HomeMy WebLinkAbout5C Amend Stemmer Ridge Development ContractO~ PRI~j
ti ~ ~~ ~ 1 4646 Dakota Street S.E.
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` ~ ~~ ~ CITY COUNCIL AGENDA REPORT
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MEETING DATE: OCTOBER 5, 2009
AGENDA #: 5C
PREPARED BY: STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING AMENDMENT
NO. 4 TO THE DEVELOPMENT CONTRACT FOR STEMMER RIDGE
DISCUSSION: Introduction
The purpose of this agenda item is for the City Council to consider
Amendment No. 4 to the Stemmer Ridge Development Contract.
HiStOrV
On June 6, 2006, the City Council approved the Development Contact for
Stemmer Ridge. On April 16, 2007; the City Council approved an extension to
December 31, 2007 for Phase 2 of Stemmer Ridge. On December 17, 2007
the City Council approved a second extension to December 31, 2008 and on
September 15, 2008 the City Council approved a third extension for Phase 2
of Stemmer Ridge.
Current Circumstances
The Developer, Toll Brothers has requested a 4t" extension to the Completion
Date for the Phase 2 portion of the project from December 31, 2009 to
December 31, 2010. The extension is a reflection of the fact that the
Developer has several lots in inventory and the building market has slowed
substantially. The Developer has posted a separate Letter of Credit for this
phase and has already paid all the required development fees for Phase 2.
ISSUES: Staff recognizes there is an inventory of unsold lots in the City and
recommends granting the extension. The City still has in place the Letter of
Credit from the Developer guaranteeing the completion of the improvements.
FINANCIAL Installation of streets and utilities in areas with vacant lots results in additional
IMPACT: maintenance work for the City (plowing, flushing watermains etc.) Granting
the extension will reduce City maintenance costs.
ALTERNATIVES: The alternatives are as follows:
1. Approve Amendment No. 4 to the Development Contract for Stemmer
Ridge.
2. Deny this item for a specific reason and provide Staff with direction.
3. Table this item until some date in the future.
RECOMMENDED
MOTION: Alternative 1
Frank Boyles, Cit~i IV~a~ager
R:1Counci112009 Agentl~Rep~s110~5 091Stemmer Ridge Asti 'e~t~ltli0rlake.COm
Phone 952.447.9800 /Fax 952.447.4245
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4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
RESOLUTION 09-xx
A RESOLUTION APPROVING AMENDMENT NO. 4 TO THE STEMMER RIDGE
DEVELOPMENT CONTRACT
Motion By: Second By:
WHEREAS, On June 6, 2005, the Prior Lake City Council approved the Development
Contract for Stemmer Ridge with Arcon Development; and
WHEREAS, On August 1, 2005, the City of Prior Lake approved the assignment of the
Development Contract to Toll Brothers, Inc. from Arcon Development; and
WHEREAS, Toll Brothers has completed the improvements in accordance with the
Development Contract with the exception of Phase 2; and
WHEREAS, Toll Brothers has provided the City with a separate Letter of Credit for Phase
2; and
WHEREAS, The Developer has requested an extension for the completion of the Phase 2
improvements of one year to December 31, 2010.
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.
2. The Mayor and City Manager are authorized to execute on the City's behalf Amendment No.
4 to the Development Contract for Stemmer Ridge.
PASSED AND ADOPTED THIS 5T" DAY OF OCTOBER 2009.
YES
NO
Hau en Hau en
Erickson Erickson
Hedber Hedber
LeMair LeMair
Millar Millar
Frank Boyles, City Manager
R:\Counci112009 Agenda Reports\10 05 09\Stemmer'~ec~~~r~~r~ta~~s~laa~n.doc
Phone 952.447.9800 /Fax 952.447.4245
DEVELOPMENT CONTRACT
STEMMER RIDGE
AMENDMENT NUMBER 4
PROJECT #03-34
This AMENDMENT NUMBER 4 ("Amendment") to the DEVELOPMENT CONTRACT
dated June 6, 2005, for Stemmer Ridge is entered into this 5th day of October, 2009, by and between the
City of Prior Lake, a Minnesota municipal corporation ("City"), and Toll MN L.P., a Minnesota
Corporation (the "Developer"). Stemmer Ridge (referred to in the Development Contract and this
Amendment as the "Plat") is legally described as shown on attached Exhibit A which is incorporated herein
as if fully set forth.
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. TIME OF PERFORMANCE. Paragraph 1 of the Amendment No. 2 to the original
Development Contract required the Developer to complete the improvements to Phase 2 as shown in
Exhibit B by December 31, 2009. The completion date of Phase 2 shall be changed to December 31,
2010.
R:\Council\2009 Agenda Reports\10 OS 09\Stemmer Ridge Amendment Dev Contract.DOC
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2. NrrscELr,~vEOUS.
A. Amendments. All of the provisions of the DEVELOPMENT CONTRACT for
Stemmer Ridge, with the exception of this amendments, shall remain in full force and effect, unless
otherwise amended. In order for any amendment to the Development Contract to be valid it must be in
writing, signed by the parties and approved by resolution of the City Council.
B. Waiver and Release. The City's failure to promptly take legal action to enforce this
Development Contract shall not be a waiver or release.
C. Severability. If any portion, section, subsection, sentence, clause, paragraph, or
phrase of this Amendment is for any reason held invalid, such decision shall not affect the validity of the
remaining portion of this Amendment.
D. Assignment. The Developer may not assign this Amendment 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 Plat, or any part of it.
E. Interpretation. This Amendment 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 Amendment as a whole rather than
to any particular section or subdivision hereof. Titles in this Amendment are inserted for convenience of
reference only and shall be disregarded in constructing or interpreting any of its provisions.
F. Jurisdiction. This Amendment shall be governed by the laws of the State of
Minnesota.
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CITY OF PRIOR LAKE:
DEVELOPER:
STATE OF MINNESOTA )
( ss.
COUNTY OF SCOTT)
By:
Jack G. Haugen, Mayor
By:
Frank Boyles, City Manager
By:
Its:
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
by
DRAFTED BY:
City of Prior Lake
4646 Dakota Street
Prior Lake, Minnesota 55372
day of
NOTARY PUBLIC
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