Authorizing a partial release of development agreement with Hunter Valley Estates LLC for Hunter Valley Estates.

Hunter Valley Estates LLC (Owner) owns real property described as Hunter Valley Estates (the Property) lying south of 55th St NW and west of 18th Ave NW. A predecessor in title to the Property and City entered into a development agreement for the Property that was authorized by the Council on April 3, 2023, and was recorded in the Olmsted County Recorder's Office on May 8, 2023 as Document Number A1585574.

The development plan submittal, the review and approval processes for development of the Property, as well as the creation of Agreement A1585574 occurred over a span of many years dating back to 2016. When the development agreement was started in 2016, the City's practice based on guidance from the City Attorney at that time, was to include a Noise Easement as part of development agreements when projects included a residential component and were in the vicinity of higher-level roadways such as 55th St NW and 18th Ave NW.

With a change in City Attorney in 2018, the legal guidance for requiring Noise Easements changed and they have not been included in development agreements initiated since that time. The inclusion of a Noise Easement in Agreement A1585574 was the result of the document being initiated in 2016 and then on hold for many years versus it being an obligation intentionally applied to the Property when the development agreement was being finalized in 2023.

The Owner has requested the City release the Property from the obligations of the Noise Easement included as part of Agreement A1585574. The Public Works team and the City Attorney support the Owner's request and believe that a partial release of Agreement A1585574 would be appropriate. A partial release of Agreement A1585574, limited to releasing the Property from the obligations of the Noise Easement component, has been drafted by Public Works, reviewed by the City Attorney, and provided to the Owner for execution. Public Works recommends approval of this partial release.

Execution of a partial release of development agreement to release the Property from obligations of the Noise Easement will ensure that the Property is treated consistent with the City's current practice of not requiring Noise Easements for new development.

April 3, 2023: Council Meeting - Development Agreement for Hunter Valley Estates approved

The owner will pay for recording of the Partial Release of Development Agreement.

No alternative actions are suggested at this time.