Title
RESOLUTION AUTHORIZING A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT, TERMINATION OF STORM WATER MAINTENANCE AGREEMENT, AND ACCEPTING A PERMANENT EASEMENT FOR UTILITY, STORMWATER AND DRAINAGE PURPOSES, ALL WITH OR FROM LOTUS REALTY SERVICES, INC., AFFECTING CERTAIN REAL PROPERTY IN THE DULUTH HEIGHTS NEIGHBORHOOD, AT NO COST TO THE CITY.
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CITY PROPOSAL:
WHEREAS, the city council authorized a development agreement with Duluth Gospel Tabernacle, a Minnesota nonprofit corporation, under Resolution No. 19-0242, which development agreement related to the development of the plat of HARBOR LIGHT and was registered in the Office of the St. Louis County Registrar of Titles on January 23, 2020 as Document No. 10198710 (the “Development Agreement”);
WHEREAS, the Development Agreement required the conveyance of the following described real property in St. Louis County, Minnesota (“Outlot A”):
OutLot A HARBOR LIGHT
EXCEPT minerals and mineral rights in that part thereof formerly
described as part of Lots 29 through 38 Block 4 Kensington Place
Addition to Duluth and EXCEPT minerals in the remainder of Outlot A.
That part of Outlot A formerly described as part of Lots 18-22 Block
4 Kensington Place Addition to Duluth is SUBJECT to mineral rights
reserved by the State of Minnesota by deed filed for record as
Document No 301818 and Microfilm Document No 19639 in the office of
the Register of Deeds
to City, at no cost, for storm water drainage purposes, but City has determined that it does not need the entirety of Outlot A for storm water drainage purposes and that an easement would suffice to grant the City the proper rights to own, operate, maintain, repair and replace certain stormwater improvements constructed within Outlot A (the “Stormwater Improvements”);
WHEREAS, Lotus Realty Services, Inc., a Minnesota corporation (“Lotus Realty”) is now the owner of Outlot A;
WHEREAS, Lotus Realty currently operates the Stormwater Improvements under that certain Storm Water Maintenance Agreement dated November 23, 2020, registered in the Office of the St. Louis County Registrar of Titles on December 1, 2020 as Document No. 1032870 (the “Maintenance Agreement”);
WHEREAS, Lotus Realty and City agreed to modify certain requirements in the Development Agreement relating to the Stormwater Improvements, wetland credits, a regulating plan and Outlot A; and desire to enter into the documents referenced in this resolution to reflect the modified terms and ongoing requirements.
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 I, with Lotus Realty Services, Inc., a Minnesota corporation.
FURTHER RESOLVED, that the proper city officials are hereby authorized to enter into a termination of storm water maintenance agreement, substantially in the form attached as Exhibit II, with Lotus Realty Services, Inc., a Minnesota corporation, to terminate the Maintenance Agreement.
FURTHER RESOLVED, that the proper city officials are hereby authorized to accept a perpetual easement for utility, stormwater and drainage purposes, substantially in the form attached as Exhibit III, from Lotus Realty Services, Inc., a Minnesota corporation, over, under and across the real property legally described on Exhibit A attached to Exhibit III, at no cost to the city.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution: (i) authorizes a first amendment to the development agreement (the “First Amendment”) with Lotus Realty Services, Inc., a Minnesota corporation (“Lotus Realty”), affecting a development project in the Duluth Heights neighborhood off of Arrowhead Road (the “Development Agreement”); (ii) terminates a storm water maintenance agreement and (iii) accepts an easement for utility, stormwater and drainage purposes from Lotus Realty Services, Inc. (the “Easement”), at no cost to the City. The documents being approved affect Outlot A in the plat of HARBOR LIGHT (“Outlot A”).
The original Development Agreement was entered into with Duluth Gospel Tabernacle, a Minnesota nonprofit corporation. Lotus Realty is now the owner of Outlot A and the proper entity to enter into this First Amendment to Development Agreement. The parties desire to modify certain terms and conditions of the Development Agreement to address certain issues and items related to stormwater improvements within Outlot A, wetland credits, the regulating plan (affecting the entire plat of HARBOR LIGHT), and the conveyance of Outlot A.
Lotus Realty constructed certain stormwater improvements within Outlot A (the “Stormwater Improvements”) and is maintaining the Stormwater Improvements under an existing Stormwater Maintenance Agreement. The intent was for the City to take over the ownership, operation and maintenance of the Stormwater Improvements once the City owned Outlot A. However, the Stormwater Improvements are located within the east half of Outlot A, so the City does not need to own the entirety of it and has determined that an easement would suffice to grant the City the proper rights it needs for the Stormwater Improvements. The First Amendment places some restrictions on the future use and development of Outlot A so that it is only used for stormwater purposes and in accordance with the regulating plan. Another benefit to having an easement allows the west half of Outlot A to be used by an owner within the plat of HARBOR LIGHT for its own (private) stormwater purposes. The parties desire to terminate the Stormwater Maintenance Agreement in concurrence with the execution of the Easement.
Once these documents are executed and recorded, Lotus Realty can sell Outlot A to a developer who has immediate plans to construct a facility on a lot with HARBOR LIGHT and utilize the west half of Outlot A for its own stormwater purposes. The City desires to support this important investment in the City of Duluth and can do so through these documents.
Attached as Exhibit IV is a map depicting the boundary of Outlot A, as well as the portion of it included in the Easement.