HomeMy Public PortalAbout2022-86 - Resolution_Approving_Settlement_AgreementResolution 2022-86
October 18, 2022
Member Martin introduced the following resolution and moved its adoption:
CITY OF MEDINA
RESOLUTION NO. 2022-86
RESOLUTION APPROVING
SETTLEMENT AGREEMENT AND MUTUAL RELEASE
WHEREAS, the city of Medina (the “City”) is presently engaged in litigation in Hennepin
County District Court (Court File No. 27-CV-21-7210) with North Metro Companies LLC, The
Robert J. Muller Trust U/A/D June 4, 2004 and The Lawrence L. Pribyl Revocable Trust; and
WHEREAS, the litigation was initiated by the City due to violations of the City’s
ordinances on real property located at 2402 State Trunk Highway 55, Medina, Minnesota; and
WHEREAS, the parties have negotiated a settlement of the dispute, the terms of which are
contained into the Settlement Agreement and Mutual Release attached hereto as Exhibit A; and
WHEREAS, the city council determines it is in the best interests of the public and the
City’s taxpayers to approve and execute the Settlement Agreement and Mutual Release and bring
an end to the litigation.
NOW, THEREFORE, BE IT RESOLVED, that the city council of the city of Medina
hereby approves the Settlement Agreement and Mutual Release in substantially the form as
attached hereto as Exhibit A.
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the mayor and city
administrator are hereby authorized and directed to sign the Settlement Agreement and Mutual
Release when presented for signature by the city attorney.
NOW, THEREFORE, BE IT FINALLY RESOLVED, that the mayor, city
administrator, and city attorney are hereby authorized and directed to take any and all additional
steps and actions necessary or convenient to finalize the appropriate documents and/or agreements
to facilitate the settlement of this matter as provided herein and the City’s officers, employees, and
consultants are authorized to take such steps as are needed to carry out the terms of the final
settlement agreement.
Dated: October 18, 2022.
Kathleen Martin, Mayor
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Resolution 2022-86
October 18, 2022
ATTEST:
Scott T. Johnson, City Administrator-Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
Reid and upon vote being taken thereon, the following voted in favor thereof:
Albers, Martin, Reid
and the following voted against same: (Absent: Cavanaugh, DesLauriers)
None
Whereupon said resolution was declared duly passed and adopted.
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EXHIBIT A
SETTLEMENT AGREEMENT AND MUTUAL RELEASE
This Settlement Agreement and Mutual Release (“Settlement Agreement”) is made by
and among the City of Medina (“City”), North Metro Companies, LLC, Robert J. Muller, or
successor(s), as Trustee of The Robert J. Muller Trust U/A/D June 4, 2004 and The Lawrence L.
Pribyl Revocable Trust (collectively “the Parties”).
RECITALS
WHEREAS, Robert J. Muller, or successor(s), as Trustee of The Robert J. Muller Trust
U/A/D June 4, 2004 and the Lawrence L. Pribyl Revocable Trust (“Owners”) each own a one-half
interest in the property located in Hennepin County at 2402 State Trunk Highway 55 in Medina,
Minnesota (PID No. 04-118-23-41-0001) (“Subject Property”) legally described as:
All that part of the Southeast Quarter of Section Four (4), Township One Hundred
Eighteen (118), Range Twenty-three (23), lying Northeasterly of State Trunk
Highway No. 55, according to the United States Government Survey thereof and
situate in Hennepin County, Minnesota.
(Abstract Property)
WHEREAS, North Metro Companies LLC (“North Metro”) is a duly organized limited
liability company under Minnesota Statutes Chapter 322C and has been operating a landscaping
business on the Subject Property since approximately 2013.
WHEREAS, planning and zoning controls for the Subject Property are governed by the
Medina City Code.
WHEREAS, in 2010 the Subject Property was re-zoned and designated as part of the City’s
Commercial-Highway (C-H) District.
WHEREAS, based on the re-zoning of the Subject Property in 2010, the Subject Property
became subject to the following exterior storage restrictions in Section 838.5.08, Subd. 17 of the
City Code:
a) Outside storage shall not be permitted on parcels less than 3 acres in size.
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b) The area of storage shall not exceed an area equal to 10 percent of the gross
area of the lot or 20 percent of the footprint area of the principal structure,
whichever is less.
c) The area of storage shall not be located within the front yard or a side yard
adjacent to a right-of-way.
d) The area of outside storage shall be set back a minimum of 50 feet from all
property lines, and a minimum of 100 feet from a residential zoning district.
e) The area of storage shall be surfaced with a material approved by the city, and
may not be gravel.
f) The area of storage shall be fully screened from neighboring properties and
from the right-of-way. If a fence is used for screening, additional landscaping
shall be required adjacent to the area of storage, which shall not be counted
towards the landscaping requirements of the site. Similarly, if natural
screening is utilized, these plantings shall not be counted towards landscaping
requirements.
WHEREAS, the tenants on the Subject Property in 2010 had exterior storage that exceeded
the above restrictions contained in Section 838.5.08, Subd. 17 of the City Code.
WHEREAS, the exterior storage on the Subject Property in 2010 was limited to a fenced-
in area that is represented on the aerial photograph from the Hennepin County GIS website and
attached hereto as Exhibit A.
WHEREAS, North Metro currently rents the Subject Property from the Owners and allows
landscaping inventory and materials to be stored on the Subject Property that exceeds the
restrictions contained in Section 838.5.08, Subd. 17 of the City Code as well as the exterior storage
maintained by the prior tenants on the Subject Property in 2010.
WHEREAS, the City commenced an action in Hennepin County District Court entitled
City of Medina v. North Metro Companies LLC, Robert J. Muller, or successor(s), as Trustee of
The Robert J. Muller Trust U/A/D June 4, 2004 and The Lawrence L. Pribyl Revocable Trust
(Court File No. 27-CV-21-7210) seeking declaratory and injunctive relief against the Owners and
North Metro to force them to comply with the City Code.
WHEREAS, the Owners and North Metro asserted a defense to the lawsuit claiming a legal
nonconforming use which would allow exterior storage on the Subject Property over the entire
property as well as asserting various claims in a counterclaim against the City.
WHEREAS the Parties mutually desire to fully compromise, settle, and resolve all
existing and potential disputes and to avoid the expense of further litigation.
NOW, THEREFORE, in consideration of the promises and covenants hereinafter
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contained, and intending to be legally bound hereby, the Parties agree as follows:
1. Stay of Enforcement Action. Pursuant to the rights and obligations outlined
herein, the City agrees to forego enforcement of the City Code against the Owners and North
Metro with regard to the exterior storage limitations outlined in Section 838.5.08, Subd. 17 of
the City Code until October 10, 2023.
2. Acknowledgement of a Legal Nonconforming Use on Subject Property. The
parties hereby acknowledge that the exterior storage area on the Subject Property in 2010 as
depicted in Exhibit A attached hereto hereby constitutes a legal nonconforming use on the
Subject Property and the Subject Property shall retain all rights associated therewith in the
future. The Parties agree that the area of the legal nonconforming use in Exhibit A consists
of approximately 137,468 square feet. Notwithstanding the foregoing, the Owners have
requested that said area be slightly modified without any increase in size to accommodate site
conditions, and to that end, the Parties agree to a minor modification to said area, which is
depicted in Exhibit B attached hereto.
Within 30 days of the execution of this Settlement Agreement, the Parties agree to
specifically identify the location of the legal nonconforming use on the Subject Property, as
depicted in Exhibit B. The City, its employees or contractors, may enter onto the Subject
Property and have a survey prepared for purposes of legally describing the legal
nonconforming use and such legal description will be attached hereto as Exhibit C prior to
recording. Commencing on October 31, 2023, the Owners and North Metro agree to limit all
exterior storage on the Subject Property to the legal nonconforming rights agreed to and
referenced herein, as generally depicted on Exhibit B and legally described in Exhibit C
attached hereto. This legal nonconforming use shall be subject to all applicable laws related
to the same, including but not necessarily limited to, that it cannot be expanded in the future
and it may be extinguished in whole or in part if any portion of the area is not used for exterior
storage for at least one year.
Finally, the Parties acknowledge and agree that absent any future amendment to the
City’s land use controls expressly permitting otherwise, outdoor storage on the Subject
Property is only permitted in the exterior storage area depicted on Exhibit B and legally
described in the survey on Exhibit C.
3. Physical Demarcation of Legal Nonconforming Use. Prior to October 31, 2023,
either the Owners shall install a fence or other permanent physical indicators that identify the
boundaries of the legal nonconforming use depicted on Exhibit B and legally described in
Exhibit C, which will delineate the physical limitations for allowable outdoor storage. The
Owners are responsible for the installation and ongoing maintenance of such physical
indicators that identify the boundaries of the legal nonconforming use acknowledged herein.
4. Lease Provisions. The Owners shall include in all future leases for the Subject
Property a provision putting the prospective tenant(s) on notice of the specific limitation on
exterior storage on the Subject Property along with the tenant(s) obligation to comply with
the limitation. Upon a request from the City, the Owners will provide the City with a copy of
any lease for the Subject Property to confirm that such provisions are included in the lease.
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5. Mutual Release. Upon the execution of this Settlement Agreement, the Parties
hereby release and discharge each other and their respective heirs, predecessors, successors,
assigns, agents, employees, principals, representatives and attorneys, and all others claiming an
interest on their behalf, from any and all claims, causes of action, suits, proceedings, debts,
judgments, damages, attorneys fees, costs, levies, executions and demands of any nature, in law or
equity, whether known or unknown, liquidated or unliquidated, fixed, vested, contingent, direct or
indirect, which the Parties have had, currently have, or may have or may claim to have against
each other relating to or arising out of the facts and circumstances alleged by the Parties in this
action or could have been alleged in this action.
6. Dismissal of Pending Action. Upon approval and execution of this Settlement
Agreement, the Parties agree to execute a stipulation for dismissal with prejudice of the
pending action in Hennepin County District Court entitled City of Medina v. North Metro
Companies LLC, Robert J. Muller, or successor(s), as Trustee of The Robert J. Muller Trust U/A/D
June 4, 2004 and The Lawrence L. Pribyl Revocable Trust and incorporate the Parties’ obligation
to comply with the terms of the Settlement Agreement in the order dismissing the action.
7. No Admission of Liability. This Settlement Agreement is not and shall not be
construed as an admission of liability or wrongdoing by any party hereto.
8. Mutual Non-Disparagement. The Parties to this Settlement Agreement agree
that they will make no disparaging and defamatory remarks, either orally or in writing
regarding the other parties in any respect or make any disparaging and defamatory comments
concerning any aspect of their relationship or the conduct or events which precipitated the
negotiation of this Settlement Agreement. This provision will not prevent either party from
being required to provide factual information as required by law or court order.
9. Entire Agreement, Successors in Interest, and Waiver. This Settlement
Agreement contains the entire agreement and understanding of the Parties hereto, and
supersedes all prior oral and written communications, agreements, and understandings
between the Parties with respect to its subject matter. The Parties each represent that they
rely wholly on their own judgment, belief, and knowledge of their rights and obligations
related to the subject matter of the Settlement Agreement and that, in making the Settlement
Agreement, they have not been influenced to any extent by any representations or statements
made by each other or by any third party that are not expressly set forth herein. The rights
and obligations herein shall be binding upon and inure to the benefit of the successors and
assigns of each party. The provisions of this Settlement Agreement may only be waived,
modified, or amended by the written agreement duly executed by all parties.
10. Legal Counsel. The Parties hereto hereby warrant and represent that they have
consulted with and received advice from legal counsel of their choice with respect to this
Settlement Agreement. Further, that each has thoroughly read and understand the terms of
this Settlement Agreement and that each are voluntarily entering into this Settlement
Agreement to resolve all claims associated with the Lawsuit.
11. Costs of Enforcement. The prevailing party in any lawsuit arising out of or relating
to the interpretation and/or enforcement of this Settlement Agreement shall be allowed recovery
of all reasonable costs, expenses, and disbursements, reasonable attorneys' fees, and reasonable
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expert fees incurred in such lawsuit.
12. Governing Law. This Settlement Agreement shall be construed and enforced
in accordance with the laws of the State of Minnesota, irrespective of principles of conflicts
and/or choice of law.
13. No Construction Against Drafter. This Agreement shall be considered as
drafted jointly by the parties hereto, and no uncertainty or ambiguity found in the terms hereof
shall be construed for or against any party based on an attribution of drafting to any party.
14. Warranty of Capacity to Execute Agreement. Each of the undersigned persons
that is executing this document on behalf of an entity represents and warrants that he or she is
authorized by the entity, and has the full legal authority, to do so.
15. Agreement to Run with Land. This Settlement Agreement may be recorded
among the land records of Hennepin County, Minnesota. The provisions of this Settlement
Agreement shall run with the Subject Property and be binding upon the Owners and their
assigns or successors in interest. It is the intent of the Parties that this Settlement Agreement
be in a form which is recordable among the land records of Hennepin County, Minnesota and
the Parties agree to make any changes in this Settlement Agreement which may be necessary
to effect the recording and filing of this Settlement Agreement against the title of the Subject
Property.
16. No Assignment. This Settlement Agreement may not be assigned by any of the
Parties.
17. Counterparts/Electronic Signatures. This Agreement may be executed by facsimile
and/or scanned signature and in any number of counterparts, each of which shall constitute one
and the same instrument.
18. Attorneys’ Fees and Expenses. Each party shall be responsible for their own
attorneys’ fees or expenses in connection with the pending action and the negotiation of this
Settlement Agreement.
[Signatures appear on following pages]
S-1
NORTH METRO COMPANIES, LLC
By:
Name:
Its:
STATE OF MINNESOTA )
) SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of ,
2022, by , the of North Metro Companies, LLC, a
Minnesota limited liability company, on behalf of said company.
Notary Public
S-2
ROBERT J. MULLER TRUST
U/A/D June 4, 2004
By:
Name:
STATE OF MINNESOTA )
) SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of ,
2022, by , in his/her capacity as Trustee of the Robert J. Muller Trust
U/A/D June 4, 2004, on behalf of said trust.
Notary Public
S-3
LAWRENCE L. PRIBYL REVOCABLE TRUST
By:
Name:
STATE OF MINNESOTA )
) SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of ,
2022, by , in his/her capacity as Trustee of The Lawrence L. Pribyl
Revocable Trust, on behalf of said trust.
Notary Public
S-4
CITY OF MEDINA
By:
Kathleen Martin, Mayor
By:
Scott T. Johnson, City Administrator
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of , 2022,
by Kathleen Martin, the mayor of the city of Medina, a Minnesota municipal corporation, on behalf
of the municipal corporation.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of , 2022,
by Scott T. Johnson, the city administrator of the city of Medina, a Minnesota municipal corporation,
on behalf of the municipal corporation.
Notary Public
A-1
Exhibit A
2010 Aerial Photograph of Legal Nonconforming Use
on Property Located at 2402 State Trunk Highway 55 in Media MN
B-1
Exhibit B
Allowable Outdoor Storage Area
on Property Located at 2402 State Trunk Highway 55 in Medina MN
C-1
Exhibit C
Survey of Allowable Outdoor Storage Area
on Property Located at 2402 State Trunk Highway 55 in Medina MN
[to be inserted]