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Home My WebLink About5G - Habitat for Humanity~p4 PRjO ~ ~ ti 9 4646 Dakota Street S.E. u ~ Prior Lake, MN 55372-1714 '''INNESO~t' CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 8, 2009 AGENDA #: 5 G PREPARED BY: DANETTE M. PARR, COMMUNTIY DEVELOPMENT AND NATURAL RESOURCES DIRECTOR AGENDA ITEM: CONSIDER APPROVAL OF TWO RESOLUTIONS: (1) APPROVING A DEVELOPMENT CONTRACT WITH TWIN CITIES HABITAT FOR HUMANITY, AND (2) AUTHORIZING THE TRANSFER OF PROPERTY TO TWIN CITIES HABITAT FOR HUMANITY. DISCUSSION: Introduction The purpose of this agenda item is for the City Council to enter into a Development Contract with Twin Cities Habitat for Humanity for the relocation of a residential dwelling unit and construction of a future residential home on property located at 3631 - 170th Street, Prior Lake, and to authorize the transfer of the property to Twin Cities Habitat for Humanity under the terms of the Development Contract. Current Circumstances At the April 20, 2009 and June 15, 2009 City Council meetings, the Council was presented with a proposal to partner with Habitat for Humanity to allow for a future residential home on City owned land. At those meetings, Habitat for Humanity and City Staff provided information related to the following: • The appraised value of the City lot ($58,000). • The need to integrate the design of the proposed house into the existing neighborhood. • The possibility of relocating an existing home from 16046 Tahinka Place to the subject site. • The proposed site layout. • Legal avenues for transferring City land to Habitat for Humanity. On July 13, 2009 the Planning Commission considered the proposal and gave the following feedback: • Supported the proposal. • Stated that the City should receive some compensation for the subject parcel. • Felt the proposal was consistent with the 2030 Comprehensive Plan in respect to the following goals and objectives: - Encourage the development of suitable housing in a desirable environment. - Provide opportunities for a variety of affordable hiah auality housing. Maintain choice of and encourage development of quality residential environments. Work with the County Housing and Redevelopment Authority, other agencies, foundations and non-profit agencies to assist in meeting housing needs. www. cityofpriorlake . com ... Phone~~~ 44~s.~$030~r~. Fad 9~~,4~7 ~~4,5 ~ ,, Identify and implement innovative strategies for meeting the needs of entry-level and median-income house buyers. Achieve diverse housing. On August 3, 2009 the City Council considered the proposal from Habitat for Humanity to transfer a vacant residential lot to Habitat for Humanity. At that time, Habitat for Humanity indicated it would pay $22,000 for the parcel. The Council determined that given the current state of the housing market in the seven county metro area, $22,000 was the "highest attainable price" it could expect to realize for the foreseeable future. The Council also found that providing affordable quality housing was consistent with the goals of the City's Comprehensive Plan and 2030 Vision and Strategic Plan. The Council directed Staff to identify the process and prepare the appropriate agreements to facilitate the project. ISSUES: The staff intends to require Habitat for Humanity to enter into a Development Contract with the City to assure the property is used for the purposes stated and that the relocation of the Schrank house is completed. A separate action is required for the transfer of the property should the Council approve the Development Contract. Two actions are required: (1) adopt the attached Resolution entering into a Development Agreement with Twin Cities Habitat for Humanity, and (2) adopt the attached Resolution authorizing the transfer of the property from the City to Twin Cities Habitat for Humanity conditional upon the terms outlined in the Development Agreement. Both the Development Contract and Quit Claim Deed are attached. FINANCIAL As part of the 2010 CR 12 project, the City will be reimbursing the County for IMPACT: the right of way. The 2010 Project has identified full funding for the $100,000 reimbursement. The $22,000 compensation for the parcel will be required to go the Street Oversize Fund. ALTERNATIVES: 1. Approve the Resolution 09-XX entering into a Development Contract with Twin Cities Habitat for Humanity. 2. Approve Resolution 09-XX authorizing the Mayor and City Manager to enter into a Quit Claim Deed transferring the property at 3631 170th Street SE to Twin Cities Habitat for Humanity. 3. Take no action and provide staff with additional direction. RECOMMENDED Alternatives land 2. MOTION: Reviewed by, Frank Boyle City Manager /~/0~ PRjO~ v x 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 PRIOR LAKE CITY COUNCIL RESOLUTION 09-xx A RESOLUTION ENTERING INTO A DEVELOPMENT AGREEMENT WITH TWIN CITIES HABITAT FOR HUMANITY FOR A PROJECT TO BE LOCATED AT 3631 170T" STREET SE, PRIOR LAKE. Motion By: Second By: WHEREAS, on July 13, 2009, the Planning Commission recommended approval of a proposal by Habitat for Humanity to develop a home on property owned by the City and located at 3631 - 170th Street SE, Prior Lake, MN; and WHEREAS, The proposed project supports the 2030 Comprehensive Plan by • encouraging the development of sustainable housing in a desirable environment; • providing opportunities fora variety of affordable high quality housing; • maintaining choice of and encouraging development of quality residential environments; • working with County Housing Redevelopment Authority, other agencies, foundations and non-profit agencies to assist in meeting housing needs; • identifying and implementing innovative strategies for meeting the needs of entry- level and median-income house buyers; and WHEREAS, The Council considered the proposal on April 20th and June 15th, 2009 and directed staff to prepare the necessary agreements to facilitate the project, including acquiring the highest attainable price for the subject project and a commitment from Habitat for Humanity to construct or relocate a residential home on the site that has a price point that makes it attainable by residents with a low to moderate income; and WHEREAS, The staff has prepared a Development Agreement that outlines the terms and conditions for the project; and WHEREAS, The Prior Lake City Council is aware that Habitat for Humanity has a great deal of experience and a stellar reputation in providing attainable housing. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein as if fully set forth. 2. The Mayor and City Manager are hereby authorized to enter into a Development Agreement with Twin Cities Habitat for Humanity for the relocation of an existinq~ home and construction of a Habitat for Humanity project home on property located at 3631 - 1701 Street SE under the conditions set forth in the Development Contract. PASSED AND ADOPTED THIS 8T" DAY OF SEPTEMBER, 2009. YES NO Hau en Hau en Hedber Hedber Erickson Erickson www. cityofpriorlake. com Phone 952.447.9800 /Fax 952.447.4245 LeMair LeMair Millar Millar Frank Boyles, Executive Director R:\Council\2009 Agenda Reports\09 08 09\Habitat Resolution Dev Con.DOC ~~ PRIOR ,~ y 4646 Dakota Street S.E. U 7' Prior Lake, MN 55372-1714 \ ~ \~I~'1VESO~P RESOLUTION 09-xx A RESOLUTION TO APPROVE THE TRANSFER OF CITY-OWNED PROPERTY LOCATED AT 3631 170th STREET SE., PRIOR LAKE TO TWIN CITIES HABITAT FOR HUMANITY Motion By: Second By: WHEREAS, on July 13, 2009, the Planning Commission recommended approval of a proposal by Habitat for Humanity to develop a home on property owned by the City and located at 3631 - 170tH Street SE, Prior Lake, MN; and WHEREAS, The proposal supports the 2030 Comprehensive Plan by • encouraging the development of sustainable housing in a desirable environment; • providing opportunities fora variety of affordable high quality housing; • maintaining choice of and encouraging development of quality residential environments; • working with County Housing Redevelopment Authority, other agencies, foundations and non-profit agencies to assist in meeting housing needs; • identifying and implementing innovative strategies for meeting the needs of entry- level and median-income house buyers; and WHEREAS, The Council considered the proposal on April 20tH and June 15tH, 2009 and directed staff to prepare the necessary agreements to transfer the subject property to Habitat for Humanity in exchange for (1) $22,000 as the highest attainable compensation for the property, and (2) a commitment to construct or relocate a residential home on the site that has a price point that makes it attainable by residents with a low to moderate income; and WHEREAS, The Prior Lake City Council is aware that Habitat for Humanity has a great deal of experience and a stellar reputation in providing attainable housing; and WHEREAS, The Prior Lake City Council has entered into a Development Agreement with Habitat for Humanity that outlines the conditions for the relocation and construction of a single family residential home on the site that meets several of the housing goals set out in the City's 2030 Comprehensive Plan and 2030 Vision and Strategic Plan. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein as if fully set forth. 2. The City Council hereby authorizes the transfer of City-owned property located at 3631 - 170tH Street SE from the City to Twin Cities Habitat for Humanity based upon the conditions of the above referenced Development Contract. 3. The Mayor and City Manager are hereby authorized to execute the Quit Claim Deed on behalf of the City. www. cityofpriorlake. com Phone 952.447.9800 /Fax 952.447.4245 PASSED AND ADOPTED THIS 8T" DAY OF SEPTEMBER, 2009. YES NO Hau en Hau en Hedber Hedber Erickson Erickson LeMair LeMair Millar Millar Frank Boyles, City Manager R:\Council\2009 Agenda Reports\09 08 09\Habitat Resolution QCD.DOC 3631 170th Street Southwest ____ ~ ~ - - - "` T Prior Laka, MN i I i [K LN Y11 n I Rw.9fl1 (a:e1) o I V=80.1 ~ -. o I S 586v5'05"W 1)].00 ~_ Y_ . . ~ ~ ap ._~ ,_ I 'i _.1 ! ". 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NaM ffi ea9re•a a9 rriaPlw 56 aeeaaw Fiat abp add war rn• d d I i ~ SITE ~a~ ~ „rtaa, ;r3 rKn.:ars ,at GRAPHIC 3CALR Parrai a, a AaVe1q d I0.i9 ax b A• aril M d aatl Pond 9 aid old M E .l ~~ firer. b.nrr'ei9, a•mW:9 to N:a rtrtw px tlnrwl, a eV b M• CK x ~~[ j y F Q ua, ra[ ~' ML G•[1nly Rem,ev, 9eW Cwnry, NewaaaN. ; ; Fb m aYOllo na wore 1__._-~ 5 Q ryYwaJ , <ra~ w 1 ~l' 1 SEC. 10, lY?.11e, flNO. t2 , • m • CONTRACT FOR DEVELOPMENT OF LAND IN THE CITY OF PRIOR LAKE, MINNESOTA, TO BE KNOWN AS 3631 170th STREET THIS CONTRACT, made and entered into as of the 8th day of September, 2009, by and between the City of Prior Lake, (hereinafter "CITY") a municipal corporation organized under the laws of the State of Minnesota and Twin Cities Habitat for Humanity, (hereinafter "DEVELOPER") a Minnesota Non-Profit Corporation. RECITALS WHEREAS, DEVELOPER is duly organized to do business in the State of Minnesota and will own prior to construction the PROPERTY within the City of Prior Lake; Scott County, Minnesota legally described in attached Exhibit A, and WHEREAS, DEVELOPER desires to relocate an existing residential structure from its current location to the PROPERTY legally described and depicted in Exhibit A ("DEVELOPMENT PROPERTY") and to rehabilitate the structure; and • WHEREAS, the CITY has ranted a royal to the DEVELOPER sub'ect to certain g pp J conditions including that the DEVELOPER enter into this CONTRACT and meet all of the terms and conditions hereafter set forth; and NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions contained herein, the sufficiency of which is not disputed, it is hereby agreed as follows: 1. RECITALS The Recitals set forth above are herein incorporated as if fully set forth. 2. PURPOSE OF CONTRACT 2.1 The purpose of this CONTRACT is to set out the terms and conditions pursuant to which the CITY grants its approval for the Developer to relocate a residential structure from its current location in the City to the DEVELOPMENT PROPERTY. The DEVELOPER will rehabilitate the house and offer it for sale to an individual who qualifies under the criteria used by the DEVELOPER. The terms and conditions set forth herein are intended to promote and protect the orderly development of land within the City and to assure that the development of the DEVELOPMENT PROPERTY is done in a manner to protect and • preserve the health, safety and welfare of the citizens and property within the City. r:\COUnCiI\2009 agenda reports\09 08 09\habitat dev contract.doc Page 1 2.2 This CONTRACT is intended to achieve the following objectives: • a) To clarify the rights and responsibilities of the parties to this CONTRACT. 3. FINDINGS 3.1 The 2030 Vision and Strategic Plan. In 2002 the City adopted a set of City goals to guide the City's growth and development into the year 2020. In 2007, the 2020 Vision and Strategic Plan was reviewed, revised and update to extend through the year 2030 to coincide with the planning horizon established by the Metropolitan Council and reflected in the City's 2030 Comprehensive Plan. The 2030 Vision and Strategic Plan is the result of efforts by more than 460 residents, staff and volunteers who devoted their efforts and time to a process that has defined a strategic direction for the City. The Plan identifies ten (10) Vision elements. Each Vision Element represents an area of strategic emphasis in order for the City to achieve the goals and objectives of the 2030 Vision and Strategic Plan. Housing Quality and Diversity is one of the Strategic Vision Elements. 3.1.1 Housing Quality and Diversity. The City requires a wide variety of housing options to meet the needs of its residents. This Vision element contains three (3) "Five Year Goal(s)" that are particularly relevant to this CONTRACT: (1) Develop and implement a housing plan that provides opportunities for lifesycle housing; (2) Work with the County Housing and Redevelopment Authority, other • agencies, foundations and non-profit agencies to assist in meeting housing needs; and (3) Identify and Implement innovative strategies for meeting the needs of entry-level and median-income house buyers. 3.1.2 The 2030 Vision Statements further states that: Prior Lake is a people place for a lifetime. Reflecting the region's diverse population, residential neighborhoods are designed to offer a variety of homes, meeting housing needs for all ages and lifestyles. 3.2 The 2030 Comprehensive Plan. The City's Comprehensive Plan sets out goals and objects to guide and measure development. In adopting the 2030 Comprehensive Plan the City Council stated the following goals: 3.2.1 Encourage the development of suitable housing in a desirable environment. 3.2.2 Provide opportunities for a variety of affordable high quality housing. 3.2.3 Maintain choice of and encourage development of quality residential environments. 3.2.4 Work with the County Housing and Redevelopment Authority, other agencies, • foundations and non-profit agencies to assist in meeting housing needs. r:~COLinC11~2009 agenda reports\09 08 09\habitat dev contract.doc Page 2 • 3.2.5 Identify and implement innovative strategies for meeting the needs of entry-level and median-income house buyers. 3.2.6 Achieve diverse housing. 3.3 Working in Partnership with organizations like Habitat for Humanity will help the City realize the goals set for it by its residents and stakeholders. This CONTRACT is important not only for the home it will provide, but also for the experience of the City in Partnering with non-traditional partners to find creative and innovative strategies to address housing needs. . DEFINITIONS, RULES OF INTERPRETATION AND EXHIBITS 4.1 Definitions In this CONTRACT the following terms shall have the following respective meanings unless the context hereof clearly requires otherwise: 4.1.1 "APPROVED FINAL PLAN" means all those plans, specifications, drawings and surveys attributable to the DEVELOPER. 4.1.2 "CITY" means the City of Prior Lake, a Minnesota municipal corporation and • 4.1.3 governmental subdivision of the State of Minnesota. "CITY ATTORNEY" means the City Attorney of the City of Prior Lake. 4.1.4 "DEVELOPER" means Twin Cities Habitat for Humanity, or its heirs successors and assigns. 4.1.5 "DEVELOPMENT PLAN" means the final Elevation Plan approved by the Council attached and incorporated herein as Exhibit B. 4.1.6 "DEVELOPMENT PROPERTY" means the real property, together with improvements, if any, located at 3631 170th Street SE, legally described in Exhibit A, attached hereto and incorporated herein. 4.1.7 "INCLUDING" means including, but not limited to. 4.1.8 "PROJECT" means the relocation of a residential structure from its current location to the DEVELOPMENT PROPERTY, reconstruction and renovation of the residential structure consistent with the APPROVED FINAL PLAN and DEVELOPMENT PLAN, the subsequent sale of the DEVELOPMENT PROPERTY and refurbished structure to an individual or family that meets-the DEVELOPER' S selection criteria. 4.2 Exhibits The following exhibits are attached hereto, incorporated by reference and made a part of this CONTRACT as if fully set forth herein. 4.2.1 Exhibit A -Legal Description of DEVELOPMENT PROPERTY 4.2.2 Exhibit B -Approved Final Elevation Plan stamp dated August 3, 2009. r:\counci1~2009 agenda reports\09 08 09\habitat dev contract.doc Page 3 4.2.3 Exhibit C -City Council Resolution 09- approving the CONTRACT. • 5. SCOPE OF PROJECT 5.1 The PROJECT consists of 14,566 square feet, legally described as shown on Exhibit A, to be developed with a total of one residential unit. The PROJECT shall be developed as shown on the Approved Elevation Plan, attached hereto as Exhibit B. 6. DEVELOPER RESPONSIBILITIES 6.1 The DEVELOPER is responsible for all costs associated with the PROJECT; including, but not limited to: moving the residential structure from its current location in the City to the DEVELOPMENT PROPERTY, obtaining all permits necessary to move and reconstruct, re-establish and renovate the residential structure according to the APPROVED FINAL PLAN and DEVELOPMENT PLAN, making any necessary utility connections, and advertising and organizing volunteers to work on the PROJECT. 6.2 The DEVELOPER shall pay to the City $22,000 for the DEVELOPMENT PROPERTY located at 3631 170' Street SE, at closing on the DEVELOPMENT PROPERTY and prior to relocating the residential structure from its current location 6.3 The DEVELOPER is responsible for providing an affordable/attainable residential housing unit at 3631 170' Street SE, which meets all City Ordinances and is in . conformance with the APPROVED FINAL PLAN and DEVELOPMENT PLAN. 6.4 Payment of all real estate taxes, if applicable, as of the date of sale. 7. DEVELOPER REPRESENTATIONS 7.1 DEVELOPER represents and warrants that neither the execution and delivery of this CONTRACT or the PROJECT contemplated herein, or its completion in compliance with the terms and conditions of this CONTRACT is prevented or limited by, or in conflict with or will result in breach of, the terms, conditions or provisions of any restriction of DEVELOPER, or evidence of indebtedness, contract or instrument of whatever nature to which DEVELOPER is now party or by which it is bound or will constitute a default under any of the foregoing. 7.2 DEVELOPER agrees to hold harmless, indemnify and defend CITY, its Council, agents, employees and CITY ATTORNEY from and against any and all claims or actions of whatever nature arising out of or occurring as a result of the PROJECT or DEVELOPER'S performance under this CONTRACT or as a result of alleged actions or omissions on the part of DEVELOPER, its employees or agents. • r:\counCil\2009 agenda reports\09 08 09\habitat dev contract.doc Page 4 • 8. CLOSING REQUIREMENTS 8.1 CITY agrees to transfer the PROPERTY to the DEVELOPER in accordance with Section 6.2 herein by Quit Claim Deed subject to (a) building and zoning laws, ordinances, state and federal regulations; (b) restrictions relating to use or improvement of the property without effective forfeiture provisions; (c) reservation of any mineral rights by the State of Minnesota; (d) utility and drainage easements which do not interfere with existing improvements. 8.2 The date of closing shall be on or before September 1 1, 2009, unless otherwise mutually agreed to in writing by the CITY and DEVELOPER. 8.3 CITY discloses, to the best of CITY'S knowledge, that the property: is currently zoned Single Family Residential, does not currently receive preferential tax treatment, does not contain and is not served by a private sewer system or private well, and has not been used for the production of methamphetamine. 8.4 As of the date of this Agreement, CITY represents that CITY has not received a notice regarding any new improvement from any assessing authorities, including CITY, the costs of which maybe assessed against the PROPERTY. Any such notice received by CITY after the date of this Agreement and before closing shall be provided to DEVELOPER immediately. • 8.5 DEVELOPER shall pay all closin costs. g 8.6 CITY shall deliver possession of the PROPERTY immediately after closing. 9. RELEASE, HOLD HARMLESS AND INDEMNIFICATION 9.1 DEVELOPER releases from and covenants and agrees that CITY, its City Council, officers, agents, servants, attorneys and employees thereof (hereinafter for purposes of this paragraph, the "indemnified parties") shall not be liable for and agrees to indemnify and hold harmless the indemnified parties against any loss or damage to the DEVELOPMENT PROPERTY or structure that is to be relocated to the DEVELOPMENT PROPERTY, any injury to or death of any person occurring at or about or resulting of moving the residential structure from its current location to the DEVELOPMENT PROPERTY, any defect in the DEVELOPMENT PROPERTY, including but not limited to defects in title, any claims arising from or in connection the sale of the DEVELOPMENT PROPERTY to the DEVELOPER. 10. EVENT OF DEFAULT 10.1 Event of Default Defined. Event of default is any one or more of the following events: r:\COUnCll\2009 agenda reports\09 08 09\habitat dev contract.doc Page 5 10.1.1 Failure by DEVELOPER to timely pay all real property taxes assessed with • respect to the PROPERTY; 10.1.2 Failure by DEVELOPER to observe or perform any covenant, condition, obligation or contract on its part to be observed or performed under this CONTRACT; 10.1.3 Transfer of any interest in the DEVELOPMENT PROPERTY to any individual, single or married, other than an applicant who qualifies to participate in the Habitat for Humanity home ownership program.; or 10.1.4 Failure by DEVELOPER to reimburse CITY for any costs incurred by CITY in connection with this CONTRACT, including the enforcement thereof; including, but not limited to engineering fees, inspection and testing fees, attorney fees and other professional fees. 10.2 Remedv Upon Event of Default. Whenever an event of default occurs, the CITY after providing DEVELOPER notice as provided in paragraph 15, and may take any one or more of the following actions: 10.2.1 CITY may cancel and rescind this CONTRACT. 10.2.2 CITY may take whatever action, including legal or administrative action, which maybe necessary or desirable to CITY to collect any payments due under this CONTRACT or to enforce performance and/or observance of any obligation, contract or covenant of DEVELOPER under this CONTRACT. 10.2.3 CITY may suspend issuance of a Building Permits and/or Occupancy Permits for • the DEVELOPMENT PROPERTY. 10.3 Whenever an Event of Default occurs and the CITY uses its CITY ATTORNEY or employ attorneys or incur other expenses, including employment of experts, for: (1) the collection of payments due or to become due or (2) the enforcement or performance or observance of any obligation or contract on the part of DEVELOPER herein contained, the DEVELOPER agrees that it shall, on demand thereof, pay to the CITY the reasonable fees of its CITY ATTORNEY or other attorneys employed by the CITY and such other expenses so incurred by CITY. The CITY may, at its sole discretion, certify to the County Auditor a special assessment for any fees or expenses incurred by the CIUTY in connection with this PROJECT or to enforce this CONTRACT. Any special assessment certified to the Scott County Auditor pursuant to this paragraph shall be payable in one installment and bear the statutory interest rate. 10.4 Nonexclusive Remedv. None of the actions set forth in paragraph 9.3 or available to the CITY in law or equity are exclusive or otherwise limit the CITY in any manner. 11. WAIVER Failure of the CITY at any time to require performance of any provision of this CONTRACT shall not affect its right to require full performance thereof at any time . thereafter and the inaction of the CITY to enforce the breach of any such provision shall r:\COUnCIl\2009 agenda reports\09 08 09\habitat dev contract.doc Page 6 • not be taken or held to be a waiver of any subsequent breach thereof or as nullifying the effectiveness of such provision. 12. ASSIGNMENT 12.1 DEVELOPER represents and agrees for itself, its heirs, its successors and assigns that DEVELOPER has not made or created and will not make or create any total or partial sale, assignment, conveyance or any trust or power to transfer in any other mode or form this CONTRACT without the prior written approval of the CITY. This provision does not apply to the sale of the DEVELOPMENT PROJECT upon completion of the PROJECT to a purchaser who meets the criteria Habitat for Humanity uses to qualify a participant in its home ownership program. 12.2 The DEVELOPER may not transfer or assign this CONTRACT without the prior written permission of the CITY COUNCIL of the City of Prior Lake. The DEVELOPER'S obligations hereunder shall continue in full force and effect, even if the DEVELOPER sells the lot, any part thereof. 13. PERMITS 13.1 The DEVELOPER shall obtain all necessary approvals, permits and licenses from the CITY, and any other regulatory agencies and the utility companies. If any of the entities • request a change to the APPROVED FINAL PLANS or DEVELOPMENT PLANS, the DEVELOPER shall submit these changes to the CITY for its approval. 13.2 All costs incurred to obtain said approvals, permits and licenses, and also all fines or penalties levied by any agency due to the failure of the DEVELOPER to obtain or comply with conditions of such approvals, permits and licenses, shall be paid by the DEVELOPER. 13.3 The DEVELOPER'S shall defend and hold the CITY harmless from any action initiated by the other regulatory agencies and the utility companies resulting from such failures of the DEVELOPER. 14. RECORDING 14.1 This CONTRACT shall be recorded by DEVELOPER within sixty (60) days from approval of the Resolution authorizing it and prior to the closing of the property, and all terms and conditions of this CONTRACT shall run with the land herein described, and shall be binding upon the heirs, successors, administrators and assigns of the DEVELOPER. The DEVELOPER shall provide and execute any and all documents necessary to implement the recording • 14.2 All recording fees, if any, shall be paid by the DEVELOPER. r:~CO1ll1C11~2009 agend2 reports\09 08 09~habitat dev contract.doc Page 7 15. NOTICE 15.1 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: Twin Cities Habitat for Humanity, 3001 4tb Street SE, Minneapolis, MN 55414. 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 Sipkins & Johnson, Pillsbury Center South, 220 South Sixth Street, Suite 600, Minneapolis, Minnesota, 55402-4501. 15.2 The Notice period shall be fifteen (15) calendar days. 15.3 The Notice shall state the nature of the default, the actions the DEVELOPER must take to cure the default and time the DEVELOPER has to cure the default. The time the CITY gives the DEVELOPER to cure the default shall be determined in the sole discretion of the CITY; however, such time shall be a reasonable time and shall consider any factors that might mitigate against the DEVELOPER being able to cure the default within the time provided. • 16. MODIFICATIONS OR AMENDMENT This CONTRACT maybe amended by the parties hereto only by written instrument executed in accordance with the same procedures and formality followed for the execution of this CONTRACT. 17. HEADINGS Headings at the beginning of paragraphs herein are for convenience of reference, shall not be considered a part of the text of this CONTRACT and shall not influence its construction. 18. VENUE. The appropriate venue for any litigation relating to this CONTRACT is Scott County District Court, Shakopee, Minnesota. 19. SEVERABILITY In the event any provisions of this CONTRACT shall be held invalid, illegal, or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof, and the remaining provisions shall not in any way be affected or impaired thereby. 20. CONSTRUCTION • r:\COUnCiI\2009 agenda reports\09 08 09\habitat dev contract.doc Page 8 • This CONTRACT shall be construed in accordance with the laws of the State of Minnesota. IN WITNESS WHEREOF, CITY and DEVELOPER have caused this CONTRACT to be duly executed on the day and year first above written. Approved by the City Council on the day of , 2009 APPROVED AS TO FORM: DEVELOPER: by By Suesan Lea Pace, City Attorney Its CITY OF PRIOR LAKE By: Its Mayor By: Its Manager • This Development Contract must be signed by all parties having an interest in the PROPERTY. STATE OF MINNESOTA COUNTY OF SCOTT On the day of , 20_, before me, a Notary Public, with and for said County personally appeared Jack G. Haugen and Frank Boyles, to me personally known, being each by me duly sworn did say that they are the Mayor and City Manager, respectively, of the City of Prior Lake, a Minnesota municipal corporation, named in the foregoing instrument; and that said instrument was signed on behalf of the municipal corporation and acknowledged said instrument to be the free act and deed of said municipal corporation. • Notary Public STATE OF MINNESOTA COUNTY OF SCOTT The foregoing instrument was acknowledged before me this day of , 20_ by and by who are the and of TWIN CITIES HABITAT FOR HUMANITY, a Minnesota Non-Profit Corporation, on behalf of said corporation. Notary Public r:\COUnCil\2009 agenda reports\09 08 09\habitat dev contract.doc Page 9 • This instrument prepared by: City of Prior Lake 4646 Dakota Street S.E. Prior Lake, MN 55372 • r:\COUnCiI\2009 agenda reports\09 08 09\habitat dev contract.doc Page 10 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY That part of the Northwest Quarter of the Northeast Quarter of the Northeast Quarter (NW '/4 of NE '/4 of Section 10, Township 114, Range 22, Scott County, Minnesota, described below: Commencing at the Northeast corner of said Northwest Quarter of the Northeast Quarter (NW '/4 of NE '/4); thence on an assumed bearing of East along the North line of said Northwest Quarter of the Northeast Quarter a distance of 641.80 feet to the point of beginning of the land to be described; thence South a distance of 168.00 feet; thence East a distance of 177.00 feet; thence a distance of 168.00 feet; thence West a distance of 177300 feet to the point of beginning. Reserving an easement for highway purposes to grade, construct, operate, maintain, use, alter, repair and remove a public highway, trails, sidewalk, storm sewer, other public facilities and utilities; boulevards and appurtenances, including for drainage and utility purposes and for other public and/or quasi-public uses permitted under Grantor's Management of Public Right-of--Way Ordinance, together with all other rights necessary and convenient for the enjoyment and unrestricted use of same over, under and across that part of the above described property, which is described as follows: That part of the Northwest Quarter of the Northeast Quarter of Section 10, Township 114, Range 22, Scott County, Minnesota, which is denoted as Parcel 9 and shown by the symbol ("Parcel 9") on Scott County Right-of--Way Plat No.38, which lies northerly of the following described line: • Commencing at the Northwest corner of said Northwest Quarter of the Northeast Quarter, thence South O1 degrees 18 minutes 34 seconds West, along the west line of said Northwest Quarter of the Northeast Quarter, a distance of 50.16 feet; thence North 86 degrees 45 minutes OS seconds East, a distance of 645.79 feet to the west line of said Parcel 9 and the point of beginning of the line to be described; thence continuing North 86 degrees 45 minutes OS seconds East, a distance of 55.00 feet to a point on the east line of said Parcel 9; thence North 03 degrees 14 minutes 55 seconds West along said east line of Parcel 9, a distance of 2.08 feet; thence easterly along the south line of said Parcel 9, and anon-tangential curve, concave to the south, a distance of 101.22 feet, delta angle of O1 degrees O 1 minutes 16 seconds, a radius of 5680.00 feet, a chord bearing of North 86 degrees 12 minutes 18 seconds East, a chord distance of 101.21 feet; thence North 86 degrees 42 minutes 56 seconds East, along said south line of Parcel 9, a distance of 20.79 feet to the east line of said Parcel 9 and said line there terminating, according to the record plat thereof, on file in the Office of County Recorder, Scott County, Minnesota • r:\COUnCiI\2009 agenda reports\09 08 09~habitat dev contract.doc Page 11