Title
RESOLUTION AUTHORIZING A DEVELOPMENT AGREEMENT WITH NORTHLAND COUNTRY CLUB TO CONSTRUCT A PUBLIC WATER MAIN AND OBTAIN A UTILITY EASEMENT FOR WATER LINE PURPOSES.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into a development agreement, substantially the same as the form attached as Exhibit 1, with Northland County Club, a Minnesota non-profit corporation, to: (i) construct a public water main, hydrants and related apparatus and (ii) obtain a utility easement for water line purposes; costs for the easement shall be payable from Fund No. 510-500-1905-5533.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a development agreement, with Northland County Club, a Minnesota non-profit corporation (“NCC”), to: (i) construct a public water main, hydrants and related apparatus and (ii) obtain a utility easement for water line purposes.
The City desires to improve and optimize its water distribution system in the Lakeside neighborhood. As options were explored to accomplish this goal, the City worked with NCC on an alignment for a new water main that would go through NCC’s property. The location of this alignment is preferred over other routes due to cost and distance. If this new water main is installed, then use of the upper Lakeside water tank and booster station will be phased out of service and eventually eliminated. NCC is agreeable to the construction and operation of the water main through its property under the terms and conditions of this development agreement and subsequent easement.
The general alignment for the new water main is shown on Exhibit A of the development agreement, subject to final design and survey, both of which are undergoing and are expected to be completed this month. The award of the project is scheduled to be presented to the city council for approval in December, with construction commencing in January.
City staff obtained an appraisal earlier this year based on an older alignment for the proposed water main and the appraisal will be updated once the final location is determined. The final design and survey will be used to calculate the cost of the permanent and temporary (construction) easements. The cost per square foot will not change, but the total square footage of the easement area will be updated upon final design and survey. The appraiser will then use that information to calculate the final cost of the easement areas. The City will pay NCC for the permanent easement area (20 feet in width), as well as a temporary construction easement (generally 20 feet on each side of the permanent easement area, plus additional areas for staging and laydown). The City will also use other portions of NCC’s property for access to the easement and construction areas, but will pay a flat fee to NCC of $10,000 for such use (those areas will not be calculated in the appraisal).
The development agreement outlines the City’s responsibilities for the use, construction and restoration of NCC’s property during the project. The easement agreement provides the City with the perpetual right to operate, maintain, repair and replace the infrastructure. Given the complexity of the project and disruption to NCC’s property during construction, a development agreement is needed to outline the City’s obligations to NCC and set forth the details and timelines for those obligations.