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Home My WebLink About2017-243 (Agreement for Payment In Lieu of Real Estate Taxes for Ecumen Stillwater, CPC Case No. 2017-25)RESOLUTION 2017-243 CITY OF STILLWATER WASHINGTON COUNTY, MINNESOTA A RESOLUTION APPROVING AN AGREEMENT FOR PAYMENT IN LIEU OF REAL ESTATE TAXES FOR A PROJECT KNOWN AS ECUMEN STILLWATER CPC CASE NO. 2017-25 WHEREAS, Anne Stanfield of Ecumen has submitted an application for a Final Planned Unit Development and Special Use Permit to develop and operate a Senior Living Facility at 114 Brick Street South and 1616 Olive Street West; and WHEREAS, on November 7, 2017 the City Council approved the Final Planned Unit Development and Special Use Permit with several conditions; and WHEREAS, one condition of approval was that prior to release of the final plat for recording with Washington County, Ecumen must enter into an agreement with the City for payment in lieu of real estate taxes. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Stillwater hereby approves the agreement, which is attached as Exhibit A. Enacted by the City Council of the City of Stillwater, Minnesota this 5th day of December, 2017. CITY OF STI LWATER Ted Kozlowski, ATTEST: Diane F. Ward, City Clerk ayor AGREEMENT THIS AGREEMENT is entered into this` ' day of ��Cernr2.. , 2011 by and between Ecumen, a Minnesota non-profit corporation ("Ecumen"), and the CITY OF STILLWATER (the "City"). WHEREAS, the City has approved a Planned Unit Development and Special Use Permit for Ecumen to develop and operate a senior living facility in the City on the property described in Exhibit "A" (the "Facility"); and WHEREAS, Ecumen, in recognition of the City's approvals, agrees to make certain payments in lieu of taxes to the City if the Facility ever becomes exempt from real property taxes. NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows: SECTION 1. PAYMENTS IN LIEU OF TAXES. In the event that the Facility ever becomes exempt from real property taxes, the owner of the Facility at that time (the "Owner") must pay to the City annual payments in lieu of real property taxes in an amount not to exceed the amount of real property taxes which the City (but not the county, school district, or other taxing authorities) would have assessed against the Facility had it remained under the ownership of a non-exempt organization. SECTION 2. PROCEDURE. In that event, the City will cause the Facility to be valued initially in the month of December of each year and periodically on the same basis and in the same manner as taxable real property in the City is appraised for real estate tax purposes. The City will provide the Owner written notice of the value so determined. Owner shall have the right to contest such valuation in the manner provided by statute for contesting the valuation of taxable real property. The City will annually calculate the amount which would be payable to the City as real property taxes with respect to the Facility and will, on or before March 31 in each year, provide the Owner written notice of the method of calculation, calculation, and the amount so calculated. The Owner agrees to pay the City each year, the amount so calculated as payment in lieu of real property taxes ("PILOT"). The PILOT shall be due and payable on the same dates in each year as real property taxes are due and payable under laws of the State of Minnesota, but shall be paid by the Owner directly to the City. Any portion of the PILOT not paid when due shall bear interest at the same rate, calculated in the same manner, as delinquent real property taxes under the laws of the State of Minnesota. SECTION 3. REIMBURSEMENT. The City acknowledges that the Owner may seek reimbursement from federal and state agencies for part or all of the PILOT. The City agrees to cooperate fully with the Owner, without expense to the City, in the efforts of the Owner to apply for and collect the reimbursement. SECTION 4. TERM. This Agreement will continue in effect for so long as the Facility continues to be operated as a senior living facility, and is and will be binding on the successors, assigns and transferees of the Owner. SECTION 5. GOVERNING LAW. This Agreement will be governed and construed in accordance with the laws of the State of Minnesota. SECTION 6. CHANGE IN OWNERSHIP. Ecumen must provide written notice to the City of the closing of a sale of the property to another owner within 30 days following the closing. The notice must provide the name and address of the new owner and, if known, whether the new owner is or intends to become an entity that is exempt from real property taxes. Thereafter, the obligation to provide this notice to the City will be the obligation of such future Owner. Upon providing the notice required by this Section 6, Ecumen (and each subsequent transferor, upon giving of the required notice) shall be released from any obligations under this Agreement for the giving of notice or for making any PILOT. SECTION 7. NOTICES. All notices, reports or other communications relating to this Agreement must be sent to the parties at the following addresses, unless otherwise provided by one party to the other party in writing: If to Ecumen: If to the City: Ecumen 3530 Lexington Avenue North Shoreview, MN 55126 Attention: City of Stillwater 216 North 4th Street Stillwater, MN 55082 Attention: J. Thomas McCarty -2- IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. CITY OF STILLWATER J. Thomas McCarty Its City Administrator Ecumen, a Minnesota non-profit corporation By Its "► r C l= (22t i z?esc .1l2 vOfta'ii,'e417- (ei -3- Exhibit A LEGAL DESCRIPTION 1616 OLIVE STREET: THAT PT NW1/4-SE1/4 & THAT PT BLK 16 MCKINSTRY & SEELEY'S 2ND ADD & THAT PT VAC OLIVE ST LYING NLY OF N LN OLIVE ST EST IN 1916 LYING W OF W LN BRICK ST IN SINCLAIRS ADD LYING SLY OF SLY LN MYRTLE ST DESC IN DOC 346309 & LYING ELY SLY NELY & ELY OF FOLL DESC LN COM AT NW COR SD MCKINSTRY & SEELEY'S 2ND ADD ALSO BEING NW COR OF SW1/4-SE1/4 SD SEC 29 THN S01DEG00'05"E BRG WACO CORSYS SZ ALG W LN SD SEC 29 & ALSO W LN SD SW1/4-SE1/4 292.06FT TO N LN SD OLIVE ST THN N89DEG19'36"E ALG SD N LN 724FT TO POB THN NOODEG40'24"W 145FT THN NLY ALG TCRV CONC TO W RAD 580FT CENT ANG 12DEG29'53" 126.52FT THN N79DEG17'55"E 133FT THN N18DEG51'25"W 191.13FT THN N29DEG55'38"W 137.04FT THN N10DEG31'47"E 508.18FT TO SD SLY LN MYRTLE ST & SD LN THERE TERM EXC THAT PT SD BLK 16 DESC AS FOLL BEG AT SE COR DEERPATH ACCRD TO REC PLAT THN NOODEG40'24"W PLAT BRG ALG ELY LN SD DEERPATH 145FT THN NLY 76.51FT ALG TCRV CONC TO W RAD 580FT CENT ANG 07DEG33'27" THN N79DEG17'55"E NTANG TO CRV 140.17FT THN S12DEG42'06"E 115.22FT THN SOODEG40'24"E 133FT THN S89DEG19'36"W 157FT TO POB ALSO EXC THAT PT OF N1/2-SE1/4 SD SEC 29 DESC AS FOLL BEG AT PT ON S LN SD N1/2-SE1/4 1081.51FT W OF SE COR SD N1/2-SE1/4 SD PT BEING NE COR BLK 15 MCKINSTRY & SEELEY'S ADD THN W ALG S LN SD N1/2-SE1/4 510.43FT TO PT THN N & PARL WITH W LN SD BRICK ST 309.5FT THN E & PARL WITH S LN SD N1/2-SE1/4 510.43FT TO W LN SD BRICK ST THN S ALG SD W LN 309.5FT TO POB SUBJ TO EASE SECTION 29 TOWNSHIP 030 RANGE 020 LEGAL DESCRIPTION 114 BRICK STREET: PT N1/2-SE1/4 BEG AT PT ON S LN OF SD N1/2-SE1/4 DIST OF 1081.51FT W OF SE COR SD TRCT SD PT BEING THE NE COR OF BLK 15 MCKINSTRY & SEELEYS ADD THN W ON S LN SD TRACT DIST OF 510.43FT TO A PT THN N & PARL WITH W LN OF BRICK ST DIST OF 309.5FT THN E & PARL WITH S LN OF SD TRACT DIST OF 510.43FT TO W LN OF BRICK ST THN S ALG W LN OF BRICK ST DIST OF 309.5FT TO BEG SECTION 29 TOWNSHIP 030 RANGE 020