ITEM 3.6 KCS Park DedicationP
OtSeT
goF
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Planning
City Planner Licht
22 September 2014
PRESENTER(s):
REVIEWED BY:
ITEM #:
City Planner Licht
City Administrator Johnson
3.6 — KCS Park Dedication
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends approval of an agreement between the City and KCS Building Company related to
satisfaction of park dedication requirements for the Kaleidoscope Charter School Addition.
ARE YOU SEEKING APPROVAL OF A CONTRACT? I IS A PUBLIC HEARING REQUIRED?
Yes. I No.
BACKGROUND/JUSTIFICATION:
Kaleidoscope Charter School has received City approval for a 29,598 square foot expansion of its existing
43,015 square foot building that will allow for the education program to serve Kindergarten through 12th
grade students. To accommodate the building expansion, Outlot A, Dara Glen to the west of the
School's existing property has been acquired and is to be platted together with the existing lot upon
which the school developed. The subject site is located at 7525 Kalland Avenue, north of 70th Street and
west of CSAH 19. The City Council approved a PUD -CUP, preliminary and final plat and vacation of
existing easements at their meeting on 11 August 2014. The final platting of Outlot A, Dara Glen
Addition requires dedication for parks and trails in accordance with Section 20-7-18 of the Subdivision
Ordinance.
Section 20-7-18 of the Subdivision Ordinance, the City may require dedication of 10 percent of the five
acre parcel being final platted (0.5 acre), payment of a cash fee in lieu of land at $3,500 per acre
($17,500) or a combination thereof. City staff and Kaleidoscope officials have discussed satisfaction of
park dedication requirements by provision of a permanent easement allowing the City access to the
playfield and parking facilities on the expanded campus property and an agreement regarding long-term
maintenance.
City Attorney has drafted an agreement that requires Kaleidoscope to provide the park easement for the
playfield and parking areas, which are permanent. The agreement also outlines a 20 year term forjoint
use and management of the fields whereby Kaleidoscope provides for the initial capital investment in
developing the playfield and parking lot, including installation and operation of the irrigation system.
The City would assume responsibility for mowing, fertilizing, weed control and field preparation during
the summer to ensure that the playfields are maintained to standards consistent with other City
facilities and recognizing the City's greater capabilities for this work. The agreement provides that the
City may retain any field use fees it collects from recreation program participants using this location to
defray maintenance costs or for other City expenses. The draft agreement was reviewed by the City
Council at their special meeting on 8 September 2014. The draft agreement has been modified since
that meeting to address the following items raised by KCS and shown as underlined in the attached
exhibit:
■ The area of the off-street parking area is subject to modification by the parties if needed to
accommodate temporary classrooms or other site changes in the future. In that there still has
to be adequate parking for the school, there will always be adequate parking for park users also.
■ A provision was added that any maintenance issues identified outside of the City's period of use
that may affect the City's use of the facilities would be handled on a case-by-case basis in terms
of work and cost responsibilities.
■ The City would be responsible for any damages to the facilities as a result of its users (and would
be able to seek recourse against them) as an extension of the insurance provisions included in
the initial draft of the agreement.
■ The maintenance provisions of the agreement are for a term of 20 years. Prior to the end of the
term, the City and KCS would meet to negotiate extension of a maintenance agreement, which
may include the City assuming responsibility for the water use. KCS was concerned about the
cost of the water usage and their maintenance responsibility exceeding the amount of the cash
fee for park dedication beyond the term of the initial agreement. As outlined below, the
playfield may be part of a much larger facility in the future, which would make facility
maintenance easier and the City has the ability to recover maintenance and water expenses
through user fees as determined by the City Council.
The Future Park and Trail Plan adopted as part of the 2012 Comprehensive Plan identifies the need for
additional play fields in the City and includes a search area in west Otsego for such community facilities.
The opportunity to partner with Kaleidoscope Charter School will provide the City with additional
playfields without the capital costs for acquisition and development of the playfields and 84 stall parking
lot. The City will incur additional maintenance costs as part of the agreement to maintain the fields to
the level needed for City recreation program use, but these costs would be incurred if the City added
facilities the needed to meet the demand for playfields with community. The playfields available at this
location can also be expanded in the future with additional property acquired from adjacent parcels
either through park dedication or purchase.
SUPPORTING DOCUMENTS: ❑ ATTACHED ❑ NONE
A. Draft Agreement
B. Resolution 2014-62
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Motion to adopt Resolution 2014-62 approving an Agreement between the City and KCS Building
Company regarding shared use of playfield and parking lot use.
BUDGET INFORMATION
FUNDING: I BUDGETED: ❑ YES
❑ NO
UJA
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
Draft- September 17, 2014
PERMANENT PARK EASEMENT AND PERMANENT
INGRESS/EGRESS AND OFF-STREET PARKING EASEMENT
KCS Building Company, a Minnesota Company, Grantor hereby conveys to the
City of Otsego, a Minnesota Municipal corporation, Grantee, a permanent
easement for park, recreation and playfield purposes over, under and across the
following described property located in Wright County, Minnesota:
The north 270.00 feet of the west 172.00 feet of Lot 1, Block 1, KALEIDOSCOPE
ADDITION according to the Plat on file and of record at the Office of the County
Recorder, Wright County, Minnesota.
A permanent easement for ingress and egress and off- street parking purposes
over, under and across the following described property located in Wright County,
Minnesota:
The south 125.00 feet of the north 245.00 feet of the east 235.00 feet of the west
407.00 feet; the south 80.00 feet of the north 120.00 feet, of the east 25.00 feet of
the west 197.00 feet; and the north 40.00 feet lying east of the west 172.00 feet as
measured perpendicular from the north and west lines of Lot 1, Block 1,
KALEIDOSCOPE ADDITION according to the Plat on file and of record with the
Office of the County Recorder, Wright County, Minnesota.
1
GRANTOR
KCS BUILDING COMPANY
By:
Its:
COUNTY OF WRIGHT )
) ss.
STATE OF MINNESOTA)
Subscribed and sworn before me this day
of , 2014 by , the
of KCS Building Company
With authority and on behalf of the Company,
Grantor.
NOTARY PUBLIC
DRAFTED BY:
MACARTHUR LAW OFFICE, LLC
3601 Thurston Avenue N.
Suite 103
Anoka, MN 55303
763-231-5850
2
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2014-62
RESOLUTION APPROVING AGREEMENT BETWEEN THE CITY OF
OTSEGO AND KCS BUILDING COMPANY REGARDING SHARED
FIELD AND PARKING LOT USE
WHEREAS, KCS Building Company has recently received City approval for an
expansion of Kaleidoscope Charter School; and
WHEREAS, the expansion requires the payment of $17,500.00 in Park and Trail
fees in lieu of land dedication; and
WHEREAS, KCS Building Company has proposed that this obligation be
fulfilled by a Joint Agreement between KCS and the City allowing for City shared
use of playfields and off street parking facilities; and
WHEREAS, the Agreement sets forth the terms and conditions of City use of the
fields, maintenance, easement, irrigation and other items as agreed between the
parties.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of
Otsego, Wright County, Minnesota as follows;
1. The attached Agreement between the City of Otsego and KCS Building
Company Regarding Shared Field and Parking Lot Use is hereby approved.
2. The Mayor and City Clerk are hereby authorized to execute the Agreement
on behalf of the City of Otsego.
ADOPTED this 22nd day of September, 2014 by the City Council of Otsego.
MOTION TO ADOPT the Resolution by Council Member
and seconded by Council Member
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
2
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
AGREEMENT BETWEEN THE CITY OF OTSEGO AND KCS BUILDING COMPANY REGARDING SHARED
FIELD AND PARKING LOT USE
THIS AGREEMENT made this _ day of September, 2014 by and between the City of Otsego (CITY), a
Minnesota municipal corporation and KCS Building Company (KCS), a Minnesota company.
WHEREAS, KCS has recently applied for and received approval from CITY for an expansion of the
Kaleidoscope Charter School located on Lot 1, Block 1 and Outlot A, DARA GLEN within the City of
Otsego; and
WHEREAS, CITY and KCS have entered into a Development Agreement relative to the expansion; and
WHEREAS, pursuant to the approval and the Developers Agreement KCS is obligated to pay $17,500.00
in Park and Trail Dedication fees in lieu of land to CITY; and
WHEREAS, CITY has indicated that it would waive those fees upon an agreement acceptable to CITY for
shared use of a recreational field and parking lot located upon the property as set forth on attached
Exhibit A.
NOW, THEREFORE CITY and KCS enter into this Agreement regarding shared use of the facilities
described in Exhibit A.
CITY will have use of the playfields and off-street parking lot from April 1 to October 31 of each
year, subject to reasonable scheduled use of the facilities by KCS. CITY and KCS will meet yearly
to schedule use and both parties will accommodate the others reasonable shorter term requests
for use.
KCS will convey to CITY a permanent easement in favor of the CITY, its officers, agents,
contractors, renters and invitees over the playfields and off street parking in form acceptable to
CITY The off street parking easement is subject to modification by agreement of the parties to
accommodate the educational program needs of KCS.
3. KCS will install irrigation in the playfields acceptable to CITY. KCS will pay for all water used for
irrigation purposes. Irrigation of the playfields shall be at a minimum of one inch per week and
shall be to the satisfaction of CITY, with the end result being a playfield suitable for recreation
use by CITY.
4. During the period of use, April 1 through October 31, and through the term of this Agreement
(twenty (20) years) CITY will maintain the playfields including irrigation system operation (but
not water expenses), mowing, fertilizer application, weed control, striping and provision of
recreational equipment, such as nets, as necessary for CITY's use. At all other times KCS will
maintain the fields at the same level of maintenance otherwise provided by CITY. CITY will start
up the irrigation system and will blow out the irrigation system at the end of the year, regardless
as to whether or not these tasks fall within the CITY period of use. In the event that work
outside of the scope of this Agreement and outside of the time period of CITY maintenance
arises which may be required to insure that the playfields are in acceptable condition for CITY
use the parties will meet and evaluate on a case by case basis the proposed work and will
determine by agreement which party should undertake the required work and responsibility for
the costs of such work. CITY will have use of the playfields and off street parking pursuant to
the permanent easement after the term of this Agreement (twenty (20) years), but will have no
maintenance responsibilities for the playfields after the end of the twenty (20) year period of
this Agreement.
5. During the period of CITY use and in order to help defray CITY maintenance costs and expenses,
CITY may collect a field use fee from participants in its recreation programs. CITY may also rent
the facilities to specific outside sports groups for their use for a fee. In the event that the
playfield is rented to any outside group, said group will be required to sign an acceptable waiver
of liability, indemnification and hold harmless agreement naming both CITY and KCS. Any
outside group renting the facilities shall provide proof of satisfactory insurance to cover any
potential claims or causes of action. CITY will be responsible for any damage to the playfields
caused by its renters or contractors. Any and all fees or rent collected by CITY in relation to use
of the facilities shall be property of CITY and may be utilized for any purpose determined, at its
sole discretion, by CITY.
6. KCS will not take any action or will not fail to act in any manner detrimental to CITY use of the
playfields and off street parking.
7. CITY and KCS will both maintain liability insurance in the amount of at least $1,000,000.00
covering the facilities. CITY insurance will be effective during times of CITY use and KCS
insurance shall be effective during times of KCS use. CITY shall hold KCS harmless from any and
all claims or causes of action resulting from CITY use of the facilities. KCS shall CITY harmless
from any and all claims or causes of action resulting from KCS use of the facilities. This
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paragraph is not intended, nor should it be interpreted as allowing for stacking of insurance
policies. This paragraph shall remain in force and affect after the term of this Agreement.
8. CITY will, to the extent permitted by law, defend and indemnify KCS from any claims or causes of
action resulting from CITY use of the facilities, except for claims resulting from intentional or
grossly negligent acts or failures to act by KCS, its officers, agents or employees. This paragraph
shall remain in force and affect after the term of this Agreement.
KCS will, to the extent permitted by law, defend and indemnify CITY from any claims or causes of
action resulting from KCS use of the facilities, except for claims or causes of action resulting
from intentional or grossly negligent acts or failures to act by CITY, its officers, agents or
employees. This paragraph shall remain in force and affect after the term of this Agreement.
10. This Agreement shall be construed in accordance with the laws of the State of Minnesota. If any
provision of this Agreement, or portion thereof, shall be held to be invalid, inoperative or
unenforceable, the remainder of the Agreement, shall not be affected, and the remaining
provisions of this Agreement shall remain valid and enforceable.
11. In light of this Agreement and faithful performance of the same by KCS, CITY will waive the
required payment of the $17,500.00 park and trail dedication in lieu of land for the Kaleidoscope
Addition Final Plat. In the event that KCS breaches the terms and conditions of this Agreement,
and upon notice and reasonable opportunity to cure any breach, CITY may reinstate the
required $17,500.00 park and trail dedication fee in lieu of land. KCS agrees that if it breaches
the Agreement, the $17,500.00 park and trail fee shall become an obligation of KCS or its assigns
or successors in title, and on behalf of KCS and its assigns and/or successors in title waives any
and all objections to payment of the same, any objection to the amount becoming a lien against
the property, and any objection to assessment of that amount, plus City costs and fees, against
the property including any required hearings, any irregularities in proceedings and any right of
appeal including, but not limited to the right of appeal under Minn. Stat. 429.081.
12. This Agreement shall be for a term of twenty (20) years. Paragraphs 7, 8 and 9 above shall
survive termination of the Agreement and shall remain in force and affect. Prior to the
termination of this Agreement CITY and KCS will meet regarding potential renegotiation of the
Agreement and possible use of CITY fees to pay for field related water usage after the term of
the Agreement.
13. The terms and conditions of this Agreement shall bind the parties and their respective assigns
and successors in title.
14. This Agreement shall be amended or supplemented only by written amendment executed by
both parties.
Dated:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
Dated:
KCS BULDING COMPANY
91
Its:
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