ITEM 3.6 Pour- ExpansionRequest for
0tS2g0 City Council /fictionMfUNESOTA
DEPARTMENT INFORMATION
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Rjb'WATJN DEPARTgffhT:.......................................... RE{ E T l : MEETING DATE:
Planning City Planner Licht 12 November 2013
PRE ENTER(s): REVIEWED BY: ITEM
Consent Agenda CityAdministrator Johnson 3, —Pearl Expansion
AGENDA ITEM DETAILS
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ATION:
City staff recommends approval of a reprised agreement regarding utility charges applicable to expansion
of the Purl restaurant.
ARE YOU SEEKING APPROVAL OF A CONTRACT? I IS A PUBLIC HEARING REQUIRED?
Yes. I N.
The City Council at their meeting on 28 October 2013 approved an agreement regarding utility charges
related to expansion of the P url restaurant located at 15704 90'h Street The agreement calculated
applicable utility charges for the buildout of the restaurant space based on the 12 seats shown on the
submitted architectural plans and provides that additional utility charges be paid if the capacity of the
space is increased above 12 seams. The building owner and restaurant tenant have responded with a
request to increase the number of seats specified by the agreement for the expansion space from 12 t
. The reprised calculations of the utility charges is shown below:
RECs. The calculation of the RECs for the expansion space is shown below:
o Fined Seating: 20 seats @ 10 seats/RE = 2.0 RECs
o Non Fined Seating: Dining area @ 1.sfr per seat/10 seats per RE 8.9 REs .
Availability Charge. The calculation of the availability charge applicable to the restaurant
expansion is shown below:
2013
Fee Schedule
Non -Fined Seating
Fixed Seating
8.9 RECs
2.O E s
Water
$1,550/REC
$1.3,795.00
$3,100.00
Surer
$2,135/REC
$19,001.50
$4,270.00
TOTAL
$,5/E
$32,r796.50
$7,370.00
POSSIBLE MOTION
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Please word moUon as you would like it to appear In the minutes.
Motion to approve a revised agreement regarding utility charges for expansion of the Pour! restaurant
located at 15704 to Street.
BUDGET INFORMATION
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FUNDING: BUDGETED: i3YES
NA u NO
ACTION TAKEN
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u APPROVED AS REQUESTED o DENIED oTABLED a OTHER (List changes)
COMMENTS:
CITY of OSLO
COUNTY of WRIGHT
STATE OF MINNESOTA
AGREEMENT BE `W 1 THE CITY of OTSEGO AND POUR! WINE
BAR REGARDING UTILITY FEES FOR EXPANSION of FACILITIES
AT 15 704" ,SRIEI:ET OTS Go
AGREEMENT entered into this day of November, 2 between the City of
Otsego (CITY), a Minnesota municipal corporation and JLN, LLC, a Minnesota
Limited Liability Company, D/B/A, POUR! Wine Bar (POUR).
WHEREAS, FOUR, on behalf of property owner Protective Life Insurance Co.,
has applied for a building permit to expand existing facilities for restaurant use at
15 704 90"' 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 Chap# es and
Sewer Connection Fees which are charged to users based upon Residential
Equivalent Connections (RECS) as determined by CITY as provided for by
Chapter 6 Section 3 of the Otsego City Code,, and
WHEREAS, CI'T'Y has calculated total utility fees at current rates for the building
expansion at 10. f RECs, for a total amount of $103,595. 00 including $32,'796,00
in Availability Charges and $70,799.50 in Connection Charges; and
WHEREAS, POUR has indicated that at this time they are only going to provide
20 additional restaurant seats within the restaurant expansion, which would result
in 2.0 RECs for a total utility cost of $23,280.00 including Availability Charges of
$7,370,00 and Connection Charges of 15,9I0.00; and
WHEREAS, POUR has requested that the utility fees related to that portion of the
restaurant expansion with No -Fixcd 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 related to seating as indicated ori the
submitted plans.
NOW, THEREFORE IT IS AGREED ET E'T WEEN THE PARTIES as follows;
1. CITY agrees that at the time a building p rinit is issued for the restaurant
expansion it will only require the utility Fees for the Fixed Seating 20
persons) or 20 RECS, in the total amount of $23,280.00 including
Availability Charges in the amount of $7,3'70.00 and Connection Charges
in the amount t of $15,9 10. o
2. The remainder of the utility charges 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 -rated basis based upon the number of
seats added as determined by CITY. The remainder of the CITY utility
charges shall be adjusted based upon the City fees in force and effect at the
time the seating is expanded.
3. POUR shall be responsible for immediately contacting the CITY to make
additional payment when seats are added CITY reserves the might to
periodically inspect the premises regarding the number of seats being
provided in the build out area, Additional payments are immediately due to
CITY, which may add interest at the rate of 6% per annum to any amount
not timely paid (within 30 days) as well as City administrative costs,
Planning fees, Engineering fees or Legal fees.
. In the event that POUR fads to make timely payment of any additional
utility fees owed, POUR agrees than at the direction of the CITY, it will
immediately terminate any set -vice or seating for which it has not paid the
allocated utility fees. In the event that CITY must take legal or other action
to enforce this Agreement, POUR small be liable to CITY for any costs
incuffed by the CITY in enforcement including, but not limited to,
Administrative costs, Planning fees, Engineering fees and legal Fees and
costs.
. POUR hereby waives any and all claims or causes of action against the
CITY, of whatever nature, related to this Agreement unless caused by the
willful, wanton or intentional misconduct of the CITY or anyone acting on
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 POUR's POUR'performance or failure to perform its
obligations under this .Agreement. POUR 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 ars unpaid amount
shall be assessed against the real property, POUR and the property owner,
Protective Life Insurance Co., agree to any such assessment in the atuou t
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 429.0 8 1.
8. This Agreement may not be amended except by written Agreement of both
parties.
. 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.
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Dated
CITY of OTSEGO
Jessica Stoam, Mayor
'ami Loff, City Clerk
Dated
LN,ILC
By:
Its
CONSENT
Protective Life Insurance Co. as owner of the real property identified in this
Agreement, 15704 901h Street, Otsego, Minnesota, hereby consents to and agrees
o be bound by the terms and conditions of this Agreement.
Dated;
PROTECTIVE LIFE INSURANCE RANC COMPANY
By:
Its
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