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IV.7. Approve Right of Way Encroachment Agreement – 5 6th Avenue South; Stadler (CR2015-148)November 23, 2015 N o P��� S Councol Report 2015-14� Approve Right of ay Encroach�ent Ag�eernent - 5 6g'' /�verrue Sou#h Proposed Action Staff recommends adoption of the following motion: Move that Council approves a right of way encroachment agreement between the City and the property owners at 5 6th Avenue South. Overview The building at 5 6th Avenue South (Midnight Market building) currently encroaches onto the public right of way a little over 2 feet (about 101 sq ft). The property is owned by Eugene and Eileen Ma�cwell. It is unknown why the building was built to encroach onto the ROW. The parties have agreed to the enclosed encroachment agreement to memorialize the terms and conditions. The current property owners requested an encroachment agreernent to clear the property title. The proposed encroachment agreement terms are similar to an encroachment agreement approved in May, 2015 for an encroaching private retaining wall at 8660 Excelsior Blvd. The City Attorney and legal counsel representing the property owners have jointly drafted the attached agreement. City staff recommends approval of the encroachment agreement. Primarv Issues to Consider Terms of the agreement • Termination clause: The City may terminate upon 60-day written notice in the event the encroachment is removed. City may terminate immediately in event of threat to public health, safety or welfare. • Any disturbance of the encroachment will be replaced at the sole cost of the property owners. • Property owners required to maintain the encroachment in good repair and must seek City review & approval prior to any modifications or improvements. • Property owner must include the encroachment area as insured premises under their liability insurance policy Supportinq Information • Proposed Encroachment Agreement • Photogr ph of 5 6th Ave S building encroachment ,- � - - _� Steven J. Stadler, Public Works Director Financial Impact: n/a Budgeted: Source: Related Documents (CIP, ERP, etc.): Notes: ENCROACHMENT AGREEMENT T�IIS ENCROACHMEleT�' AGREEMENZ' ("Agreement") is made on , 2015 ("Effective Date"), by and among the City of Hopkins, a Minnesota municipal corporation ("City"); and Eugene Maxwell and Eileen Maxwell, married to each other (the "Property Owners"). RECITALS a. City is the owner of 6ti' Avenue South, a public road in the City of Hopkins, Hennepin County, Minnesota (the "Road"). b. Property Owner is the owner of the real property in Hennepin County, Minnesota legally described on attached Exhibit A(the "Property"). c. The Property abuts the Road. d. Part of the 1-story block and brick building on the Property encroaches over the east property line onto the Road ("Encroachment"). The Encroachment is depicted and legally described on attached Exhibit B. e. The Parties have agreed on terms and conditions for the Property Owners to maintain the Encroachment and desire to enter into this Agreement to memorialize the agreed terms and conditions. AGREEMENT NOW, THEREFORE, it is hereby and herein mutually agreed, in consideration of promises and considerations of the Parties as set forth, as follows: 1. The above Recitals and attached Exhibits are a material part of this Agreement and are incorporated herein. 2. The City hereby grants to the Property Owners a non-exclusive license within the Road in the current location of the Encroachment as depicted and legally described on attached Exhibit B("License"), subject to the terms and conditions of this Agreement. 3. The License shall commence upon the Effective Date and shall terminate pursuant to Paragraph 6 below ("Term"). . _ _ _ _ 4. The Property Owners shall, during the Term, maintain, at Property Owners sole cost and expense, the current Encroachment improvements in good repair and in compliance with all applicable local, state and federal rules and regulations. In the event the Property 1 Owwrgers desire to improve the Encroachrnent, Property Owners shall submit a plan, subject io the review and approval of the City, and any worlc shall stricily comply vvith the approved plans and shall be at the sole cost and expense of the Property Owners. 5. In the event the City desires to make improvements within the Road the City will take reasonable measures to limit disturbance of the Encroachment. Any areas of the Encroachment that are disturbed will be replaced at the sole cost and expense of the Property Owners. 6. The City may terminate this Agreement and the License upon 60-day written notice to the Property Owners in the event the Encroachment is removed from the License area and such removal continues for 6 consecutive months (the "Termination Event"). For purposes of this Paragraph, the Termination Event does not include any improvement to the Encroachment pursuant to Paragraph 4 above. The City may terminate this Agreement and the License immediately upon providing written notice in the event the City determines that such termination is necessary to protect the health, safety and welfare of the public from, as reasonably determined by the City, an immediate threat. Immediately upon termination, the Property Owners shall remove the Encroachment from the Road and shall restore, to the satisfaction of the City, the License area to a condition consistent with the Road at the sole cost and expense of the Property Owners. In the event the Property Owners fail to remove the Encroachments from the Road and restore the License Area upon termination, the City may, but is not obligated to, complete such work. In such an event, the Property Owners shall pay to the City, within 30 days notice, the City costs for said work. 7. The Property Owners shall include the Encroachment as insured premises under their property liability insurance policy. Within 10 business days of the Effective Date Property Owners shall provide the City with evidence of said insurance. Said insurance shall be maintained at all times during the Term. 8. Property Owners hereby agree that it will indemnify, defend and hold harmless the City of Hopkins, its elected official, officers, employees, agents and consultants ("Indemnified Parties") against all liabilities, judgements, claims, costs and expenses including reasonable attorneys' fees, which may occur or arise against the Indemnified Parties, arising from Property Owners' use of the License area. 9. All notices required under this Agreement shall be written and delivered either by hand delivery or first class U.S. mail, postage paid, to the following address: a. If to the City: City of Hopkins 1010 lst Street South Hopkins, MN 55343 Attn: City Manager 2 b. If to Property Owners: Eugene �nd Eileen 1l�axwell 5 6th Ave. S. Hopkins 1VIN 55343 10. This Agreement runs with the land and is binding on the Property Owners, their heirs, successors and assigns. This Agreement is appurtenant to The Property and may only be assigned accordingly. 11. This Agreement and License creates no easement or other interest in that part of the License area beyond that created herein. IN WITNESS WHEl�OF, the parties herein haVe executed this Agreement on the Effective Date CITY OF HOPKINS By Mayor And By City Clerk STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN ) This instrument was acknowledged before me on by and , Mayor and Clerk, respectively, of the City of Hopkins, a Minnesota municipal corporation, on behalf of said corporation. Notary Public 4 STATE OF MINNESOTA ) SS COUNTY OF • . Eugene Maxwell Eileen Maxwell This instrument was acknowledged before me on , 2015 by Eugene Maxwell and Eileen Maxwell. Drafted by: Hoff, Barry & Kozar, P.A. Suite 160 775 Prairie Center Drive Eden Prairie MN 55344 5 Notary Public EXIiI�IT A I,EGAI, I)ESCItIPT'IOl\T OI� TIiE PI20PEI�'I'�' nd 32. 6tack 1, -�Yest �dinneapnlis. Alsa: Lat 3f}, except ihe S+wth 14 i�et tl�ier�ot, H#Uck i. yd,es{ s. together wft�r khe v4cnt�d �QSt—iN�st ai1�,y+ adjan+ng lo� 30 cmtl 31 in 81dck 1s 'dlest Minneapolis. and een the Sautherly ext�nsiuns of khe €osk ar�d 4N�st li»es of said Cot 3�. Rl�o tc�g�the� wit�s th�t t�rt of 1/2 Af the vacated North—Sauth : t�!!ey in 81ack t. 1Nsst t�innea{�ofis, lying between� the Easterly exter+5lons rth iine i�f the Squtn 14 feet of lok 3q in �a�d 8lo�k i anci the Nnrthwcs�erly extor�ivrr c�f th�' iock fo tarmer 7h�; Minnenpolis &;St, lou�s Roi#wcay Cornp Io�t�Eed and established; thence Nartl�w�sterip alan soid Spur 3ruGk and the sxtonsian:chereof [o a 1i thraugh a`poini ort the Eost Itne af �th A�renue, from the center tinc dF the main tra�k o� ;�tird R piang a iine paraliei wiih the Souih I�ne af said E a paint o+n `the �as# 1(ne ce( SGid fi�h AY4;n1�8, dist� the cenk�r I;ae of ssrid main trvct; th�nce Scsuth� trqck, to #h� Wesi line of said 5th Avenue, Lh��c� the ppint of beginninq. t pnr# at th� tnUawi�tg described ptssperty lyirtg Vliest of the dinneapolis� ancl its Ptorihefly �xtensissn: Thqt" port o# ths� ownsh7p 117, Ns�rth Rara�e 22 Wcat oF �ifth Pr�nci�sql Msrit3ia�r, �t fln the west Itne a# aYh Avenue,, exterided his�rity, -tli�tant 9 stn tha cen#ar line Vf Spur 7racli l:G.C. 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'••� (�`' � �t'ii That part of the existing road right-of-way of 6th Avenue South adjoining the westerly line of Block 1, West IVlinneapolis, according to the recorded plat thereof, Hennepin County, Minnesota, described as follows: Commencing at the southwest corner of Lot 30, said Block 1; thence on an assumed bearing of North 03 degrees 06 minutes 41 seconds East along the west line of said Block 1, a distance of 28.99 feet to the southerly wall of an existing building and the point of beginning of the parcel of land to be described; thence North 86 degrees 10 minutes 45 seconds West along said southerly wall, a distance of 2.46 feet to a southwest corner of said existing building; thence North 03 degrees 39 minutes 54 seconds East along the westerly wall of said existing building, a distance of 45.06 feet to the northwest corner of said existing building; thence South 86 degrees 18 minutes 16 seconds East along the northerly wall of said existing building, a distance of 2.02 feet to the west line of said Block 1; thence South 03 degrees 06 minutes 41 seconds West along said west line, a distance of 45.07 feet to the point of beginning.