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#2 Grant a temporary limited easement for an encroachment (File Res. #2012-892) Community Development Department Memorandum Date: March 7, 2012 TO: Janesville City Council FROM: Gale Price, AICP, Manger of Building and Development Services SUBJECT: Action on a proposed resolution granting a temporary limited easement for an encroachment allowing installation of ventilation equipment for a new carry-out restaurant to be located in Suite 120 of 101 East Milwaukee Street (File Resolution 2012-892). _____________________________________________________________________ I. EXECUTIVE SUMMARY Sara Investments, owner of 101 East Milwaukee Street (also known as Prospect 101) has a prospective tenant for a new carry-out restaurant to be located in Suite 120. That space previously was used for a carry-out restaurant but this prospective tenant desires to include an expanded menu which would require a hood and ventilation duct. The most cost effective approach is to exhaust the equipment through the side of the building rather than up through multiple floors. Extending the ductwork out the side of the building requires the City to grant an easement since the adjacent property is owned by the City. II. RECOMMENDATION The Community Development Department recommends that the City Council support a motion to approve Resolution No. 2012-892 granting a temporary limited easement for an encroachment allowing installation of ventilation equipment for a new carry-out restaurant to be located in Suite 120 of 101 East Milwaukee Street. III. CITY MANAGER RECOMMENDATON The City Manager recommends approval. IV. SUGGESTED MOTION Motion to approve file resolution 2012-892, granting a temporary limited easement for an encroachment allowing installation of ventilation equipment for 101 East Milwaukee Street. V. REQUEST Ryan Savasta representing 101 Milwaukee, LLC (Sara Investments Real Estate) who is the principal owner of 101 East Milwaukee Street (also known as Prospect 101) has requested a temporary limited easement for the installation of ventilation equipment at 101 East Milwaukee Street. The proposed temporary limited easement will allow for installation of a cooking hood fan to project out of the north side of the building and would facilitate a new carry-out restaurant within Suite 120. This suite was formerly leased to a carry-out restaurant with a limited food menu. The property affected by the easement is a City-owned parking lot between 101 East Milwaukee and 16 North Main Street (Looking Glass Saloon). The easement would allow the duct work to extend off of the side of the building and over a portion of the parking lot. In order to protect the City’s investment the easement must be temporary and allow the City to require the owner of 101 East Milwaukee to relocate the cooking hood fan if the City or another entity redeveloped the adjacent parking lot. Relocation of the duct work and fan would be needed if a new structure was constructed on the property, which is not anticipated at this time as the parking lot also provides delivery access for the remaining buildings north of the lot including Looking Glass Saloon and Quotes Bar. The easement protects the owner of 101 East Milwaukee Street until such time as the facilities must be moved. VI. ANALYSIS A. Sara Investments desires to fill Suite 120 with a new carry-out restaurant within the building. The most reasonable approach to providing the required hood and fan equipment is to extend outside the building on the north side. Without the easement the fan and duct work would need to extend vertically through the building to the roof. Given the location of the tenant space and the complicated nature of extending vertically through existing rented space, Staff believes that this is a reasonable alternative. The new carry-out restaurant will include a remodel with a new kitchen. New ventilation equipment is necessary to expel grease laden fumes from the space and to meet the requirements of the Wisconsin Commercial Building Code. B. The installation of the ventilation equipment includes a cooking hood over a grill connected to a commercial hood fan that vents to the outside. Because there are existing tenants in the upper floors of the building, it would be difficult to extend the hood duct up through the building envelope. Because the property line between the City-owned parking lot and 101 East Milwaukee is immediately adjacent to the exterior wall of the building, an easement allowing the encroachment is required. That easement would be temporary in nature to prevent any structural encroachment within 10 feet of the hood fan. C. The commercial building code allows such encroachments to occur when there is an easement in place to protect the parties. A 14 foot by 37 foot easement at the northwest corner of 101 East Milwaukee is proposed. The 14 foot dimension for the fan encroachment is identified since the clear area around the hood fan must be 10 feet beyond the hood fan, which is 3.5 feet in length. D. The easement is temporary in nature to protect the City’s interest in the real estate between 101 East Milwaukee and 16 North Main Street. If the City or another owner was to redevelop the property with a building that extended up to the property line and the exterior of the building, a permanent easement would prevent any building from being within 14 feet of the exterior of the building where the hood is. With this temporary easement the City can require the owner of 101 East Milwaukee Street and/or the carry-out restaurant owner to remove the hood fan within 90 days of a written request of the City and the equipment must be relocated to meet the requirements of the Wisconsin Commercial Building Code. Since the easement is temporary in nature and no City assistance has been given to the project, the City will not charge a fee for the easement. The easement will not affect the parking within the lot as that activity does not qualify as a “structure” and is permitted to continue. VII. PLAN COMMISSION RECOMMENDATON The Plan Commission reviewed this request at its March 5, 2012 meeting and . unanimously voted to forward the request with a recommendation for approval cc: Eric Levitt Jacob J. Winzenz RESOLUTION NO. 2012-892 A resolution granting a temporary limited easement for an encroachment of installation of ventilation equipment for 101 East Milwaukee Street, Suite 120 affecting property between 101 East Milwaukee Street and 16 North Main Street (File Resolution No. 2012-892). WHEREAS , the City of Janesville, a Wisconsin Municipal Corporation located in Rock County, Wisconsin is the owner of property located between 101 East Milwaukee Street and 16 North Main Street and grants the temporary limited easement as described on the attached Exhibit A; and WHEREAS , 101 Milwaukee Street, LLC, an Wisconsin Domestic Limited Liability company, owner of real estate located at 101 East Milwaukee Street and the prospective tenant in a first floor carry-out restaurant use have requested that the City grant to them a temporary limited easement to facilitate the installation of ventilation equipment for a cooking hood fan for a carry-out restaurant to be located at 101 East Milwaukee Street, Suite 120; and WHEREAS , the City of Janesville Community Development staff have determined that the location of the proposed easement does not conflict with the current or planned future use of city-owned lands in the easement area; and WHEREAS , the easement is revocable by the City as upon written request by the City to the owner of the real estate located at 101 East Milwaukee and the carry-out restaurant owner in Suite 120 at 101 East West Milwaukee Street will be required to remove the hood fan encroachment from the north wall of 101 East Milwaukee Street at their own expense. Furthermore the hood fan shall be required to relocated in accordance with the Wisconsin Commercial Building Code and the exterior wall returned to a code compliant fire wall, all at the expense of the owners of 101 East Milwaukee Street and/or the owner of the carry-out restaurant located at 101 East Milwaukee Street, Suite 120; and WHEREAS ; the redevelopment of Suite 120 within 101 East Milwaukee Street represents a significant investment in the property without City assistance and since the easement is temporary nature, the City shall not require payment for the easements covering the encroachments as described; and WHEREAS , the Janesville Plan Commission, pursuant to Section 62.23, Wisconsin State Statutes, reviewed the granting of the easements to 101 Milwaukee Street, LLC and found the easement to be consistent with City Plans but did not review the financial aspects of the transaction; and WHEREAS , providing these easements are in the best interest of the City and its residents; and NOW THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF JANESVILLE that the City of Janesville hereby grants the easements to 101 Milwaukee Street, LLC as described in Exhibit A attached hereto and made a part hereof; and BE IT FURTHER RESOLVED that the City Manager and City Clerk of the City of Janesville are hereby authorized to negotiate, draft, enter into, and execute, on behalf of the City of Janesville, the proposed easements between the City and 101 Milwaukee Street, LLC, and prepare and file such other documents, forms, and papers pertaining to this transaction as may, from time to time, be necessary or desirable to effectuate the intent of this resolution and/or easements. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Dongarra-Adams Liebert Eric J. Levitt, City Manager McDonald Rashkin ATTEST: Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: 101 Milwaukee Street, LLC Prepared by: Community Development Department EXHIBIT A ATTACHMENT TO RESOLUTION NO. 2012-892 TEMPORARY LIMITED EASEMENT FOR AN ENCROACHMENT OF INSTALLATION OF VENTILATION EQUIPMENT FOR 101 EAST MILWAUKEE STREET LEGAL DESCRIPTION Easement Area: The Grantor shall grant a 14-foot wide Temporary Limited non-exclusive easement for an encroachment for the installation of ventilation equipment within the following described area: LOCATED ON LOT 7, BLOCK 34, ORIGINAL PLAT, CITY OF JANESVILLE, ROCK COUNTY, WISCONSIN DESCRIBED AS FOLLOWS: Commencing at a drillhole in concrete at the most Southerly corner of said Block 34; thence N.39˚48’15”W. along the SW Line of said Block 92.80 feet to the most Westerly Corner of a parcel described in Document No. 1834900, also being at the place of beginning for the easement to be herein described; thence N.39˚48’15”W. continuing along said SW Line 14.00 feet; thence N.50˚06’10”E. 37.00 feet; thence S.39˚48’15”E. 14.00 feet to a line of said Parcel thence S.50˚06’10”W. along said Line of said Parcel 37.00 feet to the place of beginning. NOTE: The above description is subject to any and all existing easements and agreements, recorded or unrecorded. NOTE: The granting of these easements are subject to the following conditions as outlined in City of Janesville Common Council authorization Resolution No. 2012-892: The easement is revocable and may be fully and forever terminated by the City, at no cost or expense to the City, at any time upon written notice from the City to the current or future owner of the real property located at 101 East Milwaukee. Building owner of 101 East Milwaukee and/or restaurant owner in Suite 120 will be required to remove the hood fan north wall of 101 East Milwaukee Street at their own expense. Furthermore the hood fan shall be required to relocated in accordance with the Wisconsin Commercial Building Code and the exterior wall returned to a code compliant fire wall, all at the total cost and expense of the owner of 101 East Milwaukee Street and/or the owner/operator of the carry out restaurant 101 East Milwaukee Street, Suite 120. The redevelopment of Suite 120 within 101 East Milwaukee Street represents a significant investment in the property without City assistance. Because the easement is of a temporary nature and because the renovation project cannot move forward without the easement from the City, by accepting this limited non-exclusive easement the grantee, for himself and each and every of grantee’s heirs, executors, and assigns acknowledges and agrees that the City shall not require payment for the easements covering the encroachments as described but such development, investment and easements create no current or future liability or payment of any kind for the City. STATE BAR OF WISCONSIN FORM 2 – 1982 TEMPORARY LIMITED Document No. ENCROACHMENT EASEMENT CITY OF JANESVILLE Hereby grants unto 101 Milwaukee Street, LLC, an Wisconsin Domestic Limited Liability company a temporary non-exclusive limited encroachment easement for the installation of ventilation equipment on the north side of a structure located at 101 East Milwaukee Street in the City of Janesville, County of Rock, State of Wisconsin. Easement allows Ingress To, and Egress From Same, Including But Not Limited To, Construction, Installation, Repair, Reconstruction, and Maintenance of ventilation equipment only for the uses within 101 East Milwaukee Street Over, upon and over, the following described City of Janesville owned real estate in Rock County, State of Wisconsin: RETURN TO: Jean Ann Wulf City Clerk - Treasurer City of Janesville P.O. Box 5005 Janesville, WI 53547-5005 0136100277 TAX PARCEL IDENTIFICATION NO. -- REFER TO ATTACHED PAGE 2 -- Dated this ____________________ day of March, 2012. Conveyance is exempt from the fee because of s. 77.25(2g) and/or (2r). CITY of Janesville (SEAL) (SEAL) * * By: Eric J. Levitt, City Manager (SEAL) * (SEAL) * By: Jean Ann Wulf, City Clerk-Treasurer AUTHENTICATIONACKNOWLEDGEMENT Signature(s) STATE OF WISCONSIN ) ROCK COUNTY ) SS. Authenticated this day of, Eric J. Levitt and Jean Ann Wulf PERSONALLY CAME BEFORE ME THIS day of * March, 2012, the above named TITLE: MEMBER STATE BAR OF WISCONSIN (IF NOT, AUTHORIZED BY S.S. 706.06, WIS. STATUTES) To me known to be the person(s) who executed the foregoing instrument And acknowledged the same. THIS INSTRUMENT WAS DRAFTED BY: WALDEMAR KLIMCZYK, CITY ATTORNEY By: CITY OF JANESVILLE Notary Public, Rock County, Wis. 18 NORTH JACKSON ST, P.O. BOX 5005 JANESVILLE, WI 53547-5005 My Commission is permanent. (If not, state expiration date): (608) 755-3155 Date: 7/29/10 , (Signatures may be authenticated or acknowledged. Both are not necessary.) *Names of persons signing in any capacity should be typed or printed below their signatures. TEMPORARY LIMITED EASEMENT CITY OF JANESVILLE FOR 101 MILWAUKEE STREET, LLC 101 EAST MILWAUKEE PAGE 2 Easement Area: The Grantor shall grant a 14-foot wide Temporary Limited non-exclusive easement for an encroachment for the installation of ventilation equipment within the following described area: LOCATED ON LOT 7, BLOCK 34, ORIGINAL PLAT, CITY OF JANESVILLE, ROCK COUNTY, WISCONSIN DESCRIBED AS FOLLOWS: Commencing at a drillhole in concrete at the most Southerly corner of said Block 34; thence N.39Û48’15”W. along the SW Line of said Block 92.80 feet to the most Westerly Corner of a parcel described in Document No. 1834900, also being at the place of beginning for the easement to be herein described; thence N.39Û48’15”W. continuing along said SW Line 14.00 feet; thence N.50Û06’10”E. 37.00 feet; thence S.39Û48’15”E. 14.00 feet to a line of said Parcel thence S.50Û06’10”W. along said Line of said Parcel 37.00 feet to the place of beginning. NOTE: The above description is subject to any and all existing easements and agreements, recorded or unrecorded. NOTE: The granting of these easements are subject to the following conditions as outlined in City of Janesville Common Council authorization Resolution No. 2012-892: The easement is revocable and may be fully and forever terminated by the City, at no cost or expense to the City, at any time upon written notice from the City to the current or future owner of the real property located at 101 East Milwaukee. Building owner of 101 East Milwaukee and/or restaurant owner in Suite 120 will be required to remove the hood fan north wall of 101 East Milwaukee Street at their own expense. Furthermore the hood fan shall be required to relocated in accordance with the Wisconsin Commercial Building Code and the exterior wall returned to a code compliant fire wall, all at the total cost and expense of the owner of 101 East Milwaukee Street and/or the owner/operator of the carry out restaurant 101 East Milwaukee Street, Suite 120. The redevelopment of Suite 120 within 101 East Milwaukee Street represents a significant investment in the property without City assistance. Because the easement is of a temporary nature and because the renovation project cannot move forward without the easement from the City, by accepting this limited non-exclusive easement the grantee, for himself and each and every of grantee’s heirs, executors, and assigns acknowledges and agrees that the City shall not require payment for the easements covering the encroachments as described but such development, investment and easements create no current or future liability or payment of any kind for the City.