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IV.7. Resolution Authorizing the City to enter into a Private Improvement and Improvement Maintenance Agreement with the owner of 6 – 6th Avenue N.; Krzos 1 City Council Report 2025-016 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Ryan Krzos, City Planner Date: February 4, 2025 Subject: Authorization of a Private Improvement and Improvement Maintenance Agreement for 6 – 6th Avenue N _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Approve Resolution 2025-005 Authorizing the City to enter into a Private Improvement and Improvement Maintenance Agreement with the owner of 6 – 6th Avenue N. OVERVIEW The owners of 6 – 6th Avenue N, have requested that the City establish a Private Improvement in City Parcel and Improvement Maintenance Agreement as it relates to adjoining City-owned property. The agreement allows access over and private improvements to remain within a portion of the adjacent City-owned property. Said City property was acquired from the Hennepin County Railroad Authority and was recently improved by the City with landscaping and a paved pedestrian path. The area covered by the agreement is a four-foot path along a building wall that lies roughly along the property boundary. The building has a door on this side, so the access area serves as a secondary means of access for building code compliance in emergency situations. The agreement would provide assurances to the owner that this portion of the City parcel will be able to be used for those access purposes. As proposed, this agreement is transferable to any future owners of 6 – 6th Avenue. Lastly, the agreement allows the relatively minor encroachment of the building by roughly one-foot onto the City parcel. SUPPORTING INFORMATION • Resolution 2025-005 Planning & Development CITY OF HOPKINS 1 CITY OF HOPKINS, MINNESOTA RESOLUTION NO. 2025-005 RESOLUTION AUTHORIZING THE APPROVAL OF THE PRIVATE IMPROVEMENT IN CITY PARCEL AND IMPROVEMENT MAINTENANCE AGREEMENT AND DIRECTING ALL NECESSARY ACTIONS FOR SAID TRANSACTION WHEREAS, Stephens Susies Properties, LLC, a Minnesota limited liability company (the “Owner”), owns a property located at 6 Sixth Avenue North, Hopkins, MN 55343-1604 (the “Property”) and legally described in Exhibit A; and WHEREAS, the City of Hopkins, a Minnesota municipal corporation (the “City”) owns a parcel of real property legally described in “Exhibit B”; and WHEREAS, the Owner’s building and landscaping (“Private Improvement”) partially encroach into the City Parcel and the City and Owner desire to establish a Private Improvement in City Parcel and Improvement Maintenance Agreement (the “Agreement”) to allow access over and the Private Improvement to remain within the area described and depicted in Exhibit C (the “License Area”); and WHEREAS, the City will allow access over and the Private Improvement within the License Area subject to the terms and conditions of this Agreement. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hopkins, Minnesota that the recitals and the exhibit set forth in and attached to this Resolution are incorporated into and made a part of this Resolution. NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Council of the City of Hopkins, Minnesota hereby authorizes the conveyance of the Property to the Owner and further authorizes the Mayor and City Manager to execute the Agreement with the Owner, hereinafter attached to this resolution as Exhibit D, on behalf of the City and undertake all other actions necessary to facilitate and complete the transaction contemplated herein. NOW, THEREFORE, BE IT FINALLY RESOLVED, by the City Council of the City of Hopkins, Minnesota that the Mayor, City staff, City attorney and City consultants are hereby authorized and directed to take any and all additional steps and actions necessary or convenient in order to accomplish the intent of this Resolution. Approved this 4th day of February, 2025, by the City Council of the City of Hopkins, Minnesota. CITY OF HOPKINS, MINNESOTA Patrick Hanlon, Mayor Attest: Michael Mornson, City Manager A-1 EXHIBIT A ADDRESS: 6 SIXTH AVENUE NORTH, HOPKINS, MN 55343 PID: 2411722420029 DESCRIPTION: Lot 9, Block 65, West Minneapolis 2nd Division, according to the recorded plat thereof. B-1 EXHIBIT B DESCRIPTION OF CITY PARCEL ADDRESS: N/A PID: 2411722420217 DESCRIPTION: Outlot J, HCRRA Downtown Hopkins, according to the recorded plat thereof, Hennepin County, Minnesota C-1 EXHIBIT C DESCRIPTION AND DEPICTION OF LICENSE AREA AND PRIVATE IMPROVEMENT D-1 EXHIBIT D FORM OF PRIVATE IMPROVEMENT IN CITY PARCEL AND IMPROVEMENT MAINTENANCE AGREEMENT PRIVATE IMPROVEMENT IN CITY PARCEL AND IMPROVEMENT MAINTENANCE AGREEMENT THIS AGREEMENT (the “Agreement”), is made as of this ____ day of November, 2024, by and between Stephens Susies Properties, LLC, a Minnesota limited liability company, located at 6 Sixth Avenue North, Hopkins, MN 55343-1604 (the “Owner”), and the City of Hopkins, a Minnesota municipal corporation (“City”), collectively referred to herein as (“the Parties”). WHEREAS, Owner owns the parcel of real property legally described in Exhibit A, attached hereto (the “Property”); and WHEREAS, the City owns the parcel of real property legally described in Exhibit B, attached hereto (the “City Parcel”) WHEREAS, the Owner’s building and landscaping (“Private Improvement”) partially encroach into the City Parcel and the City and Owner desire to establish a license agreement to allow access over and the Private Improvement to remain within the area described and depicted in Exhibit C (the “License Area”); and WHEREAS, the City will allow access over and the Private Improvement within the License Area subject to the terms and conditions of this Agreement. NOW, THEREFORE, in consideration of the promises and the mutual agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows: 1.Encroachment. The City warrants that it owns and has the right to grant this limited use interest within the City Parcel for the Private Improvement within License Area. The City grants the Owner a limited license for the sole purposes of access over and maintaining the Private Improvement within the License Area. This Agreement only creates a license to use and maintain the Private Improvement and provide emergency egress from the Property over the City Parcel and does not create any interest in real property. 2.Scope. The City reserves the right to use the City Parcel, including the License Area during the term of this Agreement for its own purposes. Nothing herein shall prevent the City from taking any action necessary to exercise its interest in the City Parcel, including excavation which will render the Private Improvement unusable. In the event the Private Improvement becomes unusable for the use contemplated herein, the Owner shall have no claim against the City arising out of this Agreement. 3.Insurance. During the term of this Agreement, Owner shall procure and keep in force a general property casualty insurance policy which includes the area designated as the D-2 License Area. The policy must include minimum coverage amounts of $1,500,000 for any number of claims arising out of a single occurrence. Any claims for damages based upon Owner’s use of the License Area must be submitted to Owner’s insurance policy. The City must be named as an additional insured on such policy. 4.Maintenance and Repair. The Owner shall repair and maintain the Private Improvement and License Area in accordance with the City Code and so as not to create a public nuisance, zoning violation, or otherwise negatively impact the ability of the City or another authorized user to operate within the City Parcel. In the event that Owner fails to repair or maintain the Private Improvements or any other portion of the Private Improvement or License Area during the term of this Agreement, such limited use granted may be revoked by the City. Upon termination of this Agreement, Owner may be required to remove the Private Improvement from the City Parcel. 5.Term. This Agreement shall be effective upon execution and shall terminate upon the Owner failing to cure a default under this Agreement, the Owner no longer utilizing the Private Improvement, or as provided in Section 7 of this Agreement. 6.Default. If the Owner fails to take any action required in connection with this Agreement, the City will provide a written notice of default to the Owner giving Owner a thirty (30) day cure period. If the default is unable to be cured within thirty (30) days, Owner shall notify City of the reason and assurances that the default will be cured within a timely manner. Should Owner fail to cure the default or provide assurances, City may terminate this Agreement consistent with the terms provided in Paragraph 7 of this Agreement. 7.Termination. The City may terminate this Agreement at any time consistent with the terms of Paragraph No. 5 of this Agreement, by providing 120 days’ written notice to the Owner following failure to cure a default. Upon termination of this Agreement and notice from the City, Owner may be required to remove the Private Improvement from the City Parcel at Owner’s sole cost. 8.Hold Harmless; Indemnification. Any and all claims that arise or may arise against the Owner, its officers, employees, agents or contractors while engaged in its use of the License Area shall in no way be the obligation of the City. Furthermore, Owner shall indemnify, hold harmless and defend the City, its officials, employees, contractors and agents from and against any and all liability, loss, costs, damages, expenses, claims, actions or judgments, including reasonable attorneys’ fees which the City, its officers, employees, agents or contractors may hereinafter sustain, incur, or be required to pay, arising out of by reason of any act or failure to act by Owner, its officers, employees, agents or contractors or arising out of or by reason of this Agreement. Nothing in this Agreement shall be construed as a waiver by the City of any immunity, defenses, or other limitations on liability to which the City is entitled by law. D-3 9.Compliance with Laws. The parties agree to comply with all laws, ordinances andregulations of Minnesota applicable to this Agreement, the existence of the Private Improvements, and the use of the License Area. 10.Recording. The Owner shall record this Agreement and any amendments thereto in the office of the Hennepin County Recorder or Registrar of Titles. 11.Entire Agreement; Modification. This Agreement constitutes the entire agreement between the parties and supersedes any other written or oral agreements between the parties. Any modification of this Agreement or additional obligation assumed by any party in connection with this Agreement shall be binding only if evidenced in writing signed by the parties to be affected by said modification or additional obligation. 12.Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and together which shall constitute one and the same instrument. 13.Governing laws. The laws of the state of Minnesota shall apply to this Agreement. 14.Severability. If any term, provision, or condition contained in this Agreement shall, to any extent, be invalid or unenforceable, the remainder of this Agreement (or the application of such term, provision, or condition to persons or circumstances other than those in respect to which it is invalid or unenforceable) shall not be affected thereby, and each term, provision, or condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 15.Assignment. The Owner may transfer and assign this Agreement to successors in interest of the Property without the City's prior written consent. 16.Non-Waiver. No failure or delay by either party in exercising any right, power, or remedy under this Agreement, whether arising before or after the execution of this Agreement, shall operate as a waiver thereof. Nothing in this Agreement shall be construed as a waiver of any rights or remedies that may have accrued to either party prior to the execution of this Agreement. Any waiver of any provision of this Agreement must be in writing and executed by the party granting such waiver. 17.Binding Agreement. The parties mutually recognize and agree that all terms and conditions of this recordable agreement shall run with the land herein described and shall be binding upon the successors and assigns of the parties hereto. D-4 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed as of the day and year first above written. CITY OF HOPKINS By: Patrick Hanlon, Mayor By: Michael Mornson, City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of November, 2024, by Patrick Hanlon and Michael Mornson, the Mayor and the City Manager, respectively, of the City of Hopkins, a Minnesota municipal corporation, by and on behalf of the municipal corporation. Notary Public 4 OWNER By: By: STATE OF ) ) ss. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this ___ day of January, 2025, by __________________ and __________________, the owners of the property. Notary Public This instrument drafted by: Kennedy & Graven, Chartered (SJR) Fifth Street Towers 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 D-A-1 EXHIBIT A DESCRIPTION OF PROPERTY ADDRESS: 6 SIXTH AVENUE NORTH, HOPKINS, MN 55343 PID: 2411722420029 DESCRIPTION: Lot 9, Block 65, West Minneapolis 2nd Division, according to the recorded plat thereof. D-B-1 EXHIBIT B DESCRIPTION OF CITY PARCEL ADDRESS: N/A PID: 2411722420217 DESCRIPTION: Outlot J, HCRRA Downtown Hopkins, according to the recorded plat thereof, Hennepin County, Minnesota D-C-1 EXHIBIT C DESCRIPTION AND DEPICTION OF LICENSE AREA AND PRIVATE IMPROVEMENT