CR 01-057 Parking Lot 750
C\IY OF
m
HOPKINS
April 30, 2001
Council Report 2001-57
PARKING LOT 750
Pro Dosed Action
Staff recommends approval of the following motion: adopt Resolution 2001-28, approving
special assessment for Parking Lot 750.
Overview
Parking Lot 750 is located on Eighth Avenue, just south of the Hennepin County Regional
Railroad Authority right-of-way. This lot was constructed in conjunction with a lease
agreement that the City executed with U.S. Barne This agreement states that the bank will have
exclusive use of this lot during regular weekday business hours and Saturday mornings. In
return for this use, they agreed to pay for all costs incurred by the City in constructing this lot.
The total assessment amount is $350,863.94, which consists of the following:
Land purchase price
Legal
Expert & professional
Other
Construction
$ 132,300.00
4,029.50
36,910.28
91.16
177,533.00
This assessment does not have to go through a public hearing process, as U.S. Bank has agreed
by the lease to pay the subject costs. The assessment would be spread over a ten-year period at 8
percent interest.
SUDDortinl! Documents
Lease agreement dated 6/13/00, Section 22
Resolution 2001-28
onomic Dev. Director
Financial Impact: $350,863.94 N/A _ Budgeted: YIN ___ Source: PIR-Assessed
Related Documents (CIP, ERP, etc.):
Notes:
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2001-28
ADOPTION OF SPECIAL ASSESSMENT FOR PARKING LOT 750 CONSTRUCTION
WHEREAS, the City of Hopkins has incurred certain costs and expenses in acquiring and
improving City Parking Lot 750, totaling $350,863.94; and
WHEREAS, pursuant to the document entitled "Parking Lot Lease ('Lease')" entered into
by and between the City of Hopkins and u.s. Bank National Association ("U.S. Bank") dated
June 13,2000, U.S. Bank has agreed that such costs of construction of Parking Lot 750 may be
specially assessed against the real property described in Exhibit A attached hereto, pursuant to
Minnesota Statute Section 459.14 and Chapter 429, and has waived all rights to notice of or ob-
jection to such special assessments; and
WHEREAS, the City Council of the City of Hopkins has approved the construction of City
Parking Lot 750 and the costs and expense to be specially assessed as provided in the Lease.
NOW, THEREFORE, BE IT RESOLVED by the City of Hopkins, Minnesota that:
1. Such special assessments in the amount of$350,863.94 are hereby accepted and approved
and shall constitute special assessments against the land described in Exhibit A hereto in
accordance with the lease and with Minnesota Statute Section 459.14 and Chapter 429.
2. Such assessments shall be payable in equal semi-annual installments payable at the same
time as real estate taxes extending over a period of ten years, the first of the installments
to be payable on May .15, 2002, and shall bear interest at the rate of 8 percent per annum
from the date of the adoption of this assessment resolution. To the first installment shall
be added interest on the entire assessment from May 15, 2001, until December 31, 2001.
To each subsequent installment when due shall be added accrued interest for the preceding
year on all unpaid assessments.
3. The clerk shall forthwith transmit a certified duplicate of the assessment to the County
Auditor to be extended on the property tax lists of the County, and such assessments shall
be collected and paid over in the same manner as other municipal taxes.
Adopted this
day of
2001.
Eugene 1. Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
EXHmIT A
Lots 7, 8, 9 and the south 45 feet of Lot 6, Block 68, West Minneapolis Second Division, accord-
ing to the recorded plat thereof: Hennepin County, Minnesota.
Property Identification No. 24-117-22-31-0127.
*
refened to as the "Premises Acquisition and Parking Improvement Costs":
a) All costs incurred by Landlord, of whatever kind or nature, in acquiring the Real
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Property, including, but not lilnited to, the purchase price therefor as stated in the Purchase
Agreement, attorney's fees, engineer's, surveyor's and consultant's fees incurred in performing
investigation and testing under the Purchase Agreement, the cost of obtaining an AL T A survey as
provided in the Purchase Agreement, the premium for the owner's title insurance policy to be
obtained by Landlord, fees of the title insurance company issuing such owner's title insurance
policy, and all other reasonable costs and expenses incurred by Landlord in the acquisition of the
Real Property.
b) All of the costs actually incuned by Landlord, of whatever kind or nature, in
constructing the Parking Inlprovements and otherwise improving the Real Property for parking
purposes, including, but not limited to, all construction costs for parking, driveway, access and
landscaping improvelnents, and fees of surveyor's, engineer's and other third-party consultants.
Tenant agrees that all of the Premises Acquisition and Parking Improvement Costs shall be assessed
as a special asseSSlnent pursuant to Minn. Stat. Section 459.14 and Minn. Stat. Chapter 429 against
the following described real property ("Tenants Property") on which Tenant's banking facility and
offices are located, namely:
Lots 7, 8.' 9 and the south 45 feet of Lot 6, Block 68, West Minneapolis Second
Division, according to the recorded plat thereof, Helmepin County, Minnesota.
Property Identification No. 24-117-22-31-0127
Tenant acknowledges and agrees that Tenants Property has or shall receive a benefit from Landlord's
acquisition of the Real Property and construction of the Parking Improvements equal to or greater
than the aniount of the Premises Acquisition and Parking Improveluent Costs, and Tenant hereby
waives all rights to notice of such assessment, objection to the assessment or the amount to be
c:hopciv\parkleasc
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. assessed and any rights to appeal such special assessment, provided such special assessment is
payable in installnlents over a period of ten (10) years at an interest rate not to exceed 80/0. Tenant
represents and warrants that it is the successor in interest to First National Bank of Hopkins, is the
fee owner of Tenants Property and is entitled to consent and agree to imposition of such special
assessments against Tenants Property.
c) In the event HHC or its assigns exercises the Repurchase Option, all amounts
received by Landlord for the repurchase of the Option Parcel described in Exhibit B hereto shall be
credited as a prepayment of the special assessments described in the immediately preceding
subparagraph b).
IN WITNESS WHEREOF, the undersigned Landlord and Tenant have executed this Lease
Agreement effective as of the
13th day of
June
, 2000.
LANDLORD:
TENANT:
CITY OF HOPKINS
US BANK, NATIONAL ASSOCIATION
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