ITEM 7.1 Pour ExpansionRequest for
OtSCITY 0
2vP'O City Council Action
MINNESOTA
DEPARTMENT T FOR ATIO
... n.....J..-._J.rw..__ ,
ORIGINATING DEPARTMENT: - E E T : - - - MEETING DATE: -
Planning City Planner Licht 28 October 2013
PRE ENTER(s): REVIEWED Br. ITEM
pity Planner Licht CityAdministrator Johnson 7.1 #--• Pour! Expansion
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends approval of an agreement regarding utility charges applicable to expansion of the
Pour! restaurant.
ARE YOU SEEKING APPROVAL. OF A CONTRACT? I IS A PUBLIC HEARING REQUIRED'
Yes. NO.
BAC KG R UND1JU TIFI ATION:
The Pourl restaurant Is proposing an expansion into the remaining 1,333.8 square foot tenant space of
the retail building located at 15704 90th Street. Sanitary severer and water utility availability charges
previously paid with the initial construction of the building and buildout of the Bright Eyes clinic, Pourl
restaurant and Pour! Bottle Shop have all been allocated to those spaces. The buildout of the remaining
space within the building requires that the utility availability and connection charges be paid with the
building permit in accordance with Chapter 6., Section 3 of the City Code. City staff has outlined the
following considerations in calculating the utility charges due with the current building permit:
Use. The architectural plans submitted for the proposed restaurant expansion include a
calculation of occupancy for 89 persons (identified as Tenant 1.A). The restaurant owner
indicates that the space is to be used as a gaiting area for the main restaurant, which does not
have such an area within the existing space, and not used for dinner service. No kitchen
expansion Is planned as part of the project. Utility chanes for the buildout of the remaining
vacant space are to be calculated by establishing Residential Equivalent Connections (RECS) per
Metropolitan Council Environmental Services criteria shorn below. The space would be
defined as non -fixed seating but fined seating and retail calculations are also shown,
O Fined Seating: 10 seats RE = 1.2 RECs
o Nora Fined Seating: Dining area @ 1 sf. per seat 10 seats per REC = 8.9 RECs
o Retail: 3,000 square feetRE = 0.4 RECs
Availability Charge. The calculation of the availability charge applicable to the restaurant
expansion is shown below:
2013
Fee Schedule
lore -Fixed Seating
Fixed Seating
8.9 RECs
1.2REs
Water $11550/REC
$13,795.00
$1,360.00
Serer $2,13#E
$1.9,001.60
$2,7562.00
TOTAL $3,685/REC
$32, # 96.50
$4,42
Connection Charge. The calculation of the connection charge applicable to the restaurant
2013expansion is shown below:
Total Utility Charges. The total of the availability and connection charges applicable to the
restaurant expansion is shown below:
Non -Fixed Seating
.9 RECs
Fee Schedule
Nen-Fined Seating
8.9 RECs
Fixed Seating
1,2RE s
Water
$1,,550/REC
$13,796.00
$1,860.00
Sewer
$$57,004.50
$7,686.00
TOTAL
$3,685/RFC
$70,799.50
$9,46
Total Utility Charges. The total of the availability and connection charges applicable to the
restaurant expansion is shown below:
Non -Fixed Seating
.9 RECs
Fixed Seating
1.2RFs
Availability Charge $32,796.60
$4,422.00
Connection Charge $70.r799.50
$9,546.00
TOTAL $103,595.00
$14,0034.00]
At a meeting on 16 August 2013, the property owner's representative and restaurant owner requested
consideration ofa reduction the utility charges duwith the building permit for threstaurant
expansion. The request for the reduction is based on the intended use of the space as a waiting area
and limited seating for 12 persons that would not include dinner service. When the calculation of the
utility charges was made for the initial restaurant, City staff used the number of seats as shorn on the
architectural plans, which after construction and operation of the restaurant is demonstrated to be a
reliable indicator of the space utilizartion. However, the expansion space appears ire plan vier t
underutilize the available area and seating could be expanded. For this reason, City staff recommends
that the utility charges for the restaurant expansion be paid based on the fixed seating calculations
above but that the property owner enters into ars agreement stating that the addition of any seating for
.more than 1.2 people would trigger payment of additional utility charges.
SUPPORTING DOCUMENTS: a A17A HED ❑ NONE
A. Draft agreement
POSSIBLE MOTION
Tease word mokn as you would [Ike It to appear in the minutes.
Motion to approve an agreement regarding utility charges for expansion of the Pourl restaurant at
15704 90th Street.
BUDGET INFORMATION
FUNDING: 113UD ETED: ❑ YES
NA
ACTION TAKEN
d NO
a APPROVED AS REQUESTED ❑ DENIED ❑ TABLED n OTHER (List changes)
COMMENTS:
CITY OF OTS GO
COUNTY of WRIGHT
STATE OF MINNESOTA
AGREEMENT BETWEEN THE CITY OF OTSEGO AND POUR? WINE
BAR REGARDING UTILITY FEES FOR. EXPANSION OF FACILITIES
AT 15704 "' STREET, OTSEGO
AGREEMENT entered into this day of October, 2013 between the City of
Otsego (CITY), a Minnesota municipal corporation and JLN, ITC, a Minnesota
Limited Liability Company, D/B/A, POUR! Nine Bay; (POUR).
WHEREAS, POUR, on behalf of property owner Protective Life Insurance Co.,
has applied for a building permit to expand existing facilities for restaurant use at
15704 90t" Street within CITY; and
WHEREAS, said expansion includes an additional 1,333.8 square feet of building
space to be used as a waiting area and lounge, and the project does not include
expansion of the existing kitchen area; and
WHEREAS, CITY currently has in place Utility Fees which include Water
Availability Charges, Water Connection Fees, Sewer Availability Charges and
Sewer Connection Fees which are charged to users ascd upon. Residential
Equivalent Connections (RECS) as determined by CITY as provided for by
Chapter 6, Section 3 of the Otsego City Code; and
WHEREAS, CITY has calculated total utility Fees at current rates for the building
expansion at 10.1 RECs, for a total amount of $103,595.00 including $32,796, 00
in Availability Charges and $70,799.50 In Connection Charges; and
WHERE' S, POUR has indicated that at this time they are only going to provide
12 additional restaurant seats within the restaurant expansion, which would result
In 1.2 RECs for a total utility cost of$14,0 4.00 including Availability Charges of
$4,422.00 and Connection Charges of $9,546.00; and
HERE' AS, POUR has requested that the utility Fees related to that portion of the
restaurant expansion with lion -Fixed Seating (area of the restaurant expansion
which will not serve persons) be deferred at this time and that they be required to
immediately pay only the utility Fees gelated to seating as indicated on the
submitted plans,
NOW, THEREFORE IT IS AGREED BETWEEN THE PARTIES as follows;
1. CITY agrees that at the time a building permit is issued for the restaurant
expansion it will only require the utility fees for the Fixed Seating 12
persons) or 1.2 RECS, in the total amount of $14,034.00 including
Availability Charges in the amount of $4,422.00 and Connection Fees in
the amount of $9,546.00.
2. The remainder of the utility fees for the Non -Fixed Seating or 8.9 RECS
(currently $103,595.50 including $32,796.50 in Availability Charges and
$70, '799.50 in Connection Charges) shall be paid at the time that any
additional seats are provided in a pro -gated basis based upon the number of
seats added as determined by CITY. The remainder of the CITY utility fees
shall be adjusted used upon the City fees in force and effect at the time the
seating is expanded.
3. POU. shall be responsible for immediately diately contacting the CITY to make
additional payment when seats are added, CITY reserves the right o
periodically inspect the premises regarding the number of seats being
provided in the build out area. Additional payments are immediately dine to
CITY, which may add interest at the rate of % per annum to any amount
not timely paid (within 30 days) as well as City administrative costs,,
Planning fees, Engineering fees or Legal fees.
4. In the event that POUR fails to make timely payment of any additional
utility fees owed, POUR agrees that, at the direction of the CITY, it will
immediately terminate any service or seating for which it has not paid the
allocated utility Fees, In the event that CITY must tale legal or other actio.
2
to enforce this Agreement, UR shall be liable to CITY for any costs
incurred by the CITY in enforcement ineiuding, but not limited to,
Administrative costs, Planning fees, Engineering fees and legal Fees and
costs.
5. POUR hereby waives any and all claims or causes of action against the
CITY, of whatever mature, related to this Agreement unless caused by the
willful, wanton or intentional misconduct of the CITY or anyone acting o
behalf of the CITY,
6. To the fullest extent permitted by law, POUR agrees to defend, indemnify
and hold harmless CITY, and its employees, officials, and agents from and
against all claims, actions, damages, losses and expenses, including
attorney fees, arising out of P UR's performance or failure to perforin its
obligations under this Agreement. POU. agrees this indemnity obligation
shall survive the completion or termination of this Agreement,
7. As additional remedies, and at the sole discretion of CITY, CITY may
assess any amounts not paid to the CITY against the real property or may
lien the property. In the event that CITY determines that an unpaid amount
shall be assessed against the areal property, POU. and the property owner,,
Protective Life Insurance Co., agree to any such assessment in the amount
determined by CITY and waive any hearings, any irregularities in
procedure, and any appeal of the assessment including the right to appeal
under Minnesota Statute 429.081.
. This Agreement may not be amended except by written Agreement of both
pat -ties.
9. In the event that any portion, sentence, paragraph or clause of this
Agreement is held to be invalid by a court of competent jurisdiction the
remainder of the Agreement shall be modified and interpreted to be as close
as possible to the original intent of the Parties.
Dated:
CITY of OTS GO
Jessica Stoekam , Mayor
ami Loff, City Clerk
Dated:
LN LLC
By:
Its
CONSENT
Protective Life Insurance Co. as owner of the real property identiffied in this
Agreement, 15 704 0t" Street, Otsego, Minnesota, hereby consents to and agrees
to be bound by the terms and conditions of this Agreement.
Dated:
PROTECTIVE LIFE INSURANCE COMPANY
,.
Its
11