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HomeMy WebLinkAbout4F, Planning Case 11-016 - Approval of Arden Plaza, LLC Development Agreement�ITEN HILLS Request for Council Action Prepared By: Meagan Beekman, City Planner Council Meeting Date: October 10, 2011 Planning Case 11 -016 — Approval of Arden Plaza, LLC Development Agreement Budgeted Amount: NA Actual Amount: NA Funding Source: NA Recommendation: Motion to approve the development agreement between the City and Arden Plaza, LLC, as presented in the October 10, 2011, report to the City Council. Supporting Documents: 1. Memorandum from Meagan Beekman, dated October 10, 2011. 2. Development Agreement between Arden Plaza, LLC and the City. '...A.RZN HILLS MEMORANDUM DATE: October 10, 2011 TO: Honorable Mayor & City Councilmembers Patrick Klaers, City Administrator FROM: Meagan Beekman, City Planner SUBJECT: Planning Case #11 -016 Applicant: Arden Plaza, LLC Property Location: 3585 Lexington Avenue North Subject: Arden Plaza, LLC Development Agreement Requested Action Motion to approve the development agreement between the City and Arden Plaza, LLC, as presented in the October 10, 2011, report to the City Council. Background At the August 29, 2011, meeting, the City Council approved a Preliminary and Final Plat, and amendment to the Final PUD for the Arden Plaza redevelopment. The original Master PUD and Final PUD were approved in June of 2009. The amendment adjusted the site layout, and construction timeline from the original approval, and replaced CVS Pharmacy with Walgreen's as the user on the corner parcel. As part of any Master and Final PUD, the City requires that a development agreement between the developer and the City be signed and filed with the County against the deed of the property. At the August 29, 2011, meeting, Staff did not present a development agreement because there were details within the agreement that had not yet been worked out between the City and the applicants. The Council also added conditions that needed to be incorporated into the final development agreement. For this application, Staff and the City Attorney have decided to prepare two separate development agreements; one between Arden Plaza, LLC and the City, and one between CVS City of Arden Hills City Council Meeting for October 10, 2011 P; IAdmin1Council \Agendas & Packet Information12011110 -10 -11 Regular1Packet Information110 -10 -11 - Arden Plaza - Memo.doc Page 1 of 2 Pharmacy and the City. Each development agreement describes the obligations of that developer in regards to this application. The reason for this is because there are certain conditions of approval related to the platting of the property that are independent of CVS Pharmacy's obligations with the City. Legally it is cleaner and easier to keep the agreements separate. This was a similar process as was used with the Select Senior Living proposal across the street. As a rather large organization, CVS Pharmacy is still working through their review of the development agreement between their organization and the City, as a result Arden Plaza, LLC has requested that the City move forward with its approval of their development agreement. Approving the development agreement between Arden Plaza, LLC and the City allows Arden Plaza to move forward with platting the property, and potentially begining their own site work in preparation for the pharmacy. The City Attorney has reviewed this proposal and does not have any concerns about approving the two development agreements separately. The development agreement between the City and CVS Pharmacy will likely come before the Council November, but in any event will need to be approved and executed prior to the issuance of any building permits. Discussion At the August 29, 2011, meeting, the Council added three conditions, two of which pertained to the CVS parcel, and will be incorporated into that development agreement. One of the conditions was related to the improvements that will be made by Arden Plaza on the existing retail site. This condition has been incorporated into the development agreement between the City and Arden Plaza, LLC. Recommendation Staff recommends approval of the development agreements. Requested Action Motion to approve the development agreement between the City and Arden Plaza, LLC, as presented in the October 10, 2011, report to the City Council. Attachments A. Development Agreement between Arden Plaza, LLC and the City. City of Arden Hills City Council Meeting for October 10, 2011 P: IAdmin\Council\Agendas & Packet Information12011110 -10 -11 RegularlPacket Information110 -10 -11 - Arden Plaza - Memo.doc Page 2 of 2 CITY OF ARDEN HILLS ARDEN PLAZA, LLC FINAL PLANNED UNIT DEVELOPMENT - PHASE I AMENDMENT NO. 2 DEVELOPMENT AGREEMENT PHASE I PLANNING CASE NO. 11-016 1.0 Parties. This Development Agreement ( "Agreement ") is dated the 10th day of October, 2011, and is entered into by and between the City of Arden Hills, a Minnesota statutory city ( "City "); and Arden Plaza, LLC, a Minnesota limited liability corporation ( "Arden Plaza "). 2.0 Recitals. A. Arden Plaza is the record fee owner of the following described property ( "Property ") situated in the City of Arden Hills, County of Ramsey, State of Minnesota: The north 872 feet of the east one -half (1/2) of the northeast quarter of Section 34, Township 30 north, Range 23 west, except the west 625 feet thereof; excepting from the above described Tract, the west 200 feet of the north 283 feet. Subject to rights of public, those portions thereof taken for highways, said portions being the north 43 feet thereof and the east 33 feet thereof and that part thereof lying north and east of the connecting curb. B. The property is being platted as Lots 1, 2, 3, Block 1, Arden Plaza Addition. C. Arden Plaza intends to convey Lot 1 and the improvements located thereon to a pharmacy ( "Pharmacy "). The Pharmacy will improve Lot 1, and operate a pharmacy on the site. D. Arden Plaza will retain ownership of Lots 2 and 3 for future development pursuant to the terms of a Master Planned Unit Development (PC# 09 -011) and a future Final PUD and Development Agreement. E. On the 5th day of July, 2011, Arden Plaza and the Pharmacy submitted a combined application requesting that the City approve a Preliminary and Final Plat and a Final Planned Unit Development Amendment for the Property ( "Application "). F. The Application is illustrated and described on the following documents, attached and incorporated as part of Planning Case 11 -016, on file and recorded at the City of Arden Hills: 1. Cover Sheet, dated June 6, 2011 2. Preliminary Site Plan, dated June 6, 2011 3. Preliminary Grading and Drainage Plan, dated June 6, 2011 4. Preliminary Utility Plan, dated June 6, 2011 5. Landscape Plan, dated June 6, 2011 6. Outline Plan, dated April 15, 2011 7. Phase I Development Plan, dated June 29, 2011 8. Arden Plaza Preliminary Plat, dated June 30, 2011 9. Arden Plaza Phase I Narrative, dated July 25, 2011 10. CVS 05492 Arden Hills, MN. Colored Elevations, dated July 25, 2011 3.0 City Planning Commission Review. On the 3rd day of August, 2011, at a public hearing, the Arden Hills Planning Commission reviewed the Application; considered the comments and materials submitted by the City's staff and consultants; considered the comments and materials submitted by Arden Plaza, the Pharmacy, and their consultants; and considered the comments and /or materials submitted by other individuals who attended the public hearing. At the conclusion of the public hearing, the Planning Commission recommended approval of the Application subject to various conditions. 4.0 City Council Review. On the 29th day of August, 2011, the Arden Hills City Council reviewed the recommendations of the Planning Commission; the materials and comments submitted by City staff and the its consultants; and the materials and comments submitted by Arden Plaza, the Pharmacy, and their consultants. At the conclusion of its review, the City Council approved the Preliminary and Final Plat for Arden Plaza Addition; and the Final Planned Unit Development Amendment for the Property, all subject to the terms and conditions contained herein. 5.0 Terms and Conditions. In consideration of the undertakings herein expressed and in compliance with the City's Development Regulations, Arden Plaza agrees as follows: 2 A. Recording of Plat. Arden Plaza shall file the Final Plat of Arden Plaza Addition with Ramsey County within 180 days of the date of the City's approval of the Final Plat, or prior to the issuance of development permits for Lot 1, whichever event occurs first, or the City's approval shall expire unless extended by approval from the City Council. An extension request must be submitted in writing to the City at least forty -five (45) days prior to the expiration date. B. Previous Agreements. The applicant shall continue to abide by the conditions of all previous Development Agreements, Master PUD and Final PUD for Phase I approvals, permits, and reviews, except as hereinafter amended. C. Required Improvements. The project shall be completed in accordance with the submitted plans as amended by the conditions of approval. Any significant changes to these plans, as determined by the City Planner, shall require review and approval by the Planning Commission and City Council. D. Required Permits. The applicant shall obtain all necessary permits, including, but not limited to, NPDES, Rice Creek Watershed District, Ramsey County, and City Erosion Control Permits. Copies of all necessary permits shall be submitted to the City prior to the issuance of any development permits. E. Type of Improvements. If the Pharmacy proceeds with improvements on Lot 1, then within one (1) year of the City's approval of the application, or prior to the issuance of a certificate of occupancy for Lot 1, whichever comes first, Arden Plaza shall construct the following improvements: 1. Phase I Improvements. Improvements identified in the Phase I Development Plan, dated June 29, 2011. 2. Parking Lot. Patch and seal coat existing Arden Plaza parking lot. 3. Landscaping. Landscape the parking lot island where the fire hydrant is located; add landscaping to the tiered rock area along the retaining wall; spruce up, and maintain, existing planters in the front of the center. 4. Signage. Replace "Cleaners" and "Great China" signs; replace all four "Arden Plaza" wall signs. 5. Lighting. Remove five white pedestrian lights to the west of the drainage pond when the same lights along the entrances are replaced; check, and replace as needed, light fixtures under the arcade /awning G. Security. It is anticipated that all Improvements shall be made prior to the 3 issuance of a certificate of occupancy for Lot 1; however, any Improvements not yet completed at the time a certificate of occupancy is issued for Lot 1 shall require an amount of 125 percent of the estimated cost of the incomplete Improvements, in a form acceptable to the City Attorney. H. Reduction of Security. Upon completion of Arden Plaza's Improvements and acceptance by the City, the City Council shall reduce the amount of security for the completed Improvements, provided that, in no case, shall the total remaining security be less than the 125 percent of the estimated cost of the incomplete Improvements. I. Development of Lot 2. Prior to the issuance of building permits for Lot 2, Arden Plaza shall provide a long -term plan for the existing retail center and parking lot as part of approval for Phase II. Future Improvements /Assessments for the B -2 District Streetscape. The City anticipates constructing streetscape improvements on County Road E, adjacent to Lot 2. 1. Arden Plaza hereby agrees to waive its right to appeal any special assessments levied against Lot 2 or Lot 3 for streetscape improvements, associated with the implementation of the Guiding Plan for the B -2 District, provided that: a. Such special assessment does not exceed an amount equal to $350 per lineal foot on County Road E; b. The Property, subject to the terms of this Agreement, is specially assessed in the same manner as other similarly situated properties; c. To the extent that the City, as part of its Streetscape Improvement Project, does not remove any sidewalk improvements constructed by Arden Plaza as part of this Development Agreement, the City agrees to negotiate in good faith with Arden Plaza to determine a credit for sidewalk improvements when determining the assessment amount. d. In the event that the City, as part of its Streetscape Improvement Project, removes any sidewalk improvements constructed by Arden Plaza as part of this Development Agreement, Arden Plaza shall receive credit against its Proposed Special Assessment for Streetscape Improvements in the following manner: i. If the Streetscape Sidewalk Improvements are 4 constructed within one year of the execution date of this Agreement, Arden Plaza shall receive 100 percent credit for its sidewalk improvement costs; and ii. If such improvements are constructed after one year of the execution date of this Agreement, a depreciation rate of 5 percent per year shall be used, and the City shall credit the assessment in the amount of the depreciated cost. 2. Arden Plaza shall convey temporary construction easements over Lot 2 and Lot 3 to the City for implementing the County Road E streetscape improvements. The City shall reasonably restore the area of the temporary construction easement to its condition prior to construction of the streetscape improvements. 3. Arden Plaza shall convey a permanent public use easement as described in attached Easement Sketch, dated December 29, 2009. F. Binding Effect. The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the heirs, representatives, successors and assigns of the parties hereto and shall be binding upon all future owners of all or any part of the Property. This Agreement, at the option of the City, shall be placed of record so as to give notice thereto to any subsequent purchasers and encumbrances of all or any part of the Property and all recording fees, if any, shall be paid by the Arden Plaza. G. Default. The occurrence of any of the following shall be considered an "Event of Default" in the terms and conditions contained in this Agreement: 1. Failure of Arden Plaza to comply with any of the terms and conditions contained in this Agreement. 2. The failure of Arden Plaza to comply with any applicable ordinance or statute with respect to the development of the Property. H. Remedies. Upon the occurrence of any Event of Default, the City, in addition to any other remedy which may be available to it, shall be permitted to do any of the following: 1. City may make advances or take other steps to cure the default, and, where necessary, enter the Property for that purpose. Arden Plaza shall pay all sums so advanced or expenses incurred by the City, upon demand, with interest from the dates of such advances or expenses at the rate of 10 percent per annum. No action taken by the City pursuant to this section shall be deemed to relieve Arden Plaza from 5 curing any such default to the extent that it is not cured by the City or from any other default hereunder. The City shall not be obligated, by virtue of the existence or exercise of this right, to perform any such act or cure any such default. Arden Plaza shall save, indemnify, and hold harmless, including reasonable attorney fees, the City from any liability or other damages which may be incurred as a result of the exercise of the City's rights pursuant to this section. 2. Obtain an Order from a Court of competent jurisdiction requiring Arden Plaza to specifically perform its obligations pursuant to the terms and provisions of this Agreement. 3. Exercise any other remedies which may be available to it including an action for damages. 4. Withhold the issuance of any or all building permits and /or prohibit the occupancy of all building(s) for which permits have been issued. 5. In addition to the remedies and amounts payable as set forth herein, upon the occurrence of an Event of Default, Arden Plaza shall pay to the City all fees and expenses, including reasonable attorney, engineering and consulting fees, incurred by the City as a result of the Event of Default, whether or not a lawsuit or other action is formally taken. IN WITNESS WHEREOF, the above -named parties have hereunto set their hands. ATTEST: Patrick Klaers, City Administrator STATE OF MINNESOTA COUNTY OF ) CITY OF ARDEN HILLS, a Minnesota statutory city David Grant, Mayor On this day of , 2011, before me, a notary public within and for said county, personally appeared David Grant and Patrick Klaers, to me known to be respectively the Mayor and City Administrator of the City of Arden Hills, and they executed the foregoing Agreement and acknowledged that they executed the same by authority of and on behalf of City of Arden Hills. Notary Public 7 ARDEN PLAZA, LLC, A MINNESOTA LIMITED LIABILITY CORPORATION By: Printed Name: Title: STATE OF MINNESOTA ) ss. COUNTY OF ) On this day of , 2011, before me, a notary public within and for said county, personally appeared , the of Arden Plaza, LLC, and has executed the foregoing Agreement and acknowledged that they executed the same by authority of and on behalf of the company. Notary Public P: \Planning \Planning Cases \2011 \11 -016 - Arden Plaza - PUD Amendment (APPROVED) \Development Agreement - Arden Plaza - DRAFT.doc 8