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RESOLUTION AUTHORIZING A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT WITH HARTLEY HILLS LAND DEVELOPMENT, LLC AND ACCEPTING PERMANENT EASEMENTS FOR: (I) UTILITY PURPOSES AND (II) PUBLIC RECREATIONAL, WALKWAY AND TRAIL PURPOSES OVER REAL PROPERTY IN THE WOODLAND NEIGHBORHOOD, AT NO COST TO THE CITY.
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CITY PROPOSAL:
WHEREAS, the city council authorized a development agreement with Hartley Hills Land Development, LLC, a Minnesota limited liability company, under Resolution No. 20-0409, which development agreement was executed and registered in the Office of the St. Louis County Registrar of Titles on January 21, 2021, as Document No. 1035421 (the “Development Agreement”);
WHEREAS, the Development Agreement requires developer to convey the following described real property in St. Louis County, Minnesota (“Outlot A”):
Outlot A, FIRST REARRANGEMENT OF HARTLEY HILLS FOURTH ADDITION
to city for storm water management, but city has determined that it does not need Outlot A for storm water management;
WHEREAS, city has an existing drainage easement over a portion of Outlot A, but also desires a utility easement over that same portion of Outlot A;
WHEREAS, city and developer have agreed to modify certain requirements in the Development Agreement relating to the creation of certain easements for pedestrian trails within the plat of FIRST REARRANGEMENT OF HARTLEY HILLS FOURTH ADDITION; and
WHEREAS, the parties desire to amend the Development Agreement with this first amendment in order to address the issues described above.
NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to enter into a first amendment to Development Agreement, substantially in the form attached as Exhibit 1, with Hartley Hills Land Development, LLC, a Minnesota limited liability company.
FURTHER RESOLVED, that the proper city officials are hereby authorized to accept a perpetual easement for utility purposes, substantially in the form attached as Exhibit 2, from Hartley Hills Land Development, LLC, a Minnesota limited liability company, over, under and across the real property legally described on the attached Exhibit 2, at no cost to the city.
FURTHER RESOLVED, that the proper city officials are hereby authorized to accept a perpetual easement for public recreational, walkway, and trail purposes, substantially in the form attached as Exhibit 1, from Hartley Hills Land Development, LLC, a Minnesota limited liability company, over, under and across the real property legally described on Exhibit A attached to Exhibit 3, at no cost to the city.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution: (i) authorizes a first amendment to the development agreement with Hartley Hills Land Development, LLC, a Minnesota limited liability company (the “LLC”), affecting a housing development project in the Woodland neighborhood (the “Development Agreement”) and (ii) accepts two easements from the LLC, at no cost to the City.
Under the Development Agreement, the LLC is required to convey Outlot A within the plat of FIRST REARRANGEMENT OF HARTLEY HILLS FOURTH ADDITION to the City for stormwater purposes, but the city does not need the entirety of Outlot A because of the platted drainage easement and the two easements accepted by this resolution. This first amendment to the Development Agreement requires the LLC to convey the two easements accepted under this resolution in exchange for the release of the requirement to convey Outlot A to the city. The release of Outlot A will allow the LLC to sell it to an adjacent owner and ensures Outlot A provides taxable value to tax base of Duluth (Outlot A would be tax-exempt if owned by the city). The city has existing infrastructure within the two easement areas-the utility easement area contains a stormwater pipe and the trail easement area contains a trail that leads to Hartley Park.
The first amendment to the Development Agreement also requires LLC to deliver two additional easements for public recreational, walkway, and trail purposes to the City by June 30, 2026 (the “Additional Easements”). LLC has additional time to deliver the Additional Easements because the two affected lots are privately owned (not owned by the LLC). The Additional Easements will be presented to the city council for acceptance once they have been finalized.
Attached as Exhibit 4 is a map depicting the boundary of Outlot A and the two easements accepted under this resolution.