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Home My WebLink About5E Stemmer Ridge Development Contract►�. PRtO� U ��INIVESO�� 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: OCTOBER 3, 2011 AGENDA #: 5E PREPARED BY: JEFF MATZKE, PLANNER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING AMENDMENT NO. 6 TO THE DEVELOPMENT CONTRACT FOR STEMMER RIDGE DISCUSSION: Introduction The purpose of this agenda item is for the City Council to consider Amendment No. 6 to the Stemmer Ridge Development Contract. Hi story On June 6, 2006, the City Council approved the Development Contact for the subdivision known as Stemmer Ridge. On September 7, 2010 the City Council approved a fifth extension for Phase 2 of Stemmer Ridge. Current Circumstances The Developer, Toll Brothers, has requested a 6 extension to the Completion Date for the Phase 2 portion of the project from December 31, 2011 to December 31, 2012. The extension is a reflection of the fact that the Developer still 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: Since this development has been approved for completion under current Zoning Ordinances, any proposed Ordinance Amendments underway are not applicable to the development. Currently there are no Ordinance Amendments proposed which would affect the development plan for Stemmer Ridge which would provide reason to deny the extension request. 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 water mains etc.) Granting the extension will delay increases in city time /costs since additional street and utility construction will not occur immediately. Toll Brothers has previously paid all of the development fees for Phase 2. ALTERNATIVES: The alternatives are as follows: 1. Approve Amendment No. 6 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 Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 61, bw 0-4 ", ' � ,/ 4646 Dakota Street SE Prior Lake. MN 55372 RESOLUTION 11 -xxx A RESOLUTION APPROVING AMENDMENT NO.6 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, 2012. 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. 6 to the Development Contract for Stemmer Ridge. PASSED AND ADOPTED THIS 3rd DAY OF OCTOBER 2011. YES Rej M ser M ser Erickson Erickson Hedberg Hedber Keeney Keene Soukup Souku Frank Boyles, City Manager Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com DEVELOPMENT CONTRACT STEMMER RIDGE AMENDMENT NUMBER 6 PROJECT #03 -34 This AMENDMENT NUMBER 6 ( "Amendment ") to the DEVELOPMENT CONTRACT dated June 6, 2005, for Stemmer Ridge is entered into this 3 rd day of October, 2011, by and between the City of Prior Lake, a Minnesota municipal corporation ( "City "), and Toll Brothers, Inc., a Minnesota Corporation (the "Developer "). Stenuner 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. 5 to the original Development Contract required the Developer to complete the improvements to Phase 2 as shown in Exhibit B by December 31, 2011. The completion date of Phase 2 shall be changed to December 31, 2012. L: \05 FILESX05 SUBDIVISIONX05 FINAL PLAMtcmmer RidgelContract Amendment 61Dev Contract Amendment 6.doe Page I U1111111 �- R KI F WAW A, Amendments. All of the provisions of the DEVELOPMENT CONTRACT for Stemmer Ridge, with the exception of this amendment, shall remain in full force and effect, unless otherwise amended. No additional amendments to the Development Contract shall be valid unless in writing, signed by the patties 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. B. 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. C. 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 fiill force and effect even if the Developer sells one or more lots, the entire Plat, or any part of it. D. 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. E. Jurisdiction. This Amendment shall be governed by the laws of the State of Minnesota. k105 fiics105 subdivision \05 final platstemmer ridgelcontract amendment adev contract amendment b.doc Page 2 CITY OF PRIOR LAKE (SEAL) 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 a 1 �a r 1 I x a) � i 5 11 z t =Toy".. (ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of by NOTARY PUBLIC DRAFTED BY: City of Prior Lake 4646 Dakota Street Prior Lake, Minnesota 55372 1:105 files105 subdivision105 final platWemmer ridgelcontract amendment 61dev contract amendment 6.doc Page 3 EXHIBIT A ---i o� y E � i �V !Hu! �� ,still 'IAi I rb 0 s 6 e as a ��a ` sa a� Y 81 1Pi3E� sg. � s H a S TEMMER RIDGE i f I I r f � Imo" NOt °1338f 7Jrg.J3 r��... �' ti. 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N m. ai.Nw, s•a 6 o-µ — at- .Men a ..n..d t. e.r w m•roYd ' G o O..Iw FA Jaen ey N A.A e.. m. —t ..r ..e ..e.a y G,... r4. awn o..w rn •w e.r o.....sr rb T.r.nwd J.OM Nww N .17.I.feAr nwA he.fM AMnW a . m......f Nar �dw..M M ~ �� ao a ao r:o rm hvr. w d.r S TEMMER RIDGE AM-TA A.. ~ r +..r..) m x ao 10 Westwood «rr SONIM W- JTwf J N J .n..a I EXHIBITA f _..p ♦ g � j -- I j e nw ,�m e „ �� s ad � J ! / , ��•�'f u \ �" -• SGTIf dllRflaLBN �y .jt� �'` L m It a r i f --- -- s g CA PC -# y ` _ ♦ b ♦ • fl 1 4 ._.!~�{, f•.r�f�:+�w",.rwi{•vt .e.. ♦ 1 s x, }� I r V � � � "" w � ga r �e v � r..) � / +.a �� `rss It ( I T „'h�• II /� 1 i 1 c i i i5� Y L o 2 1 H E nn f _..p ♦ g � j -- I j e nw ,�m e „ �� s ad � J ! / , ��•�'f u \ �" -• SGTIf dllRflaLBN �y .jt� �'` L m It a r i f --- -- s g CA PC -# y ` _ ♦ b ♦ • fl 1 4 ._.!~�{, f•.r�f�:+�w",.rwi{•vt .e.. ♦ 1 s x, }� I r V � � � "" w � ga r �e v � r..) � / +.a �� `rss It ( I T „'h�• II /� 1 i 1 c i �tgg� i i s � � fie• '1 t i l l n . o a rm �o s asst 1 L avr�+� - 1 Lis vj4aJ L mb!'v�wg J � A L_m I A - -7 ca Ob L A s xaoa •- .ermrri via 4" Nag °as �! lY — — — — aaaoo –i — Y Q x' � 8 tr �a i w a d J-1EJ1HX3 iil■o Toll Brothers America's Luxury Home Builder September 7, 2011 Jeff Matzke Community & Economic Development Dept. City of Prior Lake 4646 Dakota Street SE Prior Lake, MN 55372 Re: Stemmer Ridge Phase II Improvement Extension Dear Mr. Matzke, Toll Brothers, Inc. would like to request an extension to complete the development work on phase two of the Stemmer Ridge plat through 12/2012. Please let me know if you need any additional information, or if you have any questions. Please feel free to contact me at (651) 365 -0601. Sin ely, ex Martin Division Asst. Vice President Toll Brothers, Inc. Phone: (651) 365 -0601 Fax: (651) 365 -0605 New York Stock Exchange • Symbol TOL Corporate Office 250 Gibraltar Rd. • Horsham, PA 19044 • (215) 938 -8000 tollbrothers.com 'Toll `Brothers America's Luxury Home Builder September 19, 2011 City of Prior Lake Planning Department Attn: Jeff Matzke 4646 Dakota Street SE Prior Lake, MN 55372 Re: Spring Lake Estates — Stemmer Ridge Final Phase Narrative Mr. Matzke, This letter is to serve as a narrative in support of Toll Brothers, Inc.'s request to extend the date to complete the final phase of improvements of the Stemmer Ridge plat. There are currently thirty two (32) improved lots and finished homes available for purchase in the community. The absorption rate has historically been 10 -12 homes per year. As a result of the lots/homes available for purchase, there is approximately three years of existing inventory available. The 18 lots remaining to be improved would add an additional one and a half years of inventory. Also, the majority of final phase of lots are full basement lots (vs. lookout or walkout basements) which are considered inferior and as a result will be less marketable and take additional time to sell than has been historically seen in this community. Based on the above information, we believe it makes the most sense to improve the final phase at a time when there will be the highest probability to sell finished and occupied homes. Due to the current economic conditions, it does not make sense for the city to burden the cost to maintain the roads and utilities in a phase that will not see finished homes for four plus years. Please Let me know if you have any questions. Si erely, Alex Martin Division Asst. Vice President Toll Brothers, Inc. MN Division Phone: (651) 365 -0601 Fax: (651) 365 -0605 New York Stock Exchange • Symbol TOL Corporate Office 250 Gibraltar Rd. • Horsham, PA 19044 • (215) 938 -8000 tollbrothers.com