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HomeMy WebLinkAbout5J - Development Contract with CJF Holdings, LLC ti PR~ t"~ 4646 Dakota Street S.E. U'W'" Priod.ake, MN 55372-1714 ~ MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT MAY 19, 2008 5J JEFF MATZKE, PLANNER CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING EXECUTION OF A DEVELOPMENT CONTRACT WITH CJF HOLDINGS LLC Introduction In order to facilitate the construction of the Performance Construction building on Welcome Avenue, a Development Contract between the City and the Developer is necessary. This agenda report recommends approval of the Development Contract. Historv The City completed a wellhead protection evaluation that strongly recommended all wells and septic systems in the Welcome Avenue area be. replaced with City sewer and water. We have been working with four property owners in the area to accomplish this objective. CJF Holdings LLC is proposing construction of a new building on the property located on Welcome Avenue, north of CSAH 21, east of Industrial Circle, west of Rainbow Parkway, and south of Markley Lake. In order to construct this building, the Developer will be extending sewer and water services from the existing utilities located northeast of Industrial Circle. This work requires a Development Contract between the City and the Developer. Current Circumstances The proposed construction site on Welcome Avenue is currently not served by sewer and water. Development of this site requires extension of these utilities. The services are not immediately adjacent to the site, and must be extended from the property to the north and east of Prior Lake Baptist Church. The utility extension will not only serve this site, but also allow other properties to be connected to sewer and water. This is especially important in this area because it is part of the City's wellhead protection area. Additionally, the extension of utilities will allow further development of other properties within the industrial park. The Development Contract includes provisions for the payment of the standard development fees of $110,617. The Contract also requires a security of $447,406 for the utility work and other site requirements. Furthermore, the Contract outlines the provisions for reimbursing the Developer for the cost of the utility extension. This reimbursement occurs in two phases. The City will immediately reimburse the Developer $175,950 for the extension of utilities to Industrial Circle. Second, the City will reimburse the Developer a total of $201,354 as connection fees are collected from other properties in the area. These amounts are based on the current bids received by the Developer. If the utility oversizing costs are less than projected, the Developer will reimburse www.cityofpriorlake.com phtyr\~>'9"52'.~4-"1~9$.(ro!i?e'Fii~95?'4~o/:lt~45grcurnunt )( . the City for the final oversizing disbursement. In any event, any reimbursement over these amounts would have to be approved by the City Council as an amendment to the Development Contract. ISSUES: The proposed Development Contract allows the construction of the CJF Holdings LLC building, and also provides for the extension of utilities to this industrial park. FINANCIAL IMPACT: The City will reimburse the Developer a total of $377,304, out of the sewer and water utility funds. The development fees of $110,617 will be deposited in the appropriate funds. ALTERNATIVES: The City Council has the following alternatives: 1. Adopt a Resolution authorizing execution of a Development Contract with the Performance Construction Company. 2. Deny the Resolution authorizing the Development Contract. 3. Defer this item and provide staff with specific direction. Staff recommends Alternative #1. RECOMMENDED MOTION: A motion and second to adopt a Resolution authorizing the execution of a Development Contract for CJF Holdings LLC and authorizing the Mayor and City Manager to sign the Development Contract. Re~?fJ) Frank BOY;! ell) , anager f) 19 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 08-xx AUTHORIZING EXECUTION OF A DEVELOPMENT CONTRACT WITH CJF HOLDINGS LLC WHEREAS, Second By: Motion By: The City of Prior Lake has approved a site plan for the future Performance Commercial site on the property legally described as follows: That part of the East Three-Fourths of the Southeast Quarter of Section 1, Township 114, Range 22, Scott County, Minnesota described as follows: Commencing at the southeast comer of said Section 1; thence on an assumed bearing of North 01 degrees 21 minutes 00 seconds West along the east line of said Section 1, a distance of 1251.72 feet; thence South 88 degrees 39 minutes 00 seconds West a distance of 1875.73 feet; thence South 86 degrees 11 minutes 30 seconds West a distance of 84.66 feet to the east line of the west 30.00 feet of said East Three-Fourths of the Southeast Quarter; thence North 86 degrees 11 minutes 30 seconds East a distance of 514.66 feet; thence bearing South a distance of 704.31 feet to the centerline of County State Aid Highway No. 12; thence South 63 degrees 37 minutes 56 seconds East along said centerline a distance of73.66 feet; thence bearing North a distance of 412.00 feet; thence bearing East a distance of 670.15 feet to the point of beginning of the land to be described; thence bearing North a distance of 224.00 feet; thence bearing East a distance of 273.86 feet; thence bearing South a distance of 604.00 feet; thence bearing West a distance of280.00 feet; thence bearing North a distance of 105.45 feet; thence along a tangential curve, concave to the east, having a radius of 491.08 feet, a central angle of 15 degrees 00 minutes 00 seconds, an arc length of 128.57 feet; thence along a reverse curve concave to the west, having a radius of 569.68 feet, a central angle of 15 degrees 00 minutes 00 seconds, an arc length of 149.15 feet more or less to the intersection with a line bearing East from the point of beginning; thence bearing West a distance of30.00 feet to the point of beginning. EXCEPTING THEREFROM the following described property: That part of the East Three-Fourths of the Southeast Quarter of Section 1, Township 114, Range 22, Scott County, Minnesota, described as follows: Commencing at the southeast comer of said Section 1; thence on an assumed bearing of North 01 degrees 21 minutes 00 seconds West along the east line of said Section 1, a distance of 1251.72 feet; thence South 88 degrees 39 minutes 00 seconds West a distance of 1875.73 feet; thence South 86 degrees 11 minutes 30 seconds West a distance of84.66 feet to the east line of the west 30.00 feet of said East Three-Fourths of the Southeast Quarter; thence North 86 degrees 11 minutes 30 seconds East a distance of 514.66 feet; thence bearing South a distance of 704.31 feet to the centerline of County State Aid Highway No. 12; thence South 63 degrees 37 minutes 56 seconds East along said centerline a distance of 73.66 feet; thence bearing North a distance of 412.00 feet; thence bearing East a distance of 944.00 feet; thence south a distance of 320.00 feet to the point of beginning of the land to be described; thence continuing South a distance of 60.00 feet; thence West a distance of 250.00 feet; thence North a distance of 60.00 feet; thence East a distance of250.00 feet to the point of beginning. Together with a nonexclusive easement for roadway over and across that part of the East Three-Fourths of the Southeast Quarter of Section 1, Township 114, Range 22, Scott County, Minnesota, described as follows: A strip of land 60.00 feet in width the centerline of which is described as follows: Commencing at the southeast comer of said Section 1; thence on an assumed bearing of North 01 degrees 21 minutes 00 seconds West along the east line of said Section 1, a distance of 1251.72 feet; thence South 88 degrees 39 minutes 00 seconds West a distance of 1875.73 feet; thence South 86 degrees 11 minutes 30 seconds West a distance of 84.66 feet to the east line of the west 30.00 feet of said East Three-Fourths of the Southeast Quarter; thence www.cityofpriorlake.com phB{\~' ~S^2!W41f(986'lP 'r;lp~)t95'2'5?tflJ1: It'24SSJ loem e nl. [)()C North 86 degrees II minutes 30 seconds East a distance of 514.66 feet; thence South a distance of 704.31 feet to the centerline of County State Aid Highway No. 12; thence South 63 degrees 37 minutes 56 seconds East along said centerline a distance of 73.66 feet; thence North a distance of 412.00 feet; thence East a distance of 700.15 feet to a point hereinafter referred to as point "A", the point of beginning of the line to be described; thence North a distance of 325.00 feet; thence along a tangential curve concave to the west having a radius of 455.74 feet, a central angle of 15 degrees 00 minutes 00 seconds, an arc length of 119.31 feet; thence along a reverse curve concave to the east having a radius of 424.68 feet, a central angle of 15 degrees 00 minutes 00 seconds, an arc length of 111.13 feet; thence North tangent to said last described curve a distance of 304.03 feet and there terminating. Together with a strip of land 60.00 feet in width the centerline of which is described as follows: Beginning at the above reference point "A"; thence southerly along a tangential curve concave to the west having a radius of 569.68 feet, a central angle of 15 degrees 00 minutes 00 seconds, a chord bearing of South 07 degrees 30 minutes 00 seconds West, an arc length of 149.14 feet; thence along a reverse curve concave to the east having a radius of 491.09 feet, a central angle of 15 degrees 00 minutes 00 seconds, an arc length of 128.57 feet; thence South tangent to said last described curve a distance of 466.51 feet more or less to the centerline of County State Aid Road No. 12, and there terminating. and WHEREAS, The City is entering into a Development Contract with the Developer to facilitate the extension of the sewer and water utilities to this site. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: I. The recitals set forth above are incorporated herein. 2. That the City Manager and Mayor are hereby authorized to execute the Development Agreement. PASSED AND ADOPTED THIS 19TH DAY OF MAY. 2008. YES NO Haueen Hedbere Erickson LeMair Millar Haueen Hedbere Erickson LeMair Millar Frank Boyles, City Manager Print Preview Page 1 of 1 Performance Commercial Project s;m ,));;');, 6125 . 6055 :i)~) 1';?~~1 167~J 1'1:;'11 \..- 16731 ~ \, tfl?t)~ t67'65 , 16~)1 ill) w (fl, cr: 1] -" <t: ~ l- V) ::J o ~ ~ ~'n.1 tl))) 5?~j UJ (IJ :> ;/ o c. !,l :, 11'11",1 lt031 " "prOject Site e 1))1(1 " n 16inJ'T 1M)) -lfr,:".)IJ~ , elf ~.. L. "x4:al ~ 1(;~))" I) 1,j>~.J) 17'J7J C',tj~ Dil. lj>iV I:Ij> Ij>DSfO: ,,;03 ~-- ~t') 59i)) :.il32 :yjJL 170 5T E ~ I:-1Q "'125 (~. Gtj>1:1:/r 'i~ SI: ~ r-.... Disclaimer: This information is to be used for reference purposes only. Scott County does not guarantee accuracy of the material contained herein and is not responsible for misuse or misinterpretation. Surveyor information is updated daily and the data for this application is updated weekly. For current information contact the Scott County Surveyors Office. The preceding disclaimer is provided pursuant to Minnesota Statutes ~466.03, Subd. 21 (2000), and the user of this map acknowledges that the County shall not be liable for any damages, and expressly waives all claims, and agrees to defend, indemnify, and hold harmless the County from any and all claims brought by User, its employees or agents, or third parties which arise out of the user's access or use of data provided. Map Scale 1 inch = 358 feet http://gis.co.scott.mn.us/ScottGIS/printPreview .aspx ?PrintOptData=Performance Commercial Pro... 5/12/2008 DEVELOPMENT CONTRACT CJF HOLDINGS LLC PROJECT #EP06-191 This DEVELOPMENT CONTRACT is entered into this 19th day of May, 2008, by and between the CITY OF PRIOR LAKE, a Minnesota municipal corporation ("City"), and ClF Holdings LLC, a Minnesota limited liability corporation (the "Developer"). Based on the mutual promises and covenants set forth herein, the sufficiency of which is not disputed, the City and the Developer (collectively "Parties") agree as follows: 1. Rl}'.nTlEST FOR SITE PIAN APPROVAL,. The Developer has asked the City to approve a Site Plan for a commercial building, including the extension of sewer and water utilities (referred to in this Development Contract as the "Site Plan"). The land is legally described as shown on attached Exhibit A which is incorporated herein as if fully set forth. 2. CONDITIONS OF SITE PIAN APPROVAL. The City hereby approves the Site Plan on condition that the Developer enter into this Development Contract, furnish the Security required by it, and record the Development Contract with the County Recorder or Registrar of Titles within 60 days after the City Council approves the Development Contract. 3. RIGHT TO PROCEED. The Developer may not construct sewer lines, water lines, streets, utilities, public or private improvements, or any buildings until all the following conditions have been satisfied: 1) this Development Contract has been fully executed by both parties, 2) the necessary security, development fees and insurance have been received by the City, 3) a building permit has been approved, and 4) the City Engineer or Designee has issued a letter that all conditions have been satisfied and that the Developer may proceed. 4. pEVEI.OPME}/T PlANS. The Site Plan shall be developed in accordance with the Plans identified below. The Plans shall be approved by the City Engineer prior to consideration of the Final Site Plan and Developer's Contract by the City Council. The plans shall not be attached to this Development Contract, but are incorporated by reference and made a part of this Development Contract as if fully set forth herein. If the plans vary from the written terms of this Development Contract, the more specific or stringent controls shall apply. The Plans are: Plan A -- Final Site Plan Dated 9/7/07 (Prepared by David Linner Architects) Plan B -- Tree Preservation and Replacement Plans Dated 8/30/07 (Prepared by Stonebrook Engineering) Plan C -- Landscaping Plan Dated 9/7/07 (Prepared by Landscape Architecture, Inc.) Plan D -- One set of Plans and Specifications for Developer Installed Improvements Dated 9/21/07 (Prepared by Stonebrook Engineering) All plans set forth above are incorporated herein and made part of this Development Contract. 5. PEVELOPER INSTALLED IMPROVEMENTS. The Developer shall install and pay for the following: A. Sanitary Sewer System B. Water System C. Site Grading and Ponding D. Landscaping E. Wetland Buffer Signage The Developer Installed Improvements shall be installed in accordance with the City's Subdivision Ordinance, City standard specifications for utilities and street construction, the City's Public Works Design Manual, and any other applicable City ordinances, all of which are incorporated herein by reference. The Developer shall submit plans and specifications, which have been prepared by a Minnesota registered professional civil engineer to the City for approval by the City Engineer. The Developer shall obtain all necessary permits and approvals from any other agencies having jurisdiction before proceeding with that aspect of the construction as it relates to that permit. The Developer, its contractors and subcontractors, shall follow all instructions received from the City's authorized personnel. The Developer or the Developer's engineer shall schedule a preconstruction meeting with all parties concerned, including the City staff, to review the program for the construction work. In accordance with Minnesota Pipeline Safety law revisions effective January 1, 2006 the Developer will be responsible for installing a tracer wire mechanism for all service lines in public right-of-way. The proposed tracer mechanism shall be approved by the City prior to installation. All costs associated with furnishing and installing the tracers shall be the Developer's responsibility. Before the Security for the completion of utilities is released, iron monuments must be installed in accordance with Minn. Stat. 9505.02. The Developer's surveyor shall submit a written notice to the City certifying that the monuments have been installed. 6. CONSTRll.fZ!1pN OBSERVA TION. The City's authorized personnel shall provide construction observation during the installation of the Developer Installed Improvements in accordance with the Public Works Design Manual. These services by the City shall include: A. Construction observation during installation of required Developer Installed Improvements, which include grading, sanitary sewer, watermain, storm sewer/ponding and street system. B. Documentation of construction work and all testing of Developer Installed Improvements. C. Field document as-built location dimensions for sanitary sewer, watermain and storm sewer facilities. The Developer's Engineer is responsible for data collection and preparation of as- built record plans. 7. DEVEII)PE~PROVIDED CONSTRUCTION SERVICES:.. The Developer shall be responsible for providing all other construction services including, but not limited to: A. Construction surveying B. As-built drawings of grading plans. C. As-built record drawings showing location, dimensions and elevations of all utility improvements, including but not limited to top nut of hydrants, manhole rims, manhole inverts. (Field tie dimensions to sewer and water services shall be provided to the Developer's Engineer, by City staff or City consultants.) As-built record drawings shall follow the requirements set forth in the Public Works Design Manual (PWDM). The as-built record drawings shall be submitted to the City for approval within six (6) months of substantial base pavement course placement. D. Project Testing: The Developer is responsible, at the Developer's sole cost, to provide testing to certify that Developer Installed Improvements were completed in compliance with the approved final plans and specifications. The personnel performing the testing shall be certified by the Minnesota Department of Transportation. The City Engineer has the sole discretion to determine if additional testing is necessary. The cost of additional testing is to be paid by the Developer. 8. TIME OF PERFORMANCE. The Developer shall install all required public improvements by December 31, 2008. If necessary, the Developer and the City shall consult about an extension of time. If an extension is granted, it shall be in writing and conditioned upon updating the Security posted by the Developer to reflect cost increases and the extended completion date. 9. LICENSE.. The Developer hereby grants the City, its agents, employees, officers and contractors a non-revocable license to enter the Site Plan to perform all work and inspections deemed appropriate by the City in conjunction with the development of the Site Plan. 10. EROSION CONTROL. A. Prior to initiating site grading, the erosion control plan, Plan D, and Stormwater Pollution Prevention Plan (SWPPP) shall be implemented by the Developer and inspected and approved by the City. The City may require the Developer, at no cost to the City, to install additional erosion control measures if they are necessary to meet erosion control objectives. All areas disturbed by the excavation and backfilling operations shall be reseeded immediately after the completion of the work in that area. All seeded areas shall be mulched, and disc anchored as necessary for seed retention. The parties recognize that time is of the essence in controlling erosion. If the Developer does not comply with the erosion control plan and schedule or supplementary conditions imposed by the City, the City may take such action as it deems appropriate to control erosion. The City will endeavor to notify the Developer in advance of any proposed action, but failure of the City to do so will not affect the Developer's and City's rights or obligations hereunder. The Developer shall be solely responsible for any costs incurred by the City for erosion control measures. The Developer shall fully reimburse the City for any cost incurred within ten (10) days of the date of the City's invoice. If the Developer does not reimburse the City for any cost the City incurred for such work within ten (10) days, the City may, without further notice to the Developer, draw down the Irrevocable Letter of Credit to pay any costs. No development, utility or street construction will be allowed unless the Site Plan is in full compliance with the erosion control requirements. Due to the time sensitive nature of providing for erosion control, the notice provisions set out in Paragraph 33 shall not apply to notifications to the Developer under this paragraph. B. The Developer shall seed or lay cultured sod in all boulevard areas behind curb within thirty (30) days, or within a timeline established by the City Engineer, of the completion of street related improvements (sod does not need to be installed in areas of buildable lots where silt fence is required behind curbs). C. The Developer shall restore all other areas disturbed by the development grading and construction operations within this time period. D. Boulevard and disturbed area restoration shall be in accordance with the approved Plan D and SWPPP. (No building permits will be issued until the Developer has installed silt-fence behind the curb of all buildable lots). It is expressly understood that once silt fence has been installed it shall be become the builders' responsibility to maintain the silt fence, unless the silt fence is damaged by the Developer's utility contractors. 11. (:LEAN U~. The Developer shall clean dirt and debris from streets that has resulted from any and all construction work by the Developer, homebuilders, contractors and subcontractors, their agents or assigns. Prior to any construction in the Site Plan, the Developer shall identify, in writing, a responsible party and schedule for erosion control, street cleaning, and street sweeping. If the Developer fails to perform the required clean up within 24 hours of receiving instructions and notice from the City, the City, without further notice, will perform the work and charge the associated cost to the Developer. If the Developer does not reimburse the City for any cost the City incurred for such work within ten (10) days of receipt of the invoice, the City may draw down, without further notice, the Irrevocable Letter of Credit to pay any costs incurred by the City. Due to the time sensitive nature of clean up, the notice provisions set out in Paragraph 33 shall not apply to notifications to the Developer under this paragraph. 12. pRADING PLAN. The Site Plan shall be graded in accordance with the approved grading, development and erosion control planes), (Plan D). The plans and work shall conform to the requirements set forth in the City of Prior Lake Public Works Design Manual. 13. PWNEl{SHIP OF DEVELOPER INSTALLED IMPROVF;}1ENTS. Upon completion of the Developer Installed Improvements required by this Development Contract; (I) final written acceptance by the City Engineer and, (2) adoption of a resolution of acceptance by the City Council, the improvements lying within public right-of-way and easements shall become City property, excluding the pond, which is for the Performance Construction site solely. 14. IMPROVEMENTS REQUIRED BEFORE ISSUANCE OF CERTIFICATE OF OCCUPANCY. A temporary or permanent Certificate of Occupancy shall not be issued for any building in the Site Plan until water and sanitary sewer improvements have been installed and said improvements have been inspected and determined by the City to be available for use. 15. f:ITY ADMINISTRA TION. The Developer shall pay a fee for City administration. City administration will include all activities necessary to implement this Developer's Contract. These activities include, but are not limited to, preparation of the Development Contract, consultation with Developer and its Engineer on the status of or problems regarding the development of the Site Plan, project monitoring during the warranty period, processing of requests for reduction in security, and any consulting or legal fees incurred by the City. Fees for this service shall be four percent (4%) of the estimated construction cost as detailed in Exhibit D, less sewer extension costs to Industrial Circle as detailed in paragraph 29, assuming normal construction and project scheduling. Extraordinary costs incurred by the City over and above the four percent (4%) Administration fee shall be billed to the Developer. Extraordinary costs are defined as costs resulting from change orders applied to the project and costs incurred as a result of unknown conditions at the time of design, project delays, or costs incurred in enforcing the terms of this Development Contract. 16. CITY CONS'[RllCTION .f)BSERVA TION. Construction observation shall include, but is not limited to, part or full-time inspection of proposed grading, public utilities and street construction and City consultant expenses. The Developer shall deposit an amount equal to five percent (5%) of the estimated construction cost, less sewer extension costs to Industrial Circle as detailed in paragraph 29, for construction observation performed by the City's authorized personnel. This amount shall be maintained by the City in escrow until final acceptance of all Developer Installed Improvements by the City. Any balance remaining in the escrow account will be returned to the Developer at that time. Extraordinary costs incurred by the City over and above the five percent (5%) Construction Observation fee shall be billed to the Developer. Extraordinary costs are defined as costs resulting from change orders applied to the project, project delays or costs incurred as a result of unknown conditions at the time of design. 17. T/lUNK ,r;;;TORM WATER ACREAGE CHARGE. A trunk stormwater acreage charge of $9,768.00 shall be paid by the Developer at the time of the building permit. The amount will be calculated as follows: 1.69 acres at $5,780.00 per acre. This calculation was determined by the Trunk Storm Water Fee Study adopted by City Council Resolution #05-18 on January 18,2005. 18. TRUNK WATER ACReAGE CHARGE. A trunk water acreage charge of $9,295.00 shall be paid by the Developer at the time of the building permit. The amount will be calculated as follows: 1.69 acres at $5,500.00 per acre. This charge was determined by the Trunk Water System Fee Study adopted by the City Council Resolution #05-07 on January 3,2005. 19. TRUNK SAl/ITARY SEWER AC8..EAGE CHARGE. A trunk sanitary sewer trunk area charge of $5,138.00 shall be paid by the Developer at the time of the building permit. The amount will be calculated as follows: 1.69 acres at $3,040.00 per acre. This charge was determined by the Trunk Sanitary Sewer Fee Study adopted by City Council Resolution on #05-18 on January 18,2005. 20. ~ANITARY SEWER AND WATER CONNECTION CHARGE.. The Developer shall pay a sanitary sewer and water connection charge of $50,000 for connection to the sanitary sewer and water systems. The amount was calculated as part of the City feasibility study approved May 7, 2007 as the cost per unit to provide sewer and water to the Industrial Park. This amount shall be adjusted by the 4% City Administration and 5% Construction Observation Cost ($16,180.00). 21. !,ARK AND TRAIL DEDICATION. A Park and Trail Dedication Fee of $10,816.00 shall be paid by the Developer at the time of the building permit. The amount will be calculated as follows: 1.69 acres at $6,400.00 per acre. This calculation was determined by the Park Fee Study adopted by City Council Resolution #05-18 on January 18, 2005. 22. lANDSCAPING. Landscaping for this Site Plan shall comply with Plan C. The cost of the landscaping requirements shall be provided by the Developer, subject to approval by the City. Subject to approved Plan C, the Developer shall provide a financial guarantee based on an amount equal to 125% of the estimated cost, as set out in Plan C, to furnish and plant the required landscaping and irrigation system. The City shall maintain the Security for at least one (1) year after the date the last replacement tree has been planted. At the end of such year, or such longer period as the City determines to be reasonable, the portion of the Security equal to 125% of the estimated cost of the replacement trees, which are alive and healthy may be released. Any portion of the Security not entitled to be released shall be maintained and shall secure the Developer's obligation to remove and replant replacement trees, which are not alive or are unhealthy, and to plant missing trees. Upon completion of the replanting or planting of these trees, the Security shall be maintained for at least one (1) year after the date of the replanting or planting of these trees. If, at the end of this period, all of the required trees are alive and healthy, the entire Security may be released. 23. TREE PRESERVATION AND REPlACEMENT. Subject to approved Plan B, and to the provisions of Section 1107.2100 of the City Zoning Ordinance, the Developer shall furnish and plant the required replacement trees as shown on Plan B. In addition, this Development Contract requires the Developer to pay $25,600.00 for required replacement caliper inches that cannot be planted on the site. The amount was calculated as follows: 256 caliper inches at $100.00 per caliper inch. 24. 8EClJRITy". To guarantee compliance with the terms of this Development Contract, payment of the costs of all Developer Installed Improvements, and construction of all Developer Installed Improvements, the Developer shall furnish the City with an Irrevocable Letter of Credit in an amount equal to 125% of the estimated Developer Improvement Costs. The Irrevocable Letter of Credit ("Security") shall be in the form attached hereto as Exhibit B, from a bank for $447,406.00. The amount of the Security was calculated as follows: DEVELOPER INSTALLED IMPROVEMENTS COSTS: Sanitary SewerlW atermainJErosion Control $ Landscaping $ ESTIMA TED DEVELOPER INSTALLED IMPROVEMENTS SUBTOTAL $ TOTAL FOR IRREVOCABLE LETTER OF CREDIT AMOUNT $ 336,878.00 21,047.00 357,925.00 X 1.25 447,406.00 This breakdown is for historical reference; it is not a restriction on the use of the Security. The bank on which the Irrevocable Letter of Credit is drawn shall be subject to the approval of the City. The bank shall be authorized to do business in the State of Minnesota with a principal branch located within the seven County Twin City Metropolitan area. The Security shall be for a term ending December 31, 2009 unless otherwise approved by the City Engineer. The Irrevocable Letter of Credit shall automatically renew for successive one-year terms unless, at least forty-five (45) days prior to the next annual renewal date (which shall be January 1st of each year), the Bank delivers written notice to the Prior Lake City Manager that it intends to modify the terms of, or cancel, the Irrevocable Letter of Credit. Written notice is effective if sent by certified mail, postage prepaid, and deposited in the U.S. Mail, at least forty-five (45) days prior to the next annual renewal date addressed as follows: Prior Lake City Manager, Prior Lake City Hall, 4646 Dakota Street SE, Prior Lake, Minnesota 55372-1714, and is actually received by the City Manager at least forty-five (45) days prior to the renewal date. If the required Developer Installed Improvements are not completed at least thirty (30) days prior to the expiration of the Security, the City may draw on the Irrevocable Letter of Credit. If the Security is drawn down, the proceeds shall be used to cure the default. 25. llEDUCTI01Y... OF SECURITY. Upon receipt of proof satisfactory to the City that the required portions of the Developer installed improvements have been satisfactorily completed and financial obligations to the City have been satisfied, the Security may be reduced by seventy-five percent (75%) of the financial obligations that have been satisfied upon written authorization by the City Engineer. Any requests for reductions in the Security must be made in writing to the City Engineer and must be accompanied by lien waivers from any contractor or subcontractor for the Developer. Twenty- five percent (25%) of the Security shall be retained until all Developer Installed Improvements and other obligations under this Development Contract have been completed, including, but not limited to, all financial obligations to the City, and the receipt of all required as-built street, utility and grading plans by the City. Once the City has accepted the project, as-builts have been completed, all punch list items are completed and warranty bonds submitted, the Irrevocable Letter of Credit may be reduced to 5%. Upon completion of the warranty period the 5% Irrevocable Letter of Credit may be released. In no event shall the five percent (5%) Security be released until the Developer provides the City Engineer with a certificate from the Developer's registered land surveyor stating that all irons have been set following site grading and utility and street construction. 26. CITY DRVELOPMENT FEES. The Developer shall also furnish the City with a cash fee of $75,600.00 for City Development Fees. The amount of the cash fee was calculated as follows: CITY DEVELOPMENT FEES: City Administration Fee (4%)* $ 7,191.00 City Construction Observation Cost (5%)* $ 8,989.00 Sewer & Water Connection Charge** $ 33,820.00 Tree Replacement $ 25.600.00 TOTAL CITY DEVELOPMENT FEES $ 75,600.00 *Based on construction cost less cost of extension of sanitary sewer to Industrial Circle. **Sewer and Water Connection Charge less a credit on City Administration and City Construction Observation Cost 27. WARRANTY. The Developer warrants all Developer Installed Improvements required to be constructed by it pursuant to this Development Contract against poor material and faulty workmanship. The Developer shall post warranty bonds in the amount of twenty-five (25%) of the improvements as security. The warranty period for streets is one (I) year. The warranty period for underground utilities is one (I) year. The warranty period on Developer Installed Improvements shall commence on the date the City Council adopts a resolution accepting the improvements. All punch list items must be completed and "as-built" drawings received prior to the commencement of the warranty period. The retained Security may be used by the City to pay for warranty work. The City standard specifications for utilities and street construction identify the procedures for final acceptance of streets and utilities. These standards are set out in the Public Works Design Manual. 28. OVEIlS1Z1Nf;. A. The City shall reimburse the Developer $175,950.00 for the extension of sanitary sewer to Industrial Circle ($125,410.00) and over-depth for the sanitary sewer ($31,688.00), This amount is calculated as the construction cost of the utilities plus 12% ($18,852.00) of the construction cost for engineering and construction staking. B. The City shall reimburse the Developer a total of $201,354.00 as connection fees are collected from other Industrial Park properties for the extension of sewer and water from Industrial Circle to Welcome A venue. This amount is calculated as the construction cost of the utilities plus 12% of the construction cost for engineering and construction staking. This construction cost does not include the Developer's site utility costs. C. Upon completion of construction, a Contract amendment dictating final oversizing disbursement shall be presented to the City Council for approval. If oversizing costs exceed those shown in this Section (29), the Developer shall be reimbursed those additional costs less engineering and construction staking. If oversizing costs are less than shown in this Section (29), the Developer shall reimburse the City the difference, less engineering and construction staking. The Developer must submit construction payment vouchers to the City as payments to the Contractor are made. 29. CLAIMS. A. City Authorized to Commence Interpleader Action. In the event that the City receives claims from labor, materialmen, or others that work required by this Development Contract has been performed, the sums due them have not been paid, and the laborers, materialmen, or others are seeking payment from the City, the Developer hereby authorizes the City to commence an Interpleader action pursuant to the Minnesota Rules of Civil Procedure for the District Courts, to draw upon the Irrevocable Letter of Credit Security in an amount up to one-hundred twenty-five percent (125%) of the claim(s) and deposit the funds in compliance with the Rule, and upon such deposit, the Developer shall release, discharge, and dismiss the City from any further proceedings as it pertains to the Irrevocable Letters of Credit deposited with the District Court, except that the Court shall retain jurisdiction to determine attorneys' fees pursuant to this Development Contract. B. Prompt Payment to Subcontractors Required. The Developer shall pay any subcontractor within ten (10) days of the Developer's receipt of payment by the City for undisputed services provided by the subcontractor. If the Developer fails within that time to pay the subcontractor any undisputed amount for which the Developer has received payment by the City, the Developer shall pay interest to the subcontractor on the unpaid amount at the rate of one and one-half percent (1.5%) per month or any part of a month. The minimum monthly interest penalty payment for an unpaid balance of one-hundred dollars ($100) or more is ten dollars ($10). For an unpaid balance of less than one-hundred dollars ($100), the Developer shall pay the actual interest penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from the Developer shall be awarded its costs and disbursement, including attorney's fees incurred in bringing the action, from the Irrevocable Letter of Credit or other security provided by the Developer to the City. (See Minn. Stat. ~471.425, Subd. 4a.) 30. /lE.(;)PONSIBILITY FOR COS.T~~. A. The Developer shall reimburse the City for costs incurred in the enforcement of this Development Contract, including engineering and attorneys' fees. B. Except as provided in Paragraphs 10 and 11 of this Development Contract, the Developer shall pay in full all bills submitted to it by the City for obligations incurred under this Development Contract within thirty (30) days after receipt. If the bills are not paid on time, the City may issue a stop work order until the bills are paid in full. 31. DEVELOPElfS DEFAULT. A. Definition. In the context of this Development Contract, "Event of Default" shall include, but not be limited to, anyone or more of the following events: (1) failure by the Developer to pay, in a timely manner, all real estate property taxes and assessments with respect to the development property; (2) failure by the Developer to construct the Developer Installed Improvements pursuant to the terms, conditions and limitations of this Development Contract; (3) failure by the Developer to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed under this Development Contract; (4) transfer of any interest in the Site Plan without prior written approval by the City Council. (For the purpose of this paragraph 32) The sale of a lot, except an outlot, to a builder is not an event of default); (5) failure to correct any warranty deficiencies; (6) failure by the Developer to reimburse the City for any costs incurred by the City in connection with this Development Contract; (7) failure by the Developer to renew the Irrevocable Letter of Credit at least forty-five (45) days prior to its expiration date; (8) receipt by the City from the Developer's insurer of a notice of pending termination of insurance; (9) a breach of any material provision of this Development Contract. With respect to this paragraph, "material provision" shall be construed broadly to offer the City the fullest protection and recourse possible. B. Event of Default - Remedies. Whenever an Event of Default occurs, the City, after providing the Developer with ten (10) days written notice in accordance with the terms of Paragraph 33 of this Development Contract, may take anyone or more of the following actions: 1. The City may suspend its performance under this Development Contract. 2. The City may cancel or suspend this Development Contract. 3. The City may draw upon or bring action upon any or all of the Securities provided to the City pursuant to any of the terms of this Development Contract. 4. The City may take whatever action, including legal or administrative action, which may be necessary or desirable to the City to collect any payments due under this Development Contract or to enforce performance and/or observance of any obligation, agreement or covenant of development under this Development Contract. 5. The City may suspend issuance of building permits and/or certificates of occupancy on any of the lots in this Site Plan. 6. The City may draw upon the Irrevocable Letter of Credit if the City receives notice that the bank elects not to renew the Irrevocable Letter of Credit. 7. The City may, at its option, install or complete the Developer Installed Improvements using the Irrevocable Letter of Credit to pay for the related costs. 8. Any fees incurred by the City associated with enforcing any of the provisions set out in sections 1-7 above shall be the sole responsibility of the Developer. C. Election of Remedies. None of the actions set forth in this Section are exclusive or otherwise limit the City in any manner. 32. NOTICES. Whenever any paragraph in this Development Contract, with the exception of paragraphs 10 and 11, requires Notice to be provided to the Developer, the notice shall include the following: (1) the nature of the breach of the term or condition that requires compliance by the Developer, or the Event of Default that has occurred; (2) what the Developer must do to cure the breach or remedy the Event of Default; and (3) the time the Developer has to cure the breach or remedy the Event of Default. Required Notices to the Developer shall be in writing, and shall be either hand delivered to the Developer, its employees or agents, or mailed to the Developer by certified mail at the following address: CJF Investments, 16801 Industrial Circle SE, Prior Lake, MN 55372. Notices to the City shall be in writing and shall be either hand delivered to the City Manager, or mailed to the City by certified mail in care of the City Manager at the following address: City of Prior Lake, 4646 Dakota Street SE, Prior Lake, Minnesota 55372-1714. Concurrent with providing Notice to the City, Notice(s) shall be served upon the City Attorney Suesan Lea Pace, Esq. at Halleland Lewis Nilan & Johnson, US Bank Plaza, 220 South Sixth Street, Suite 600, Minneapolis, Minnesota, 55402-4501. 33. INDEMNIFICATION... Developer shall indemnify, defend, and hold the City, its Council, agents, employees, attorneys and representatives harmless against and in respect of any and all claims, demands, actions, suits, proceedings, liens, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including interest, penalties, and attorneys' fees, that the City incurs or suffers, which arise out of, result from or relate to this Development Contract. The responsibility to indemnify and hold the City harmless from claims arising out of or resulting from the actions or inactions of the City, its Council, agents, employees, attorneys and representatives does not extend to any willful or intentional misconduct on the part of any of these individuals. 34. fVO THIRD PARTY RECOURSE. The City and Developer agree that third parties shall have no recourse against the City under this Development Contract. The Developer agrees that any party allegedly injured or aggrieved as a result of the City's approval of the Site Plan shall seek recourse against the Developer or the Developer's agents. In all such matters, including court actions, the Developer agrees that the indemnification and hold harmless provisions set out in Paragraph 34 shall apply to said actions. 35. !NSURANCE REQUIREYENTS. Developer, at its sole cost and expense, shall take out and maintain or cause to be taken out and maintained, until the expiration of the warranty period(s) on the Developer Installed Improvements, public liability and property damage insurance covering personal injury, including death, and claims for property damage which may arise out of Developer's work or the work of its subcontractors or by one directly or indirectly employed by any of them. Limits for bodily injury and death shall be not less than $1,000,000 for one person and $2,000,000 for each occurrence; limits for property damage shall be not less than $500,000 for each occurrence; or a combination single limit policy of $1,000,000 or more. The City shall be named as an additional insured on the policy, and the Developer shall file with the City a certificate evidencing coverage prior to the City signing the Site Plan. The certificate shall provide that the City must be given thirty (30) days advance written notice of the cancellation of the insurance. The Certificate shall be in the form attached hereto as Exhibit C. All insurance certificates shall have expiration dates falling on June 30th or December 31 st of each year. Each insurance certificate shall have the project name and City project number clearly shown. 36. RECORDING DEVELOPMENT CONTRACT. This Development Contract shall run with the land. The Developer, at its sole cost and expense, shall record this Development Contract against the title to the property within sixty (60) days of the City Council's approval of the Development Contract. The Developer shall provide the City with a recorded copy of the Development Contract. The Developer covenants with the City, its successors and assigns, that the Developer is well seized in fee title of the property being final Site Planted and/or has obtained consents to this Development Contract, in the form attached hereto, from all parties who have an interest in the property; that there are no unrecorded interests in the property being final Site Planted; and that the Developer indemnifies and holds the City harmless for any breach of the foregoing covenants. 37. SPECIAL PR.0 V1SIONS. The following special provisions shall apply to Site Plan development: A. Compliance with all of the conditions listed in the Resolution approving the final Site Plan. B. The Developer is required to submit the final Site Plan in electronic format. The electronic format shall be compatible with the City's current software. In addition upon completion of the project the Developer shall provide the City with as-built utility plans in electronic format compatible with the City's current software and with layers, colors and line-types formatted in accordance with City standards. Additionally three (3) full size (22x34 inch) paper copies and one (1) reduced (11 x 17 inch) copy shall be certified and submitted to the City. C. The Developer hereby waives any claim against the City for removal of signs placed in the right-of-way in violation of the City Zoning Ordinance and State Statutes. The City shall not be responsible for any damage to, or loss of, signs removed pursuant to this provision. 38. MISCELLANEOUS. A. Compliance With Other Laws. The Developer represents to the City that the Site Plan complies with all county, metropolitan, state, and federal laws and regulations, including but not limited to: subdivision ordinances, zoning ordinances, and environmental regulations. If the City determines that the Site Plan does not comply, the City may, at its option, refuse to allow construction or development work in the Site Plan until the Developer does comply. Upon the City's demand, the Developer shall cease work until there is compliance. B. Severability. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this Development Contract is for any reason held invalid, such decision shall not affect the validity of the remaining portion of this Development Contract. C. Amendments. There shall be no amendments to this Development Contract unless in writing, signed by the parties and approved by resolution of the City Council. The City's failure to promptly take legal action to enforce this Development Contract shall not be a waiver or release. D. Assignment. The Developer may not assign this Development Contract without the prior written approval of the City Council which approval shall not unreasonably be withheld. The Developer's obligation hereunder shall continue in full force and effect even if the Developer sells one or more lots, the entire Site Plan, or any part of it. E. Interpretation. This Development Contract shall be interpreted in accordance with and governed by the laws of the State of Minnesota. The words herein and hereof and words of similar import, without reference to any particular section or subdivision, refer to this Development Contract as a whole rather than to any particular section or subdivision hereof. Titles in this Development Contract are inserted for convenience of reference only and shall be disregarded in constructing or interpreting any of its provisions. F. Jurisdiction. This Development Contract shall be governed by the laws of the State of Minnesota. CITY OF PRIOR LAKE (SEAL) By: Jack G. Haugen, Mayor By: Frank Boyles, City Manager DEVELOPER: By: Its: By: Its: ST ATE OF MINNESOTA) ( ss. COUNTY OF SCOTT) The foregoing instrument was acknowledged before me this day of . 20_, by Jack G. Haugen, Mayor, and by Frank Boyles, City Manager, of the City of Prior Lake, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. NOTARY PUBLIC STATE OF MINNESOTA ) ( ss. COUNTY OF ) The foregoing instrument was acknowledged before me this 20_, by day of NOTARY PUBLIC DRAFfED BY: City of Prior Lake 4646 Dakota Street SE Prior Lake, Minnesota 55372 FEE OWNER CONSENT TO DEVELOPMENT CONTRACT , fee owners of all or part of the subject property, the development of which is governed by the foregoing Development Contract, affirm and consent to the provisions thereof and agree to be bound by the provisions as the same may apply to that portion of the subject property owned by them. Dated this day of .20 ST ATE OF MINNESOTA) ( ss. COUNTY OF ) 20 The foregoing instrument was acknowledged before me this , by day of NOTARY PUBLIC DRAFTED BY: City of Prior Lake 4646 Dakota Street SE Prior Lake, Minnesota 55372 MORTGAGEE CONSENT TO DEVELOPMENT CONTRACT , which holds a mortgage on the subject property, the development of which is governed by the foregoing Development Contract, agrees that the Development Contract shall remain in full force and effect even if it forecloses on its mortgage. Dated this day of ,20 ST ATE OF MINNESOTA) ( ss. COUNTY OF ) 20 The foregoing instrument was acknowledged before me this by day of NOTARY PUBLIC DRAFfED BY: City of Prior Lake 4646 Dakota Street SE Prior Lake, Minnesota 55372 CONTRACT PURCHASER CONSENT TO DEVELOPMENT CONTRACT , which/who has a contract purchaser's interest in all or part of the subject property, the development of which is governed by the foregoing Development Contract, hereby affirms and consents to the provisions thereof and agrees to be bound by the provisions as the same may apply to that portion of the subject property in which there is a contract purchaser's interest. Dated this day of .20 ST ATE OF MINNESOTA ) ( ss. COUNTY OF ) 20 The foregoing instrument was acknowledged before me this by day of NOTARY PUBLIC DRAFTED BY: City of Prior Lake 4646 Dakota Street SE Prior Lake, Minnesota 55372 EXHIBIT" A" TO DEVELOPMENT CONTRACT Legal Description of Property Being Final Site Planted and Copy of Final Site Plan, Including Title Sheet: That part of the East Three-Fourths of the Southeast Quarter of Section 1, Township 114, Range 22, Scott County, Minnesota described as follows: Commencing at the southeast comer of said Section 1; thence on an assumed bearing of North 01 degrees 21 minutes 00 seconds West along the east line of said Section 1, a distance of 1251.72 feet; thence South 88 degrees 39 minutes 00 seconds West a distance of 1875.73 feet; thence South 86 degrees 11 minutes 30 seconds West a distance of 84.66 feet to the east line of the west 30.00 feet of said East Three-Fourths of the Southeast Quarter; thence North 86 degrees 11 minutes 30 seconds East a distance of 514.66 feet; thence bearing South a distance of 704.31 feet to the centerline of County State Aid Highway No. 12; thence South 63 degrees 37 minutes 56 seconds East along said centerline a distance of 73.66 feet; thence bearing North a distance of 412.00 feet; thence bearing East a distance of 670.15 feet to the point of beginning of the land to be described; thence bearing North a distance of 224.00 feet; thence bearing East a distance of 273.86 feet; thence bearing South a distance of 604.00 feet; thence bearing West a distance of 280.00 feet; thence bearing North a distance of 105.45 feet; thence along a tangential curve, concave to the east, having a radius of 491.08 feet, a central angle of 15 degrees 00 minutes 00 seconds, an arc length of 128.57 feet; thence along a reverse curve concave to the west, having a radius of 569.68 feet, a central angle of 15 degrees 00 minutes 00 seconds, an arc length of 149.15 feet more or less to the intersection with a line bearing East from the point of beginning; thence bearing West a distance of 30.00 feet to the point of beginning. EXCEPTING THEREFROM the following described property: That part of the East Three-Fourths of the Southeast Quarter of Section 1, Township 114, Range 22, Scott County, Minnesota, described as follows: Commencing at the southeast comer of said Section 1; thence on an assumed bearing of North 01 degrees 21 minutes 00 seconds West along the east line of said Section 1, a distance of 1251.72 feet; thence South 88 degrees 39 minutes 00 seconds West a distance of 1875.73 feet; thence South 86 degrees 11 minutes 30 seconds West a distance of 84.66 feet to the east line of the west 30.00 feet of said East Three-Fourths of the Southeast Quarter; thence North 86 degrees 11 minutes 30 seconds East a distance of 514.66 feet; thence bearing South a distance of 704.31 feet to the centerline of County State Aid Highway No. 12; thence South 63 degrees 37 minutes 56 seconds East along said centerline a distance of 73.66 feet; thence bearing North a distance of 412.00 feet; thence bearing East a distance of 944.00 feet; thence south a distance of 320.00 feet to the point of beginning of the land to be described; thence continuing South a distance of 60.00 feet; thence West a distance of 250.00 feet; thence North a distance of 60.00 feet; thence East a distance of 250.00 feet to the point of beginning. Together with a nonexclusive easement for roadway over and across that part of the East Three-Fourths of the Southeast Quarter of Section 1, Township 114, Range 22, Scott County, Minnesota, described as follows: A strip of land 60.00 feet in width the centerline of which is described as follows: Commencing at the southeast comer of said Section 1; thence on an assumed bearing of North 01 degrees 21 minutes 00 seconds West along the east line of said Section 1, a distance of 1251.72 feet; thence South 88 degrees 39 minutes 00 seconds West a distance of 1875.73 feet; thence South 86 degrees 11 minutes 30 seconds West a distance of 84.66 feet to the east line of the west 30.00 feet of said East Three-Fourths of the Southeast Quarter; thence North 86 degrees 11 minutes 30 seconds East a distance of 514.66 feet; thence South a distance of 704.31 feet to the centerline of County State Aid Highway No. 12; thence South 63 degrees 37 minutes 56 seconds East along said centerline a distance of 73.66 feet; thence North a distance of 412.00 feet; thence East a distance of 700.15 feet to a point hereinafter referred to as point "A", the point of beginning of the line to be described; thence North a distance of 325.00 feet; thence along a tangential curve concave to the west having a radius of 455.74 feet, a central angle of 15 degrees 00 minutes 00 seconds, an arc length of 119.31 feet; thence along a reverse curve concave to the east having a radius of 424.68 feet, a central angle of 15 degrees 00 minutes 00 seconds, an arc length of 111.13 feet; thence North tangent to said last described curve a distance of 304.03 feet and there terminating. Together with a strip of land 60.00 feet in width the centerline of which is described as follows: Beginning at the above reference point "A"; thence southerly along a tangential curve concave to the west having a radius of 569.68 feet, a central angle of 15 degrees 00 minutes 00 seconds, a chord bearing of South 07 degrees 30 minutes 00 seconds West, an arc length of 149.14 feet; thence along a reverse curve concave to the east having a radius of 491.09 feet, a central angle of 15 degrees 00 minutes 00 seconds, an arc length of 128.57 feet; thence South tangent to said last described curve a distance of 466.51 feet more or less to the centerline of County State Aid Road No. 12, and there terminating. EXHIBIT "B" SAMPLE IRREVOCABLE LETTER OF CREDIT No. Date: TO: City of Prior Lake 4646 Dakota Street Prior Lake, Minnesota 55372-1715 Dear Sir or Madam: We hereby issue, for the account of Letter of Credit in the amount of $ undersigned bank. (Name of Develooer) and in your favor, our Irrevocable , available to you by your draft drawn on sight on the The draft must: a) Bear the clause, "Drawn under Letter of Credit No. (Name of Bank) "; , dated , 20_, of b) Be signed by the Mayor or City Manager of the City of Prior Lake. c) Be presented for payment at (Address of Bank) . on or before 4:00 p.m. on December 31, 20_ This Letter of Credit shall automatically renew for successive one-year terms unless, at least forty-five (45) days prior to the next annual renewal date (which shall be November 30 of each year), the Bank delivers written notice to the Prior Lake City Manager that it intends to modify the terms of, or cancel, this Letter of Credit. Written notice is effective if sent by certified mail, postage prepaid, and deposited in the U.S. Mail, at least forty- five (45) days prior to the next annual renewal date addressed as follows: Prior Lake City Manager, Prior Lake City Hall, 4646 Dakota Street, Prior Lake, Minnesota 55372-1714, and is actually received by the City Manager at least forty-five (45) days prior to the renewal date. This Letter of Credit sets forth in full our understanding which shall not in any way be modified, amended, amplified, or limited by reference to any document, instrument, or agreement, whether or not referred to herein. This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be made under this Letter of Credit. This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce Publication No. 400. We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored upon presentation. BY: Its EXHIBIT "C" SAMPLE CERTIFICATE OF INSURANCE PROJECT: CERTIFICA TE HOLDER: City of Prior Lake 4646 Dakota Street Prior Lake, Minnesota 55372-1714 INSURED: ADDITIONAL INSURED: City of Prior Lake AGENT: WORKERS' COMPENSATION: Policy No. Effective Date: Expiration Date: Insurance Company: COVERAGE - Workers' Compensation, Statutory. GENERAL LIABILITY: Policy No. Effective Date: Expiration Date: Insurance Company: ( ) Claims Made ( ) Occurrence LIMITS: [Minimum] Bodily Injury and Death: $1,000,000 for one person $2,000,000 for each occurrence Property Damage: $500,000 for each occurrence -OR- Combination Single Limit Policy $1,000,000 or more COVERAGE PROVIDED: Operations of Contractor: YES Operations of Sub-Contractor (Contingent): YES Does Personal Injury Include Claims Related to Employment? YES Completed OperationslProducts: YES Contractual Liability (Broad Form): YES Governmental Immunity is Waived: YES Property Damage Liability Includes: Damage Due to Blasting YES Damage Due to Collapse YES Damage Due to Underground Facilities YES Broad Form Property Damage YES AUTOMOBILE LIABILITY: Policy No. Effective Date: Expiration Date: Insurance Company: (X) Any Auto LIMITS: [Minimum] Bodily Injury: $1,000,000 each person $2,000,000 each occurrence Property Damage: $500,000 each occurrence -OR- Combined Single Limit Policy: $1,000,000 each occurrence ARE ANY DEDUCTIBLES APPLICABLE TO BODILY INJURY OR PROPERTY DAMAGE ON ANY OF THE ABOVE COVERAGES: If so, list: Amount: $ [Not to exceed $1,000.00] SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL MAIL THIRTY (30) DAYS WRITTEN NOTICE TO THE PARTIES TO WHOM THIS CERTIFICATE IS ISSUED. Dated at On BY: Authorized Insurance Representative =x- 3 Job location City County Slate INDUSTRIAL CIRCLE PRIOR LAKE WELCOME AVENUE PRIOR LAKE SCOTT MN - ) BIdD.. Bidder 10 11 12 MOBILIZATION CLEAR & GRUB BITUMINOUS SAWCUT REMOVE BITUMINOUS SALVAGE CRUSHED ROCK (0.7'-0.85') SALV/REINSTAU CHAIN LINK FENCE NEW POSTS SALV/REPLo\CE STORM SEWER SALV/REPLACE 15- eMP RELOCATE 10'x12' SHED SOIL BORINGS TEMPORARY DRIVEWAY INDUSTRIAL TO WELCOME MOVE XCEl TRANSFORMER REGULAR SILT FENCE INLET PROTECTION EROSION BLANKET HillSIDE CAT 3 SeeD MIX 260 @ 100 _lAC TYPE 1 MULCH @ 2 TONS/AC DISK ANCHORING FERTILIZER 24-12-24 (NPK) @ 300 ii/AC SUBGRADE PREPARATION 3" CLASS 5 100% CR (CITY PROPERTY) 3" CLASS 5 100% CRUSHED (STREET & PARKING) CORE DRILL SANtT ARY MH CONSTRUCT a" OUTSIDE DROP ON EXISTING MH H/2" FOUNDATION ROCK 8" OUTSIDE DROP SANITARY MANHOLE (10) R1733 CASTING WflNFISH1ElD 8M DIP, Cl S2 SEWER 24-30' DEPTH 8M PVC, SOR 35 10-12' DEPTH e" PVC, SoR 26 23-25' OEPTH 8M X 6" MJ 01 WYE Wf45 MJ BENDS ew x 6" PVC SDR 26 WYE W/45 BENDS 6M DIP, Cl52 SERVICE RISER 6" PVC SoR 26 SERVICE RISER 6" PVC SDR 26 SERVICE WfTRACING TERMINALS TELEVISE SANITARY SEWER SEWER MARKER SIGN W/POST REMOVE WATERMAIN REMOVE HYDRANT CUT-IN TO EXISTING S" WATERMAIN 8" DIP, Cl52 WATERMAIN 6" DIP, CL 52 HYDRANT LEAD 6" DIP, CL52 SERVICE lEAD HYDRANT W/6M GATE VALVE & BOX 6" GATE VALVE & BOX SERVICES e" GATE VALVE & BOX WATERMAIN MARKER SIGN W/POST 8M 01 MJ PlUG 6" 01 MJ PLUG (SERVICES) 4M DI MJ PlUG 8M X 6" 01 MJ TEE e" X 8M 01 MJ TEE e" X4" 01 MJ TEE e" 01 MJ LONG SLEEVE 8M 01 MJ 90 BEND B" X 6" 01 MJ REDUCER B" 01 MJ 11.114 BEND 6" Ot MJ 11.114 BEND e" MEGAlUG 6" MEGAlUG 4" MEGALUG 0.47 164 422 3153 3ll 2171 eo8 135 135 405 6082 565 450 3,47 600 16,74 202.66 10 810 34. 916 50 45 243 2075 181 1072 38 220 11 49 33 0.37 0.63 LS 13 14 15 16 17 18 ,. 20 21 22 23 24 25 25 27 26 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 eo 61 62 Pr_ol Ctr1Il\oati.. 017 0,30 ACRE 164,00 422,00 1,84300 000 100 0,00 0.00 1.00 000 0.00 0.00 IF 000 BY 1,310.00 TON '.00 LS 0.00 LS 38.00 LF 1,00 EA 2.00 EA 1.00 EA 100 EA 1.71700 LF 0,00 EA 0.00 SY 88.00 LES 200 TON 0.68 ACRE 264 00 LBS 2,712.00 SY 0.00 TON 450.00 TON 0.00 EA 0.00 LF 20000 TON 0.00 IF 101.61 IF 4.00 EA 362.00 LF 000 LF 705.00 IF 3.00 EA 400 EA 3700 IF 45.00 IF 243.00 LF 1,067.00 IF 3.00 EA O,OOlF 0,00 EA 000 EA 1,012.00 IF 22,00 IF 220.00 IF 4.00 EA 7,00 EA 400 EA 3.00 EA 3.00 EA 7,00 EA 100 EA 1100 EA 2,00 EA 1.00 EA 1.00 EA 100 EA 100 EA 3.00 EA 1.00 EA 49.00 EA 33.00 EA 1.00 EA 454 00 1-00 80800 4700 100 0.47 14100 3,37000 56500 0.00 3.00 3.47 40000 1674 10105 600 448.00 349.00 211.00 100 0,00 13.00 000 000 1,008.00 2.00 18100 100 100 000 16,00 0.00 1.00 0,00 0,00 0.00 0.00 000 0.00 000 0.00 000 000 000 0.00 000 000 0.00 000 0.00 1) Quote Aslumes No Bond 2) Quole Excludes Dewatering allhe dtop manhole __ . If required 3) Chainlink fence to be salvage, temporarily reinatlllled S$ a construction fence and then permanenlly Installed with new posts 4) Bituminous patching aslUmed to be 4M depth through lhe City properly 5) Excludesltaklng 5,000.00 6,250.00 3.50 3.00 3.50 3,000.00 2.000,00 10.00 JOO.OO 1,000.00 500.00 12,000.00 1.55 JOO.OO 1.00 ORAND TOTAL: 100 25.00 1,300.00 0.60 0.75 1259 12,59 400.00 175.00 20.00 175.00 200 00 500.00 67.88 34 00 5400 350.00 7500 30.00 25.00 20.00 175 75.00 10,00 500.00 1,000.00 35.00 25.00 25.00 3,000.00 875.00 1,200,00 75.00 35.00 30.00 2700 200.00 200.00 175 00 125.00 135,00 100.00 115.00 105.00 25.00 15.00 14.00 $5,000.00 $2,937.50 $574.00 $1,266.00 $11,035.50 $3,000.00 $2,000.00 $38000 S300 00 $3,000.00 $500,00 $12,000,00 $3,365.05 S300 00 $808,00 $135,00 $75.00 $1,755.00 $243.00 $4,561.50 $7,113.35 $5,665.50 $1,200.00 $607.25 $12,000.00 $2,929.50 $40,532.00 $5,000 00 $54,982.80 $11,866 00 $49,464,00 $1.400.00 $30000 $1,500,00 $1,125.00 $4,860,00 $3,631.25 537500 $1,81000 $50000 $1,000.00 $37,520.00 $95000 $5,500.00 $15,000,00 $6,125.00 $4,600.00 $225 00 $105.00 $210.00 527.00 $2,200.00 $400.00 $17500 $125.00 $135.00 $10000 $345.00 $105.00 $1,225.00 $495.00 $14.00 SSS6.178.20 $1,266,00 $6,450.50 $000 $2,000.00 SO.OO $0.00 $1,006.00 $000 $000 570370 $300,00 $808,00 $47.00 $2500 $611.00 $64,60 $2.527.50 $7.113.35 $0,00 $1,200.00 $60125 $8,000.00 $2,929.50 $20,210.00 $3,000.00 $30,410,24 $11,866,00 $11,39400 $3SO 00 $000 $39000 $000 $0.00 $1.764.00 5150.00 $1,810,00 $500.00 $1,000,00 $0.00 $400,00 $000 $3,000.00 $000 $0 00 $000 $000 $0.00 $000 $0.00 $0,00 $0.00 $0.00 $0.00 $000 $000 $0.00 $000 $0.00 $0.00 $1,850.00 $3,150.00 $1,062.50 S1,675,00 $574.00 $0.00 $0.00 $4,585.00 $3,00000 $0.00 $3BO 00 S300 00 51,994.00 $500.00 $12,000 00 $2,661.35 $0.00 $000 $BB.00 $50.00 $1,144.00 $158.40 $2,034 ,00 $0.00 $5,665.50 $0.00 $0.00 54,000.00 $0,00 $20,322 00 $2.000.00 $24,572,56 $0.00 $38,070.00 $1,05000 $300.00 $1,110.00 $1,125.00 $4.660 00 $1,867.25 $225.00 $000 $0,00 $0.00 $37,520.00 $550 00 $5,500.00 $12,000.00 $6,125.00 $4,800.00 $225,00 $105,00 $210.00 $2700 $2,200.00 $400.00 $175.00 $125.00 $135.00 $100.00 5345.00 $10500 $1,225.00 $495.00 $14.00 S125.410." 1211,461.06 j Job Location City County State Description =X -II 3 ) INDUSTRIAL CIRCLE PRIOR LAKE WELCOME AVENUE PRIOR LAKE SCOTT MN Sanitary Extra Depth MH 0 to MH A to End (Design as it is now) Description Un. No. SANITARY MANHOLE (4) lr' DIP. CL 52 SEWER 24-30' DEPTH S" PVC, SDR 35 10-12' DEPTH S" PVC. SDR 26 23-25' DEPTH S" X 6" MJ 01 WYE W/45 MJ BENDS 8" X 6" PVC SDR 26 WYE W/45 BENDS 6" DIP, CL 52 SERVICE RISER 8" PVC SDR 26 SERVICE RISER 101.61 0.00 0.00 LF 200.00 $20.322.00 362.08 0.00 0.00 LF 67.88 $24.577.99 0 0.00 0.00 LF 34.00 $0.00 704.55 0.00 0.00 LF 54.00 $38,045.70 0.00 0.00 EA 350.00 $1.05000 0.00 0.00 EA 75.00 $300.00 37 0.00 0.00 LF 30.00 $1.110.00 45 0.00 0.00 LF 25.00 $1.125.00 GRAND TOTAL: 586.530.69 1nd_1 ..a'rkl ~ity wtleom. Unit 01 p~ Ave MeasUre 58.61 0.00 0.00 LF 200.00 $11.722.00 0 0.00 0.00 LF 67.88 $0.00 704.55 0.00 0.00 LF 34.00 $23,954.70 362.08 000 0.00 LF 51.00 $18,486.08 0 0.00 0.00 EA 350.00 $0.00 0.00 0.00 EA 75.00 $525.00 0.00 0.00 LF 30.00 $0.00 0.00 0.00 LF 25.00 $175.00 GRAND TOTAL: 554.842.78 CITY OVER DEPTH COST: $31,687.91 Sanitary Depth MH 0 to MH A to End (What it would have been) SANITARY MANHOLE (4) 8.. DIP, CL 52 SEWER 24-30. DEPTH 8" PVC, SDR 3510-12' DEPTH 8" PVC. SDR 2614.20. DEPTH 8" X 6" MJ 01 WYE W/45 MJ BENDS 8" X 6" PVC SDR 26 WYE W/45 8ENDS 6" DIP. CL 52 SERVICE RISER 6" PVC SDR 26 SERVICE RISER Propoaal CertiflClltion 1) Quote Assumes No Bond 2) Quote Excludes Dewatering at the drop manhole connection, if required. 3) Chainlink fence to be salvage. temporarily reinstalled as a construction fence and then permanently installed with new posts. 4) Bituminous patching assumed to be 4" depth through the City property 5) Excludes slaking. $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $000 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 SO.OO SO.ooj Av.Prioe $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $000 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 SO.OO 50.00j EXHIBIT "E" TO DEVELOPMENT CONTRACT CONDITIONS OF SITE PLAN APPROVAL 1. Payment of all fees prior to release of the Building Permit. 2. The developer provides financial security, acceptable to the City Engineer prior to release of the Building Permit. 3. The Development Contract and all pertinent documents must be filed with Scott County prior to issuance of a Building Permit and no later than 60 days from the date of Development Contract approval. Failure to record the documents by July 19, 2008, will render the final Site Plan null and void.