CR 88-115 Request Engineers Report - Parking Ramp
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. June 14, 1988
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council Report: 88-115
REQUEST FOR ENGINEERS REPORT
PARKING RAMP
rroposed Action.
Staff recoDl1'l\ends the following motion: Move t!U~t ResOlution 8S-51 L.
B,!solution Ordering Preparation. of Engineers Report on Parkina' Ramp
I~provement. be adopted.
This action would start the process of assessing part of the costs for
the parkinq ramp as per agreement with Lexington Development Co,
OVerview.
The City has an agreement with Lexington company for the cost sharing
of the parking ramp. That agreement states in part that a certain
amount should be assessed and what the terms are for the assesSEent.
The city Attorney has stated that the normal procedure should be
followed to levy the assessment. That proceedure would be to request
an engineers report, to call for and hold a public hearing on the
project, and order that the project be constructed as per agreement.
Primarv Issues to Consider.
o Is an engineers report and public hearing necessary?
The City attorney advises that this is the proper
proceedure to follow.
o Should this procedure commence at this time?
If the project is to 'be assessed in 1988 as per aqreement,
it is necessary to beqin the procedure as Boon as
possible.
supporting Information.
o Copy of agreement
o Memo from the city Attorney
o ReSOlution
:A(t~
G on P. Anderson
'rector of Engineering
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corr~ction of title. the payments hereunder required shall be postpone<!, but upon
correction of tltlet and within ten (l0) days after written notice, the City shaH
per-form as provirled in this Agreement. If said title is not marketable and is not
made so within tnree (3) months from the date of written objeetions tnereto as
above provided, the City's sole remedies hereunder shall be to either:
(8) terminate this Agreement by giving written notice by
registered mail to the Company, in which event this Agreement shall
become null and void and neither party shall be liable for damage! hereunder
to the other party and moneys paid by the City hereunder, if any, shall be
refunde<l; or
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(b) elect to accept title in its unmarketable condition by giving
written notice by registered mail to the Company, in which event the
warranty deed to be delivered at Closing shall except such objections..
Section 7. Construction of Parking R.amp. The City agrees that it will
construct the Parking Ramp on the Parking Property, provided that: its obligations
hereunder are subject to the express conditions that (i) the total development cost
of the Parking Ramp shall not exceed $2,139,500, and (ii) it has issued the Bonds
upon acceptable terms and in an amount sufficient to pay such costs. The City
shall advise the Company not later than June 8, 1988 whether the conditions ~t
forth in (1) and (ii) have been satisfied. In the event the conditions have not been
satisfied or waived by such date, the Company sball have the option to terminate
this Agreement.
Section 8. Company's Right to Parking Permits. The Company shall have"
the exclusive right to use 120 parking spaces within the Parking Ramp during the
Term of this Agreem~nt in consideration of its agreements and obligations
hereunder, including its conveyance of the Company Property without monetary
compensation. In addition. the Company may purchase additional parking permits
on the same basis as members of the general public. Upon expiration of this
Agreement, the Company shall have a first right to purchase 120 parking permits
at the permit cost in effect at such time.
Section 9. Company to Pay Portion of Development Cost. The Company
hereby acknowledges that the construction of the Parking Ramp and the
availability of 79 spaces therein shall be a benefit, to the Office Property and
agrees not to contest or chaHenge in any manner an assessment against the Office
Property in an amount equal to $391.998 as consideration therefor. such assessment
to be spread over IS years commencing in 1989, unpaid installments to bear
interest at the rate of 7.6% per annum. The amount of each annual installment
shall be $43,812.
Section 10. Operation and Maintenance; Payment of Expenses. The City
shall operate and maintain the Parking Ramp. The City shall annually during the
term of this Agreement levy an assessment against the Office Property to cover'
the City's expenses of operation and maintenance in an amount equal to $12,000 in
the first year of operation, increasing by 5% per year in each year thereafter,
compounded annually. In the event the Cityls actua.l expenses incurred &ttrib}Jtable
on a pro rata basis to the 120 stalls (or such lesser number of stalls as may be
available to the COil\{>any after damage or condemnation) used by the Company,
including allocable portions of salary of City employees and overhead and
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T Y
o F
N S
HOP K
MBMO
Date: June 8, 1988
To: Gordy Anderson
From: Jerre Miller
Ra: Assessment Procedure
I have researched M. S. 429.011 et seq. pursuant to your
inquiry of whether the shortened assessment procedure
outlined in M. S. 429.031, Subd. 3 can be followed with
regard to the proposed assessment for the parking ramp agreed
to by Norwest Properties, 1no_
Subdivision 3 says whenever all the owners of real property
petition for an improvement and agree to be assessed for the
entire cost, the Council may avoid a public hearing by
adopting a resolution to that effect and ordering in the
improvement.
M. S. 429 does not include parking lots or parking ramps as
authorized improvements.
Because 'the amount we are
City's time table will not
regular assessment procedur
followed in this .instance.
dealing with is sizable and the
be impaired by adhering to the
I recommend its provisions be
1010 First Street South, HopkLns, Minnesota 55343 612/935-8474
An Equal Opportunity Emr10yer
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CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 88-51
A RESOLV1'ION ORDERING PREPARATION OF
ENGINEER'S REPORT ON IMPROVEMENTS
WHEREAS a petition has been received requesting that
consideration be given to the improvement of the property
between loth a.nd 11th Avenues South, north of the Norwest
Bank Building by the construction of a parking ramp
thereon and the assessment of benefiting property tor all or
a portion of the cost of the improvement pursuant to M.S.A.,
.
Secs. 429.011 to 429.111, as amended.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF HOPKINS, MINNESOTA, that the proposed
improvement be referred to Gordon Anderson, Director of
Engineerinq, for study and he is instructed to report with
all convenient speed advising the Council in a preliminary
way as to whether the proposed improvements are feasiblo and
as to whether they should best be made as proposed or in
connection with some other improvement, and the estimated
cost of the improvements as recommended.
Adopted by the City Council of the City of Hopkins,
Minnesota this 21st day of June, 1988
JAMES A. GENELLIE
City Clerk
DONALD J. MILBERT,
Mayor
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JERRE A. MILLER,
City Attorney
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