ITEM 1 Utility/Drainage easement-D&Y Family Limited Partnershipof
V tS CITY
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MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORGINATING DEPARTMENT: REQUESTOR: MEETING DATE:
Legal Andy MacArthur, City Attorney March 6, 2017
PRESENTER(s): REVIEWED BY: ITEM #: 1
City Attorney Adam Flaherty,
Interim City Administrator
AGENDA ITEM DETAILS
RECOMMENDATION:
Staff recommends that the Council approve payment to D&Y Family Limited Partnership for utility and
drainage easements acquired during reconstruction of Trunk Highway 101 and approve transfer of
remnant parcels from City to D&Y Family Limited Partnership pursuant to Agreement dated September
13, 2004, and approve proposed Settlement Agreement.
ARE YOU SEEKING APPROVAL OF A CONTRACT?I IS A PUBLIC HEARING REQUIRED?
No. No.
BACKGROUND/JUSTIFICATION: In 2004 the City entered into an Agreement with D&Y Family Limited Partnership
wherein the City would seek approval of an additional interchange at CSAH 42 and Highway 101 and
additional considerations in exchange for D&Y donating certain properties to the City for eventual
transfer to the State in order to cover the local share costs of the Project that would otherwise have to
be paid by the City. The value of the local share was approximately 5 million dollars.
The Agreement required transfer of all of the affected parcels since at that time the final plans for the
upgrade Project had not yet been completed. The Agreement called for City return of identified remnant
parcels at the end of the Project. The City had various discussions with D&Y over a period of years as to
whether or not the River parcel would be used for a City park. It was later determined that the River
Parcel would be returned to D&Y. The other remnant parcel on CSAH 37 was always intended for return.
During the course of the Project, the City was forced to move utilities outside of MNDOT right of way
due to the changed designation of the highway. This was done during the project between 2006 and
2008. The City Council determined to settle ongoing disputes with D&Y and to make payment for the
easements at the amount of compensation paid for other properties around the same time frame.
The parcels will soon be returned to D&Y who will then execute easements in favor of the City. The
agreed upon compensation for the easement on PID 118 500 262100 is $63,290.00. The agreed upon
compensation for PID 118 500 352201 is $18,370.00. The City also agreed as part of the settlement to
reimburse D&Y for $9,263.30 in expenses incurred regarding the dispute over the terms and conditions
of the original Agreement.
Also attached for City Council action is a short Settlement Agreement for Council approval.
SUPPORTING DOCUMENTS: x ATTACHED ❑ NONE
Settlement Agreement.
MOTION: (Please word motion as you would like it to appear in the minutes)
Motion to approve payment to D&Y Family Limited Partnership in exchange for utility and drainage
easements on PID 118 500 262100 in the amount of $63,290.00 and PID 118 500 352201 in the amount
of $18,370.00, as well as $9,263.30 for reimbursement of costs, approving transfer of PID 118 500
262100 and PID 118 500 352201 from City of Otsego to D&Y Family Limited Partnership as per
Agreement dated September 13, 2004, and approving Settlement Agreement.
BUDGET INFORMATION
FUNDING: BUDGETED:
TBD No
SETTLEMENT AGREEMENT- CITY OF OTSEGO AND D&Y FAMILY LIMITED PARTNERSHIP
THIS AGREEMENT entered into this _ day of March, 2017 by and between the City of -Otsego (CITY)
and D&Y Family Limited Partnership (D&Y).
WHEREAS, the Parties previously entered into an Agreement regarding the donation of land and other
items dated September 13, 2004; and
WHEREAS, the Agreement called for the return to D&Y of certain "remnant parcels" remaining after
construction of State Highway 101 from 2006 to 2009; and
WHEREAS, the Parties have had certain disagreements regarding the interpretation of that Agreement;
and
WHEREAS, the City was required to place City utilities within the "remnant parcels", not anticipated in
the original Agreement; and
WHEREAS, the Parties wish to settle their various differences.
IT IS HEREBY AGREED BETWEEN THE PARTIES as follows:
1. CITY will return to D&Y that remnant parcel identified as PID 118 500 262100 byway of quit
claim deed.
2. CITY will return to D&Y that remnant parcel identified as PID 118 500 352201 byway of quit
claim deed.
3. CITY will verify extinguishment of any interest in the property previously identified as a
Temporary Construction easement over, under and across a portion of PID 118 500 262201,
4. D&Y will convey to CITY a drainage and utility easement over, under and across PID 118 500
262100 for which CITY will pay to D&Y $ 63,290.00.
5. D&Y will convey to CITY a drainage and utility easement over, under and across PID 118 500
352201 for which CITY will pay to D&Y $18,370.00.
6. CITY will reimburse D&Y for certain expenses related to securing return of the remnant parcels
in the amount of $9,263.30.
7. All other relevant terms and conditions of that Agreement between the parties dated
September 13, 2004 will remain in effect.
8. The above is a full and complete settlement of the issues related to remnant parcels, and D&Y
agrees that it hereby releases any and all claims or causes of action against CITY related to said
"remnant parcels".
Dated:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
Dated:
D&Y FAMILY LIMITED PARTNERSHIP
By:
Its
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