Title
RESOLUTION AUTHORIZING THE EXECUTION AND FILING OF AN AMENDED AND RESTATED DECLARATION OVER A PORTION OF SARGENT CREEK.
Body
CITY PROPOSAL:
WHEREAS, Resolution No. 18-0330 authorized certain stream restoration work by the South St. Louis Soil and Water Conservation District on a portion of Sargent Creek (the “Project”);
WHEREAS, the Project was financed under a grant agreement between the State of Minnesota, Department of Natural Resources and South St. Louis Soil and Water Conservation District (contract #108140/3000092577) (the “Grant Agreement”);
WHEREAS, a condition of the Grant Agreement required the filing of a restrictive covenant against the affected real property to prevent it from being sold, mortgaged, encumbered or otherwise disposed of without the approval of the Commissioner of Minnesota Management and Budget;
WHEREAS, Resolution No. 18-0331 authorized the proper city officials to execute the restrictive covenant required by the Grant Agreement and said document was recorded with the St. Louis County Recorder on May 17, 2018 as Document No. 1332965 (the “City Restrictive Covenant”);
WHEREAS, the City Restrictive Covenant encumbered a 5/8ths interest in the affected real property where the Project occurred because the City only held a 5/8th interest at the time the City Restrictive Covenant was executed;
WHEREAS, the City has now acquired the remaining 3/8th interest in the affected real property from the State of Minnesota (the “State Property”);
WHEREAS, the State Property was also encumbered with a similar restrictive covenant as the City Restrictive Covenant that prevented it from being sold, mortgaged, encumbered or otherwise disposed of without the approval of the Commissioner of Minnesota Management and Budget, which document was recorded with the St. Louis County Recorder on August 15, 2016 as Document No. 1291070 (the “State Restrictive Covenant”); and
WHEREAS, the Commissioner of Minnesota Management and Budget will consent to the transfer of the 3/8th interest of the State Property to the City on the condition that the City executes an Amended and Restated Declaration to amend and restate, in their entireties, the City Restrictive Covenant and the State Restrictive Covenant.
NOW THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to execute an Amended and Restated Declaration, substantially in the form attached as Exhibit 1, to encumber the real property legally described on Exhibit C to the attached Exhibit 1.
FURTHER RESOLVED, that the proper city officials are hereby directed to file the Amended and Restated Declaration with the St. Louis County Recorder to evidence it in the real estate records.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize the execution and filing of an Amended and Restated Declaration over a portion of Sargent Creek, as required under the terms of Contract No. 108140/3000092577 between the State of Minnesota, Department of Natural Resources (“DNR”) and the South St. Louis Soil and Water Conservation District (“SWCD”).
A grant agreement between the DNR and SCWD funded a stream restoration project for a portion of Sargent Creek (the “Project”). The Project created a stable stream channel, established trout habitat, repaired damage that occurred as a result from the 2012 flood, improved aesthetics of the creek, and increased resilience to future flooding.
At the time the Project was completed, the City owned a 5/8th interest in the affected property and the State of Minnesota owned the remaining 3/8th interest. Each party executed and recorded a Declaration of Restrictive Covenant against their respective interests to prevent them from being sold, mortgaged, encumbered or otherwise disposed of without the approval of the Commissioner of Minnesota Management and Budget. The City has now acquired the State’s 3/8th interest in the affected property through the Strategic Public Lands Realignment Project. The Commissioner of Minnesota Management and Budget will consent to the conveyance on the condition that the City executes the document attached as Exhibit 1 so that the real property improved by the Project continues to be restricted.