HomeMy WebLinkAbout[08e] Laundromat MOUMEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding is entered into this day of February, 2011, by
and between the City of St. Joseph, a Minnesota municipal corporation (hereinafter "City"), and
Deutz Housing a Limited Liability Corporation, (hereinafter "Developer "). The purpose of this
document is to memorialize the agreement reached by the City and Developer relative to
charging of water and sewer access fees for the Laundromat project located at 31 Minnesota
Street East and legally described as follows:
Lot 7, Block 9, Townsite of St. Joseph, according to the plat thereof on file with
the Stearns County, Minnesota Recorder (the "Property ")
RECITALS:
WHEREAS, the Developer is the fee owner of the property which is located within the
City of St. Joseph and is in the process of redeveloping the property include a Laundromat; and
WHEREAS, St. Joseph Code of Ordinance 44, Water and Sewer Availability Charges,
establishes charges to pay for the construction, reconstruction, repair, enlargement, improvement
and for the availability of potable water treatment, supply, storage and distribution facilities; and
for wastewater treatment disposal and conveyance facilities; and
WHEREAS, the re- development of the property located at 31Minnesota Street has the
potential to intensify the water and sewer use of the property; and
WHEREAS, Ordinance 44.04 states "Water Availability Charges (WAC) and Sewer
Availability Charges (SAC) shall be based on projected water consumption and sewer usage";
and
WHEREAS, Ordinance 44.05, Table 2, identifies uses along with the type of parameter
used for calculating the number of WAC /SAC; and
WHEREAS, Table 2 identifies that WAC /SAC charges for a Laundromat shall be based
on the water volume per cycle, per washer times 8 cycles per day. The total water volume is
then divided by 274 gallons establishing the number of WAC /SAC to be applied; and
WHEREAS, the developer has submitted the manufacturer's data indicating that based on
20 washers, the total water gallons per day using the 8 cycles per day is anticipated to be 785
gallons which is equal to 2.86 (3) unit charges each for water and sewer (see Exhibit A); and
WHEREAS, it is the policy of the City of St. Joseph that WAC /SAC units paid remain
with the property and can be used as a credit during redevelopment; and
WHEREAS, records show that 2.35 units of SAC and WAC have previously been paid
for the property. There are two dwelling units above the proposed Laundromat. One WAC and
SAC is charges for each dwelling unit. Therefore there are .35 SAC and WAC units paid for the
first floor that are not being used; and
WHEREAS, the City of St. Joseph encourages redevelopment of the downtown area and
does not want to impose fees that are not reflective of the benefit received and have worked with
developers to monitor water usage to validate the WAC /SAC fee provided an agreement is
executed at the time of development.
NOW THEREFORE, in consideration of the mutual promises of the parties expressed
herein, the City and Developer agree as follows:
1. The property has previously been charged WAC /SAC fees equal to 2.35 units with
only two (2) units being utilized at this time, leaving a credit of .35 units.
2. Based on St. Joseph Code of Ordinance 44, the proposed development submitted by
the Developer indicates that three (3) WAC and three (3) SAC units would apply
based on the equipment listed in Exhibit A.
3. The parties agree that one (1) WAC and one (1) SAC, less the credit of .35 will be
due and payable with the building permit. Based on the fee schedule the amount due
is $ 4,225 (WAC /SAC Unit price = $ 6,500 times .65) d
4. The parties further agree that the water usage will be monit red for six (6) full billing
cycles (one year) and if the average water consumption ex eeds the gallons equal to
one unit charge (274 gallons per day), the Developer shal one unit charge for WAC
and SAC for all additional water consumption over 274 gallons per day. The unit
charge shall be derived by subtracting 274 gallons from the twelve month average
water consumption and then dividing by 274. Each 274 gallons or fraction thereof
shall constitute one unit. The unit fee will be that which is in effect at the end of the
twelve (12) month review period. Such payment will be submitted within 30 days of
the billing.
5. This Agreement shall be interpreted under the laws of the State of Minnesota.
6. This Agreement shall be binding upon the heirs, representatives, and assigns of the
parties and shall run with the land.
7. This document memorializes the entire Agreement of the parties relative to
WAC /SAC fees and the requirements set forth in the Ordinance. Any modification of
this Agreement must be in writing to be enforceable.
The parties have executed this Memorandum of Understanding effective as of the date
stated above.
CITY OF ST. JOSEPH
L00
Rick Schultz, Mayor
By:
Judy Weyrens, Administrator
DEUTZ PROPERTIES, LLC
LIM
ITS:
STATE OF MINNESOTA)
)SS
COUNTY OF STEARNS )
Michael Deutz
On this day of February, 2011, before me a notary public within and for said
County, personally appeared Rick Schultz and Judy Weyrens, the Mayor and Administrator for
the City of St. Joseph, a Minnesota municipal corporation.
Notary Public
STATE OF MINNESOTA)
)SS
COUNTY OF STEARNS )
On this day of February, 2011, before me a notary public within and for said
County, personally appeared Rick Schultz and Judy Weyrens, the Mayor and Administrator for
the City of St. Joseph, a Minnesota municipal corporation.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Thomas G. Jovanovich — 5284X
Rajkowski Hansmeier
11 Seventh Avenue North
PO Box 1433
St. Cloud Minnesota 56302
Telephone: (320) 251 -1055
EXHIBIT A
Manufacturer Information
Number Gallons per day
of units Model Number Gallons /Cycle and per cycle
4 HCN060KC2 8.9Gallons /cycle 35.60 gallons
8 HCN030KC2 5.6 Gallons /cycle 44.80 gallons
8 HWFT71 1.59 Gallons /cycle 12.72 gallons
Total water 20 washers/ one cycle 93.12 Gallons
Total water 20 washers /eight cycles 744.96 Gallons
Ordinance 44 Provision
Laundromat —1 unit charge for each 274 gallons per day based on 8 cycles per day per
machine.
794.96 Gallons / 274 Gallons = 2.71 unit charges