HomeMy WebLinkAbout5C - Development Contract for Stemmer Ridge II
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4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
SEPTEMBER 7, 2010
5C
JEFF MATZKE, PLANNER
CONSIDER APPROVAL OF A RESOLUTION APPROVING AMENDMENT
NO.5 TO THE DEVELOPMENT CONTRACT FOR STEMMER RIDGE
Introduction
The purpose of this agenda item is for the City Council to consider Amendment
NO.5 to the Stemmer Ridge Development Contract.
Historv
On June 6, 2006, the City Council approved the Development Contact for the
subdivision known as Stemmer Ridge. On October 5, 2009 the City Council
approved a fourth extension for Phase 2 of Stemmer Ridge.
Current Circumstances
The Developer, Toll Brothers, has requested a 5th extension to the Completion
Date for the Phase 2 portion of the project from December 31, 2010 to
December 31, 2011. 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.
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.
Installation of streets and utilities in areas with vacant lots results in additional
maintenance work for the City (plowing, flushing water mains etc.) Granting the
extension will reduce City maintenance costs.
Toll Brothers has previously paid all of the development fees for Phase 2.
The alternatives are as follows:
1. Approve Amendment NO.5 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.
Alternative 1
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Re7J:/~
Frank B01yty ~ lanager
Phone 952.447.9800 / Fax 952.447.4245/ www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 1 a-xx
A RESOLUTION APPROVING AMENDMENT NO.5 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, 2011.
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.5 to the
Development Contract for Stemmer Ridge.
PASSED AND ADOPTED THIS 7TH DAY OF SEPTEMBER 2010.
YES
NO
I Myser
I Erickson
I HedberQ
I Keeney
I Millar
Myser
Erickson
HedberQ
Keeney
Millar
Frank Boyles, City Manager
Phone 952.447.9800 1 Fax 952.447.42451 www.cityofpriorlake.com
DEVELOPMENT CONTRACT
STEMMER RIDGE
AMENDMENT NUMBER 5
PROJECT #03-34
This AMENDMENT NUMBER 4 ("Amendment") to the DEVELOPMENT CONTRACT
dated June 6, 2005, for Stemmer Ridge is entered into this 7th day of September, 2010, 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.4 to the original
Development Contract required the Developer to complete the improvements to Phase 2 as shown in
Exhibit B by December 31, 2010. The completion date of Phase 2 shall be changed to December 31,
2011.
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2. MTSCELLANEfll!S;.
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.
e. 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:
By:
Mike Myser, Mayor
By:
Frank Boyles, City Manager
DEVELOPER:
By:
Its:
STATE OF MINNESOTA )
( ss.
COUNTY OF SCOTT)
The foregoing instrument was acknowledged before me this day of , 20
by Mike Myser, 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
day of
,20
by
NOTARY PUBLIC
DRAFTED BY:
City of Prior Lake
4646 Dakota Street
Prior Lake, Minnesota 55372
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