcel C, and they are likewise generally identified on -2- it-t~ Exhibit 2. The entire Property is divided into two categories of use which are hereinafter referred to as "building area" and "common area." 4. Other Definitions. a. Persons. The "person" or "persons" means and includes individuals, partnership, firms, associations, trusts, and corporations, or any other form of business entity. b. Building Area. All areas permitted for construction or use for commercial purposes will be referred to as "building area." Building area includes all other areas on Exhibit B designated as such. c. Parcel. "Parcel" mean Parcel A, Parcel B, and/or Parcel C as the context requires. d. Common Area. The phrase "common areas" refers to the sidewalks, service drives, parking aisles, driveways, streets, parking areas, and landscaped areas; those areas within the shopping centers that are open to the public generally; and all other areas except those areas that are occupied from time to time by building structures and appurtenances permitted by this document. 5. Parking and Common Area Easements. a. Nonexclusive easements appurtenant to and for the benefit of Parcel A, Parcel B, and Parcel C are hereby created over and upon and across the common areas of Parcel A, Parcel B, and Parcel C. This easement is for the following purposes: -3- I 1-l ~ (1) The parking of passenger vehicles and pedestrian and vehicular traffic of the owners of the respective dominant parcels and their respective heirs, successors, grantees, mortgagees, tenants and subtenants, and all persons who now own, hold, or hereafter own or hold portions of real property within one of the dominant parcels or leasehold estate, or any interest therein, or building space thereon, and their respective tenants and subtenants thereof, and the officers, directors, concessionaires, agents, employees, customers, visitors, and other licensees and invitees of any of them. (2) The ingress and egress of any of the above designated persons and their passenger vehicles to any and from any portion of the common areas and public streets adjacent thereto. (3} The ingress and egress of delivery and service trucks and vehicles to and from the building areas or any portion thereof and the public streets adjacent to the entire shopping center for the delivery of goods, wares, merchandise and the rendition of services to said owners and the respective heirs, successors, grantees, and assigns, and all persons who now own or hereafter own or hold portions of any building area or any leasehold estate or any other interest therein or building space thereon and their respective tenants and subtenants; and the officers, directors, concessionaires, agents, employees, customers, visitors, and licensees of any of them. -4- l C -I ~' 6. No Barrier. No raised curbing, fence, division, rail, hedge, walls, or permanent obstructions of any type or kind shall ever be placed, kept, permitted, or maintained along the common boundary lines between the common areas of Parcels A, B, and C. 7. Restricted Uses. For so long as Rainbow is a tenant located on Parcel B of the Property, no portion of the Property shall be used for a bowling alley, theater, billiard parlor, nightclub, or any operation selling alcohol for on-site consumption, video arcade, or other place of recreation or amusement (other than the existing U.S. Swim and Fitness operation), or auto service station unless designated for such Exhibit A attached hereto. Further, no portion of the Property shall be leased so as to permit a tenant under such lease to sell or offer for sale groceries, health foods, meats, poultry, seafood, dairy products, fruits, vegetables, or baked goods, except that such restrictions shall not apply to any uses by tenants on the Property permitted under leases in effect on the date of this instrument (provided that no such lease shall be amended to allow any of the above-mentioned uses) nor shall it apply to the "incidental" sale of the foregoing items. For the purposes of this document, "incidental sale" means that less than eight percent (8%) of floor space of a tenant's demised premises is used to display and store such items. 8. Maintenance. The buildings located on Parcel A and Parcel B, although not having a party wall, are immediately adjacent to one another. The owners of the respective Parcels shall maintain their respective buildings and are hereby granted -5- I ~ .-~-° the right to enter upon the adjacent Parcel for the purpose of making repairs and maintaining the building. Such entrance shall be done without disturbing the business of the other party in any material respect. 9. Signs. The tenant (U.S. Swim. and Fitness) located on Parcel A will have a sign. located upon a pylon on Parcel B. For so long as the tenant of Parcel A pays its proportionate share of the cost of the maintenance of said sign, said sign shall not be moved or changed without the written permission of the tenant on Parcel A. 10. Maintenance of Common Areas. All common areas shall be maintained by the owner of the parcel in which said areas are located at such owner's sole cost an expense, in good order and repair and in an adequate, sightly, and serviceable condition. Said maintenance shall include, without limitation, keeping the same reasonably free and clear of foreign objects, papers, debris, obstructions, standing water, snow and ice; and to assure the foregoing, the owner of each respective parcel shall cause the common facilities to be cleaned not less than once weekly, and more often if necessary, and snow to be removed when the accumulation becomes more than one-half (1/2) inch. The owner of each respective parcel shall also cause the painted lines on all service drives, parking aisles, driveways, streets, and parking areas to be repainted as needed. Said parking areas shall not be changed or altered without the consent of all of the owners of Parcels A, B, and C, and the owners of each parcel shall ensure that the parking lots meet at a common grade at all times. -6- ~ !-a1 11. Enforcement. a. Entitlement to Enforcement. The right of enforcement of the terms, covenants, restrictions, and easements herein shall belong only to the owner of each benefited parcel and to their mortgagees, with the exception that use restrictions contained in paragraph 7 herein maybe enforced by Rainbow, its successors and assigns. b. Injunctive Relief. In the event that of any violation or threatened violation of any of the terms, restrictions, or covenants provided herein, any person entitled to enforce this Declaration will have in addition to the right to collect damages, the right to enjoin such violation or threatened violation in a court of competent jurisdiction. c. Force Majeure. If performance of any act or obligation of any party is prevented or delayed by an act of God, the elements, war, labor disputes, or other cause or causes beyond the reasonable control of such party, the time of the performance of the act or obligation will be extended for the period that such act or performance is delayed or prevented by any such cause. d. Attorneys' Fees. In the event that any suit is brought for the enforcement of any provision of this Declaration or is the result of any alleged breach thereof or for the declaration of rights and duties hereunder, the successful party or parties to such suit shall be entitled to collect reasonable attorneys' fees from the losing party or parties, and any judgment or decree rendered shall include an award thereof. -~- ,~-tea e. Breach Will Not Permit Termination. It is expressly agreed that no breach or violation of this Declaration will terminate this Declaration, but this limitation will not affect, in any manner, any other rights or remedies for any breach of this Declaration. f. Breach Will Not Defeat Mortgage. A breach or violation of any of the terms, covenants, and restrictions of this Declaration will not defeat or render invalid the lien of any first mortgage made in good faith and for value, but such terms, covenant, or restriction will be binding on and effective against anyone whose title to the property or any portion of such is acquired by foreclosure or otherwise, but only from and after the date of such acquisition. g. Remedies Cumulative. The specified remedies to which any person entitled to enforce this Declaration may resort under the terms of this Declaration are cumulative and are not intended to be exclusive of any other remedies or means of redress to which any person entitled to enforce this Declaration may be lawfully entitled in case of any breach or threatened breach of any provision of this Declaration. Failure to insist in any one or more cases upon the strict performance of any of the covenants of this Declaration or to exercise any remedy herein contained shall not be construed as a waiver or a relinquishment in the future of such covenant or remedy. 12. Duration. Each easement, covenant, and restriction contained herein will continue in full force and effect and in perpetuity with the exception that the restriction contained in -8- 1 i- a3 paragraph 7 hereof shall expire when Rainbow's lease terminates but in any event no later than thirty-five (35) years from the date of this Declaration. 13. Not a Public Dedication. Nothing contained in this Declaration will be deemed to be a gift or dedication of any portion of the shopping center to the general public or for the general public or for any public purpose whatsoever, it being the intention that this Declaration will be strictly limited to and for the purposes expressed herein. 14. Severability. If any clause, sentence, or other portion of the terms, covenants, and restrictions of this Declaration becomes illegal, null, or void for any reason or be held so by any court of competent jurisdiction, the remaining portions will remain in full force and effect. 15. Mechanics Lien. Whereever under the terms of this Declaration any owner or parcel is permitted to perform any work upon the parcel of another person, it is expressly understood and agreed that such owner will not permit any mechanic's, materialman's, or other similar liens to stand against the parcel on which such labor or material has been furnished in connection with any work so performed. Such owner may bond against and contest the validity and the amount of such lien, but such owner will immediately pay any judgment rendered with all proper costs and charges and will have the lien released at his expense. 16. Dominant and Servient Estates. Each and all of the easements and rights granted or created hereunder are appurtenances to the applicable portions of the Property, and -9- i ~-a~ none of the easements and rights may be transferred, assigned, or encumbered except as an appurtenance to such portions of the Property. For the purpose of the easements and rights, the property benefited will constitute the dominant estate and the particular area of the Property, which is burdened by such easement and right will constitute the servient estate. 17. Covenants Run With the Land. Each and all of the covenants, restrictions, and provisions contained in this Declaration (whether affirmative or negative in nature), are made for the direct, mutual, and reciprocal benefit of each parcel of land on the Property, will create mutual equitable servitudes upon each parcel of land on the Property in favor of the land benefitted, will bind every person having any fee, leasehold, or other interest in any portion of the Property at any time or from time to time to the extent that such parcel is affected or bound by the covenant, restriction, or provision in question or that the covenant, restriction, or provision is to be performed on such portion and will inure to the benefit of the parties and their respective successors and assigns as to the respective parcels of land on the Property. 18. Discharge of Riahts and Duties Upon Transfer. In the event of an assignment, transfer, or conveyance of the whole interest of any person in and to any parcel in which such person has an interest, without retaining any beneficial interest other than under the terms of a mortgage without simultaneously acquiring a new interest on such parcel by way of leasehold, life estate, or other possessory interest, then the powers, rights, -10- ~ ~-ate and interest conferred on such person will be deemed assigned, transferred or conveyed to such transferee, assignee, or grantee; the obligations will be deemed assumed by such transferee, assignee, or grantee with interest so acquired; and the duties, obligations, and rights of the person so transferring the interest shall be discharged. Notwithstanding the foregoing, any mortgagee who takes title to the property by foreclosure or deed in lieu of foreclosure shall be liable only for its acts from and after the date it acquires title. 19. Condemnation. In the event of condemnation by any duly constituted authority for a public or quasi public use of all or any part of the Property, that portion of the award attributable to the value of any land within the common area so taken shall be payable only to the owner in fee thereof, and no claim thereon shall be made by other owners of any other portions of the Property, provided, however, that this provision shall in no way affect any disposition of condemnation awards made in a lease between such owner and his tenants or in a mortgage between such owner and his mortgagee; provided further, however, all other owners of the shopping center may file collateral claims with the condemning authority over and above the value of the land of the area so taken. The owner of the fee of each portion of the area so condemned shall promptly repair and restore the remaining portion of the area so owned by such owner as near as practicable to the condition of the same immediately prior to such -11- ~ ~ --~-~ condemnation and without contribution from any other owner, except to the extent that the proceeds of such award are insufficient to pay the cost of such restoration and repair. 20. Compliance With Laws. The owner of each parcel shall comply promptly with all federal, state, and municipal statutes and ordinances and with all regulations, orders, and directives of appropriate governmental agencies as such statutes, ordinances, regulation, orders, and directives now exist or may hereafter provide concerning the use or safety of such owner's parcel and at such owner's full expense make or cause to be made any repairs, changes, or modifications in, on, or to his parcel required by any of the foregoing. 21. Insurance. Each owner shall maintain fire and extended coverage insurance on the buildings located on their property for their full insurable value, and each owner shall maintain public liability insurance in the amount of not less than One Million Dollars ($1,000,000) combined single limit coverage. All such policies required shall bear endorsements to the effect that the owner of another parcel so requesting shall be notified not less than ten (10) days in advance of any modification or cancellation thereof. Certificates evidencing the existence thereof shall be promptly delivered to each other owner of a parcel upon written request therefore. 22. Obligation to Rebuild. In the event that any building or buildings within an owner's parcel shall be damaged or destroyed partially or totally by fire, the elements, or any other casualty, the owner of said parcel shall at its expense, -12- Il-a~ promptly and with due diligence repair, rebuild, and restore the same as nearly as practicable to the condition existing just prior to such damage or destruction; or the owner may, at its option, elect to raze any building so damaged or destroyed and pave the area formerly occupied by said building so as to provide additional parking facilities, said area is to be paved, marked, lighted, drained, and maintained in the same manner as required by this Declaration for the common areas. 23. Headings. The caption headings of the various sections of this Declaration are for. convenience and identification only and shall not be deemed to limit or define the contents of their respective section. 24. Exhibits. Exhibits attached hereto and referred to herein are a part of this Declaration. 25. Gender and Number. The masculine gender includes the feminine and neuter, and the singular includes the plural. 26. Trustee Limitation. Any reference herein to the Trustees of the Bradley Real Estate Trust shall refer to such Trustees in their capacity as such Trustee and no Trustee shall have any personal liability whatsoever hereunder. THE TRUSTEES OF THE BRADLEY REAL ESTATE TRUST By: STATE OF MASSACHUSETTS) ss COUNTY OF ) On this day of 1991, before me, a notary public within and for said county, personally appeared -13- f ~-~~ and to me known to be the Trustees of the Bradley Real Estate Trust, who did state that they executed the foregoing Declaration as their free act and deed on behalf of the Trust. Notary Public -14- EXfiIBIT 1 $t-+.rc~1 F. !~-a°/ All that part of Lot 3, Block 1., 12icl~field Hub Superblock as platted and of record in the office of the County Recorder, Hettztepin County, Minnesota, lying northerly of the following described line: Comm.enclr~g at tba most westerly northwest corner of said Lot 3; thence South 0°-24'-1$" West along tha westerly line of said Lot 3 a distance of 1,4.89 feet to the point of beginning; thence South 89°•29'19" East a distance of li$.S1 foot; thence North 45°-32'-26" East a distance o! 2$.11 feet; thence South $9°-21'-44" East a distance of 15$.31 feet to the -east Iine of said Lot 3 and there tertnlrtating. Together with all that part of vacated Pleasant Avenue described as follows: All that part of the 5E 1/4 of t1~e NVV 1/4 of Section 27, Township 28, Range ?~F, Hennepin County described as follows: Beginning at tie xgost nQrtk~erly northwest corner of LQt 3, Black 1, R3clafieId Hub SuperbloCk~as platted and of rccozd in the office of tha County ~tacordar; thence South 00°-20'•l.8" West, assumed bearing, along tha v~vestariy lice of said Lot 3, a dlstanca of 142.y1 feet; thence South 89°-56'-52" West, a distance of 30.00 feet, to tha most wvesterly line of said Lot 3; thence North 00°-20'-18" East along the northerly extension o£ said most wvesterly line, a distance of 142.11 feat, to the westerly extension o£ tha most northerly line of said Prot 3; tttenca ai,oag said westerly extanslozt 34.04 feat to the paint of beginning. Parcel 8 Lot 3, Block 1, Richfield Hub Superblock, as platted and of record in the office of tha County Recorder, Hennepin County, Minnesota, except that part of said Lot 3 more ,particularly described as follows: All that part of Lot 3, 81ock 1, Richfield Nub Superblock, as platted and of record in the office of the County Recorder, Hennepin County, Minnesota, lying Northerly of the fallowing described line: Commencing at the most westerly Northwest corner of said Lot 3; thence South. 0° 20' 18" West. along the Westerly line of said Lot 3 a distance of 14.89 feet to the point of beginning; thence South 69° 29' 19" £ast a distance of 11$.51 feet; thence North 45° 32' 26" Bast a distance of 28.11 feet; thence South 89° 21' 44" East a distance of 158.31 feet to the East line of said Lot 3 and there terminating. Together with all that part of said Southeast Quarter of the Northwest Quarter ciescribad as follows: rxH~BZT ~ O (continued) I ~~ •'` Parcel . B (coat . ) Commencing at the intersection of the Southerly extension of the Westerly line of said Lot 3 and the Southerly line of said Southeast Quarter of the Northwest Quarter; thence North 0° 20' 18" East along said Southerly extension a distance of 183.00 feet to the most Westerly Southwest corner of said Lot 3 and the actual point of beginning of the land to be described; thence North 89° 59' 52" East along the Southerly line of said Lat 3 a distance of A8.13 feet to a Westerly line of said Lot 3; thence South 0° 25' 38" West a distance of 33.00 feet to the most Southerly Southwest corner of sold Lot 3; thence North 89° 59' 52" East along the Sautherly line of said Lot 3 a distance of 253.99 feet to the Southeast corner of said Lot 3; thence South 0° 25' 38" west along the Westerly line of Lot 2 said Block 1 and its Southerly extension a distance of 107.00 feet to a line drawn parallel with and 43.00 feet Northerly of said Southerly line of said Southeast Quarter of tho Northwest Quarter; thence South 89° 59' 52" West parallel with said Southerly line of said Southeast Quarter of the Northwest Quarter a distance of 35.90 feet; thence North_0° Za' i8" East a distance of 21.OQ feet; thence North 89° 59' 52" East parallel with said Southerly line of said Southeast Quarter of the Northwest Quarter a distance of 15.00 feet to a tine drawn parallel with and 782.00 feet Easterly of said Southerly extension of the Westerly line of said Lot 3; thence North 0° 20' 18" East along said parallel line a distance of 71.56 feat to the North ltne of the South 141.5G feet of said Southeast Quarter of the Northeast Quarter; thence South 89° 59' 52" West slang said North line of the South 141.55 feet a distance of 282.00 feet to said Southerly .extension of the Westerly line of said Lot 3; thence North 0° 70~' 18" East along said Sautherly extension a distance of 41.44 feet to the point of beginning. Parcel G The North 254.$5 feet of the most Easterly. 250 feet of (.ot 2, Block 1, Richfield Hub Superbl0ck, according to the plat thereof on file or of record in the office of the Registrar of Titles in and for said County. _ Lot 2, Block 1, Richfield Hub Superblock, according to the plat thereof o,n file or of record in the office of the .Registrar of Titles in and for said County, except the North 254.85 feet of the most Easterly 250 feet thereof. page 2 !I ~31 M114ryLLL1 AV~ ~ f~r~'rTrt ~ ~~ i ~" U ~ ~ f~- ~ I 3 -- t~J9 l5 w c37 F 1 • ~~ ~ - ~ ` ~ ~~ ~~ ~ ~ ;a .. ~ ~ ~~ y ~~ ~~ ~i ~~ •' d~ ~ ~ $$ ~. .9 P~9lak1 wwanos Fwu4uaN cp auryr -~rtrrrn -- _ r*rrrrrrrrn rrrtrrrmrrr*rrrrrrnTrrrrrrri+w..e*.e*rxri, ~mn+r ~ ~ ~ ~ ~ ~, rrrrrrm~rrrrrrrrrnr~ r++~, t~ CITY OF RICHFIELD, MINNESOTA i~ Council Letter No. 175 Agenda June 24, 1991 Issue Statement: Consideration of a motion approving a process providing for the sale of 7300 First Avenue. Background: A single family three bedroom home and detached garage are located at 7300 First Avenue. In the fall of 1982, the City's Sewer Fund purchased the property for 569,500. The then owner had been unable to sell because it was prone to flooding. Approximately $3,000 was expended to renovate some portions of the house and to make minor improvements which would hopefully limit future flood damage. The property was subsequently sold for $68,600 in 1984.. The asking price was $73,500. The flooding occurred because the elevation of the intersection adjacent to the property is approximately the same as Norby Pond to which the storm water from the intersection drains. The pipe may also be undersized. The intersection usually drains from one to 24 hours after a rainfall. Heavy rains in the spring of 1987 resulted in severe flooding at this home. Because of hydrostatic pressure, the basement floor imploded and water rose to a point twelve inches above the first floor. Notwithstanding the full disclosure statements placed in the documents related to the closing, the owners requested the City to repurchase the property following the 1987 flooding. The property was repurchased by the Sewer Fund in 1987 for 568,288. Staff has evaluated many options along with OSM, the City's engineering consulting firm, which would prevent future flooding. Options evaluated included increasing the holding capacity of Norby Pond, constructing a larger sewer, raising the intersection level, and constructing a relief line to Augsburg Pond. These options ranged in cost from $140,000 to $600,000. An increase in the Norby Pond outlet capacity was also evaluated but would have cost over one million dollars. The least costly option continued to be purchase. After the repurchase, additional options were evaluated; redevelopment, removing the house and using the vacant lot as a ponding area, deeding the vacant lot to adjoining property owners, keeping the house on site and making the basement area readily accessible to storm water overflow, and repairing the imploded floor and removing all utilities to the first floor. The most desirable long term option is to sell the house for continued use as a two-bedroom dwelling. Under this option, the basement floor would be repaired and all utilities would be removed to a third bedroom adjacent to the kitchen. The room would contain the furnace, water heater, washer and dryer connections and possibly a closet/pantry. To make these modifications as well as to generally "freshen up" the property and update the kitchen counter top and install a tub surround, would cost just under $20,000. ~a~1 In May, an appraiser from Chase-Brackett, appraised the property at $40,000. He took into consideration a deduct amount of $17,000 for repairs and 513,000 as an incentive based on its flooding history. Any disposition of this property would require full disclosure and a disclaimer on the part of the City, but there is no guarantee that a purchaser, after experiencing flooding, will not again request the City to repurchase the property. Recommended Motion: Adopt a motion directing staff to solicit bids by November 1, 1991 from potential buyers with a minimum price of $40,000 and contingent on making required repairs and flood damages minimizing renovations. Basis for Recommendation: 1. The property should be resold to convert this asset back to cash to reimburse the Sewer Fund. 2. It is the least expensive approach to providing a remedy to the flood problem. 3. The alternative of using Sewer Fund monies to upgrade the house and then sell it is less advisable because it would a) increase the sale price; b) limit the potential "sweat equity" for a purchaser; and c) would put the City at greater risk if the property fails to sell for an increased price. 4. Sale on an "as is" basis, this project would probably qualify for the new "Purchase Plus" program of the Minnesota Housing Finance Agency. Richfield is a pilot community for this program where qualified purchasers would be able to finance both the purchase of the property and its renovation with one mortgage at one interest rate. The program may also make it easier to assure completion of the renovation work, as the renovation monies are escrowed. 5. The City would fully disclose the history of flooding of this property and would disclaim future liability. Alternative Recommendation: 1. Adopt motion directing staff to make the necessary repairs and renovations and then offer the property for sale. 2. Reject the alternatives and continue to hold the property. 3. Identify other options for staff to evaluate. Discussion/Decision Mode: Action at this time should permit a sale to be completed before winter. Resp u ly submitted, James Prosser City Manager JDP:cak