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HomeMy WebLinkAbout8B - Park Nicollet Addition MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT JUNE 17,2002 8B JANE KANSIER, PLANNING COORDINATOR CONSIDER APPROVAL OF A RESOLUTION APPROVING THE FINAL PLAT AND AUTHORIZING EXECUTION OF THE DEVELOPMENT CONTRACT FOR THE PLAT KNOWN AS PARK NICOLLET ADDITION History: On June 4, 2001, the City Council approved Resolution 01- 71 approving the preliminary plat for Park Nicollet Addition. The preliminary plat consisted of 11.60 acres, to be developed into 4 lots for commercial uses. The existing Park Nicollet clinic is located on Lot 1, Block 1. The City Council also recently approved a senior care overlay district, known as Keystone Communities, for Lot 2, Block 2. The plat dedicates right-of-way for one new public street. This street, called Park Nicollet Avenue, is extended from Franklin Trail to the west boundary of the plat. (Park Nicollet was given the authority to name the street subject to final City Council approval.) Park Nicollet Avenue will be the first segment of the ring road. Eventually, when construction extends from Franklin Trail to Duluth A venue and then to TH 13 at the County Market site, the entire ring road will be called Park Nicollet Avenue. This first segment, from Franklin Trail to the west boundary of the plat, is 1,085' long. It is designed with a 70' wide right-of-way and a 42' wide surface. The road will serve as a collector street for this area. The developer will be responsible for the construction of this road in accordance with the City's standards. Current Circumstances: The principal requirements for final plat approval include a signed Development Contract with surety for the installation of utilities and streets and the satisfactory completion of all preliminary plat conditions. Staffhas reviewed the final plat and finds it to be in substantial compliance with the approved preliminary plat. 1:\01 files\Ol subdivisions\final p1at\park nieollet 01-053\finalee.doe Page 1 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER .,.......-. The Issues: The attached "Development Contract" specifies the required improvements for this plat. For this final plat, the staff has utilized the new standard development contract, adopted by the City Council in February, 2002. This is the standard development contract that will be used in all final plats from now on. Sanitary sewer, water main trunk area charges, collector street construction charges, storm water management fees and parkland dedication fees are outlined in the Development Contract. One of the major changes from the previous development contract is the reduction of the City Administration fee from 6% to 4% of construction costs. Another change is the Construction Observation fee, which has been changed from 6% to 5%ofthe construction costs. The Construction Observation fee is also held in escrow, and any unused remaining portion of the fee is returned to the developer following City acceptance of the public improvements. These are modifications that have been made in accordance with local development interests and with the advice of the City Attorney. As part of the Development Contract for Park Nicollet, the City will also reimburse the developer for "oversizing" costs, which include the additional street width, Y2 of the sidewalk and a streetlight. These are costs over and above what the developer would be required to provide for this development. As part of this final plat, the City Council is also asked to approve the attached "Private Use of Public Property Agreement." This agreement allows the existing Park Nicollet Clinic sign, located at the driveway on Franklin Trail, to remain in its current location. Once this plat is approved, the sign will be located within the public right-of-way. The City agreed to this provision as part of the development contract approved when the Park Nicollet clinic was originally built. Conclusion: An executed copy of the Development Contract for Park Nicollet Addition is attached to this report. Also attached is an executed copy of the "Private Use of Public Property Agreement." Staff will be available to discuss the details of this contract with the Council. All of the conditions placed on the preliminary plat have been satisfied. The final plat is subject to six conditions which will be satisfied prior to the release of the final plat documents. FISCAL IMPACT: Budf!et Impact: Approval of this final plat will allow new construction, which will contribute to the City's tax base. The plat also facilitates the construction of the first segment of the ring road. The required development fees are deposited into the appropriate City accounts. 1:\01 files\O 1 subdivisions\final plat\park nicollet 01-053\fina1cc.doe Page 2 AL TERNA TIVES: RECOMMENDED MOTION: REVIEWED BY: The City Council has three alternatives: 1. Adopt two resolutions: (1) a resolution approving the final plat and Development Contract for Park Nicollet Addition, and (2) a resolution approving the "Private Use of Public Property Agreement" . 2. Deny the resolution approving the Final Plat for Park Nicollet Addition. 3. Defer this item and provide staff with specific direction. The staff recommends Alternative # 1. This requires the following motions: I. A motion and second to adopt a resolution approving the final plat and Development Contract for Park Nicollet Addition and authorizing the Mayor and City Manager to sign the Development Contract. 2. A motion and second to adopt a resolution approving the "Private Use of Public Property Agreement" and authorizing the Mayor and City Manager sign the agreement. Frank 1:\01 files\Ol subdivisions\tinal plat\park nicollet 01-053\tinalce.doc Page 3 T CJ~ RESOLUTION 02~ RESOLUTION OF THE PRIOR LAKE CITY COUNCIL APPROVING THE FINAL PLAT OF "PARK NICOLLET ADDITION" AND DEVELOPMENT CONTRACT AND SETTING FORTH CONDITIONS TO BE MET PRIOR TO RELEASE OF THE FINAL PLAT. MOTION BY: J F SECOND BY: -----M.-6..-- WHEREAS: On June 4, 2001, the City Council approved the preliminary plat known as Park Nicollet Addition, subject to conditions identified by Resolution 01-71; and WHEREAS: The City Council has found that the final plat of "Park Nicollet Addition" is in substantial compliance with the approved preliminary plat for Park Nicollet Addition; and WHEREAS: The City Council has approved the final plat of "Park Nicollet Addition". NOW, THEREFORE, BE IT RESOLVED BY THE CITY 'COUNCIL OF THE CITY OF PRIOR LAKE, MINNESOTA: 1. The recitals set forth above are incorporated herein as if fully set forth. 2. The final plat of "Park Nicollet Addition" is approved subject to the conditions set forth in this resolution. 3. The final plat of "Park Nicollet Addition" is subject to the following conditions, which shall be met prior to release of and recording of the final plat: a. A current title opinion or commitment of title insurance be submitted acceptable to the City Attorney. b. Payment of all fees prior to release of the final plat mylars. c. Reductions of the entire final plat be submitted, to the following scales: 1" = 200' and one reduction at no scale which fits onto an 81/2" x 11" sheet of paper. d. Four mylar sets of the final plat with all required signatures be submitted. e. The developer provide financial security, acceptable to the City Engineer prior to release of the final plat mylars. f. The final plat and all pertinent documents must be filed with Scott County within 90 days from the date of final plat approval. Failure to record the documents by September 17, 2002, will render the final plat null and void. 4. The Mayor and City Manager are hereby authorized to execute the Development Contract on behalf of the City. Passed and adopted this 17th day of June, 2002. ,YES NO Haugen \ Haugen Gundlach Gundlach LeMair LeMair Petersen Petersen Zieska Zieska Frank Boyles, City Manager 1:\01 files\O 1 subdivisions\final plat\park nicollet 01-053\resolution.doc Page 1 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER RESOLUTION O~ RESOLUTION OF THE PRIOR LAKE CITY COUNCIL APPROVING AN AGREEMENT FOR THE PRIVATE USE OF PUBLIC PROPERTY FOR PARK NICOLLET CLINIC MOTION BY: ~~ SECOND BY: ~JP WHEREAS: On June 4, 2001, the City Council approved the preliminary plat known as Park Nicollet Addition, subject to conditions identified by Resolution 01-71; and WHEREAS: A condition of approval of the preliminary plat required that Park Nicollet Health Services enter into a Private Use of Public Property Agreement in order to maintain its sign in its currently location; and WHEREAS: Park Nicollet Health Services is requesting approval of a Private Use of Public Property Agreement in order to maintain its sign in its current location. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, MINNESOTA: 1. The recitals set forth above are incorporated herein as if fully set forth. 2. The Agreement for the Private Use of Public Property includes all of the conditions that must be met in order to maintain the sign in its current location. 3. The City Council agrees to allow the private use of public property, subject to the terms set forth in the agreement. 4. The Mayor and the City Manager are hereby authorized to execute this agreement on behalf of the City. Passed and adopted this 17th day of June, 2002. \ YES NO Haugen \ Haugen Gundlach \ Gundlach LeMair \ LeMair Petersen Petersen Zieska Zieska Frank Boyles, City Manager 1:101 fileslO 1 subdivisionslfinal platlpark nicollet 01-0531agree res.doc Page 1 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER DEVELOPMENT CONTRACT PARK NICOLLET ADDITION PROJECT #01-36 This DEVELOPMENT CONTRACT is entered into this 17th day of June, 2002, by and between the CITY OF PRIOR LAKE, a Minnesota municipal corporation ("City"), and Park Nicollet Health Services, a Minnesota Non-Profit Corporation (the "Developer"), formerly known as HealthSystem Minnesota. 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. REOUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a Plat for Park Nicollet Addition (referred to in this Development Contract as the "Plat"). The land is legally described as shown on attached Exhibit A which is incorporated herein as if fully set forth. 2. CONDITIONS OF PLAT APPROVAL. The City hereby approves the Plat on condition that the Developer enter into this Development Contract, furnish the Security required by it, and record the Plat and Development Contract with the County Recorder or Registrar of Titles within 90 days after the City Council approves the final Plat. 1:\01 files\O 1 subdivisions\final plat\park nicol1et 0 1-053\pn dev con.doc 6/1 0/02 Page I i I 3. RIGHT TO PROCEED. Within the Plat or land to be platted, 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, and 3) the City Engineer or Designee has issued a letter that all conditions have been satisfied and that the Developer may proceed. The foregoing restriction on the Developer's "Right To Proceed" does not apply to grading or other approvals set forth in Resolution No. 01-71, dated June 4, 2001, approving the Preliminary Plat for Park Nicollet Addition. 4. PH4SED DEVELOPMENT. If the Plat is a phase of a multiphased preliminary Plat, the City may refuse to approve Final Plats of subsequent phases if the Developer has breached this Development Contract or any terms or conditions set out in the Resolution approving the Final Plat and the breach has not been remedied. Development of subsequent phases may not proceed until the City approves Development Contracts for such phases. Fees and charges collected by the City in cOlmection with infrastructure, public improvements and parkland dedication requirements are not being imposed on outlots, if any, in the Plat that are designated in an approved Preliminary Plat for future subdivision into lots and blocks. Such charges will be calculated and imposed when the outlots are subdivided into lots and blocks. 5. PRELIMINARY PLAT STATUS. If the Plat is a phase ofa multiphased preliminary Plat, the Developer shall submit a Staging Plan for City Council approval which may allow the Developer more than one (1) year to subdivide the property into lots and blocks. 6. DEVELOPMENT PLANS. The Plat shall be developed in accordance with the Plans identified below. 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 fOlih herein. If the plans vary from 1:\01 files\O] subdivisions\final plat\park nicollet 0 1-053\pn dev con.doc 3/28/02 Page 2 the written terms of this Development Contract, the more specific or stringent controls shall apply. The Plans are: Plan A -- Final Plat Dated March 28, 2002 (Prepared by Sunde Land Surveying) Plan B -- Final Grading, Development, and Erosion Control Planes). These plans will be provided with the development of each lot. Plan C -- Tree Preservation and Replacement Plans Dated April 12, 2001 (Prepared by Sunde Land Surveying) Plan D -- Landscaping Plan. These plans will be provided with the development of each lot. Plan E -- One set of Plans and Specifications for Developer Installed Improvements Dated October 19,2001 (prepared by Sunde Engineering) Plan F -- Street Lighting Plan Dated (Prepared by Xce1 Energy) All plans set forth above are incorporated herein and made part of this Development Contract. 7. DEVELOPER INSTALLED IMPROVEMENTS. The Developer shall install and pay for the following: A. Sanitary Sewer System B. Water System C. Storm Sewer D. Streets E. Concrete Curb and Gutter F. Street Lights G. Site Grading and Ponding H. Underground Utilities 1. Traffic Control Signs J. Street Signs K. Setting of Iron Monuments L. Sidewalks and Trails M. Landscaping 1:\01 files\O 1 subdivisions\final plat\park nieollet 0 I-053\pn dev con.doc 3/28/02 Page 3 Subsections A-M above shall be referred to as "Developer Installed Improvements." 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 Milmesota 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. 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. 8. CONSTRUCTION OBSERVATION. 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. As-built location dimensions for sanitary sewer, watermain and stonn sewer facilities. ]:\01 files\O 1 subdivisions\final plat\park nicollet 0 1-053\pn dev con.doc 3/28/02 Page 4 . 9. DEVELOPER PROVIDED C01\TSTRUCTION SERJ/ICES 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 drawings showing location, dimensions and elevations of all utility improvements, including but not limited to top nut of hydrants, manhole rims, manhole invel1s. (Tie dimensions to sewer and water services from City staff or City consultants.) 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 ce11ified by the Minnesota Department of Transportation. The City Engineer has the sole discretion to detel111ine if additional testing is necessary. The cost of additional testing is to be paid by the Developer. E. Lot corners and monuments. 10. BOULEVARD AND AREA RESTORATION. The Developer shall seed or lay cultured sod in all boulevards within thirty (30) days, or within a timeline established by the City Engineer, of the completion of street related improvements and restore all other areas disturbed by the development grading operation. Boulevard and Area Restoration shall be in accordance with the approved erosion control plan. Upon request of the City Engineer, the Developer shall remove the silt fences after turf establishment. 11. SUBDIVISION MONUMENTS. The Developer shall install all subdivision monumentation within one (1) year from the date of recording the plat, or the monumentation shall be installed on a per lot basis at the time the building permit for the subject lot is issued, whichever occurs first. At the end of the one (1) year period from recording of the Plat, the Developer shall submit to the 1:\0] files\Ol subdivisions\final plat\park nieollet 0 I-053\pn dev con. doc 3/28/02 Page 5 City Engineer written verification by a registered land surveyor that the required monuments have been installed throughout the plat. 12. TIME OF PERFORMANCE. The Developer shall install all required public improvements by September 30, 2002, with the exception of the final wear course of asphalt on streets. The final wear course on streets shall be installed the first summer after the base layer of asphalt has been in place for one freeze thaw cycle. 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 Secmity posted by the Developer to reflect cost increases and the extended completion date. 13. LICENSE. The Developer hereby grants the City, its agents, employees, officers and contractors a non-revocable license to enter the Plat to perfonn all work and inspections deemed appropriate by the City in conjunction with the development of the Plat. 14. EROSION CONTROL. Erosion control plans will be provided with the development of each individual lot. 15. CLEAN UP. 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 Plat, 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. The notice provisions set out in Paragraph 39 shall not apply to notifications to the Developer under this paragraph. 1:\0 I files\O I subdivisions\final plat\park nieollet 0] -053\pn dev con.doc 3/28/02 Page 6 . 16. GRADING PLAN. Grading plans for this plat shall be provided with the development of each lot. 17. OWNERSHIP OF DEVELOPER LrvSTALLED IMPROVE!v[EIVTS. Upon completion of the Developer Installed Improvements required by tIns Development Contract and final written acceptance by the City Engineer, the improvements lying wit1nn public right-of-way and easements shall become City property without further notice or action. 18. STREET MAINTENANCE. Developer shall be responsible for all street maintenance until final written acceptance by the City of the Developer Installed Improvements. Warning signs and detour signs, if determined to be necessary by the City Engineer, shall be placed when hazards develop in streets to prevent the public from traveling on san1e and directing attention to detours. If and when streets become impassable, such streets shall be barricaded and closed. For the purpose of this subparagraph, "street maintenance" does not include snow plowing or normal sweeping. 19. CONSTRUCTION ACCESS. Construction traffic access and egress for grading, public utility construction, and street construction is restricted to Franklin Trail. No construction traffic is permitted on the adjacent local streets. 20. IMPROVEMENTS REOUIRED BEFORE ISSUANCE OF BUILDING PERMITS. A. Grading, curbing, and one lift of bituminous shall be installed on all streets providing access and adjacent to a lot prior to issuance of any building permits for that lot. If building pem1its are issued prior to the acceptance of Developer Installed Improvements, the Developer assumes all liability and costs resulting in delays in completion of the Developer Installed Improvements and damage to Developer Installed Improvements caused by the City, or its agents or contractors, the Developer, its contractors, subcontractors, material men, employees, agents or third parties. 1:\01 tiles\O 1 subdivisions\tinal plat\park nicollet 0 1-053\pn dev con.doc 3/28/02 Page 7 T B. A permanent Certificate of Occupancy shall not be issued for any building in the plat until water and sanitary sewer improvements have been installed and the streets have been completed and the first lift of bituminous has been placed and said improvements have been inspected and determined by the City to be available for use. 21. CITY ADMINISTR4TION. 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 Plat, project monitoring during the warranty period, and processing of requests for reduction in security. Fees for this service shall be four percent (4%) of the estimated construction cost as detailed in Exhibit E, less oversizing costs outlined in Exhibit D, Section A, assuming normal construction and project scheduling. 22. REIMBURSEMENT OF CITY ADMINISTRATION FEES. Once the City approves the construction costs or estimates for the Developer Installed Improvements there will not be any reimbursement to the City by the Developer or to the Developer by the City for City Administration fees. 23. CITY CONSTRUCTION OBSERVATION. Construction observation shall include, but is not limited to, part or full-time inspection of proposed grading, public utilities and street construction and City legal expenses. The Developer shall deposit an amount equal to five percent (5%) of the estimated construction cost, less oversizing costs outlined in Exhibit D, Section A, for construction observation performed by the City's authorized personnel and incurred pass-through legal expenses. 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 1:\01 files\O 1 subdivisions\final plat\park nieollet 0] -053\pn dev eon.doc 3/28/02 Page 8 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. 24. STORM WATER M4NAGEMENT FEE. The Developer shall pay a storm water management fee of $33,993.00 prior to the City signing the final Plat. The amount was calculated as follows: 5.58 acres at $6,092.00 per acre. This calculation was determined by the Trunk Storm Sewer Fee Determination Study adopted by City Council Resolution #01-03 on January 8, 2001. 25. SANITARY SEWER AND WATERMAIN TRUNK AREA CHARGES. A Sanitary sewer and watermain trunk area charge of $34,650.00 shall be paid by the Developer for sanitary sewer and watermain trunk improvements prior to the City signing the final Plat. The amount was calculated as follows: 9.90 acres at $3500.00 per acre. 26. CITY-WIDE COLLECTOR STREET CONSTRUCTION CHARGE. This Development Contract requires the Developer to pay a City-wide Collector Street Construction Charge of $8,370.00 for collector street improvements prior to the City signing the final Plat. The amount was calculated as follows: 5.58 acres at $1500.00 per acre. 27 PARK AND TRAIL DEDICATION. The Developer shall dedicate to the public an amount of cash or land or a combination of both as established by the City. This Development Contract requires the Developer to pay $25,844.00 in lieu of a land dedication prior to the City signing the final Plat. This amount was calculated as follows: Gross area of the plat (less Lot 1, Block 1): 7.28 acres at $3,550.00 per acre. This calculation was determined by the Park Fee Study adopted by City Council Resolution #01-10 on February 5,2001. The fee shall be paid prior to the City signing the final Plat. 28. STREET LIGHTS AND OPERATIONAL COSTS. The Developer is responsible for the installation of the street lighting. The Developer shall pay the full capital cost of every light to be installed; this includes poles, fixtures, underground wiring, and all appurtenant work. The Developer shall pay 1:\01 files\O 1 subdivisions\final plat\park nieollet 0 I-053\pn dev con.doc 3/28/02 Page 9 operation and maintenance for the streetlights until the City accepts the Developer Installed Improvements, at which time the billing shall be transferred to the City. The street light plan must be acceptable to the City Engineer and in accordance with the Public Works Design Manual. 29. LANDSCAPING. Landscaping for this Plat will be provided with the development of each lot. 30. TREE PRESERVATION AND REPLACEMENT. Tree replacement shall be provided as shown on approved Plan C. This replacement shall occur with the development of Lot 2, Block 2. 31. SECURITY. 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 $343,332.00. The amount of the Security was calculated as follows: DEVELOPER INSTALLED IMPROVEMENTS COSTS: Sanitary Sewer $ 9,873.00 $ 27,144.00 $ 23,678.00 $ 213,971.00 $ .0.00 $ 0.00 $ 0.00 $ 274,666.00 X 1.25 Page 10 Watermain Storm Sewer S treets/S idewalks/Trails/S i gns/Erosi on Contro 1 Landscaping Tree Preservation and Replacement Erosion Control ESTIMATED DEVELOPER INSTALLED IMPROVEMENTS SUBTOTAL 1:\01 files\OI subdivisions\final plat\park nieollet 01-053\pn dev con.doc 3/28/02 TOTAL FOR IRREVOCABLE LETTER OF CREDIT AMOUNT $ 343,332.00 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, 2003. Individual Security instruments may be for shorter tem1S provided they are replaced at least fOlty-five (45) days prior to their expiration. 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 it down. Uthe Security is drawn down, the proceeds shall be used to cure the default. 32. CITY DEVELOPMENT FEES. The Developer shall also furnish the City with a cash fee of$118,013.00 for City Development Fees. The amount of the cash fee was calculated as follows: CITY DEVELOPMENT FEES: City Administration Fee (4%) Storm Water Management Fee $ 6,736.00 $ 8,420.00 $ 33,993.00 $ 34,650.00 $ 8,370.00 $ 25,844.00 $ 118,013.00 City Construction Observation (5%) Sanitary Sewer and Watermain Trunk Area Charges City- Wide Collector Street Construction Charge Park and Trail Dedication Fee (if in lieu ofland) TOTAL CITY DEVELOPMENT FEES 33. REDUCTION OF SECURITY. Upon receipt of proof satisfactory to the City that the required work has 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 1:\01 files\OI subdivisions\final plat\park nicollet OJ -053\pn dev con. doc 3/28/02 Page II T 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. 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 constmction. 34. W ARR4NTY. The Developer warrants all Developer Installed Improvements required to be constmcted by it pursuant to this Development Contract against poor material and faulty workmanship. The warranty period for streets is one year. The warranty period for underground utilities is two years. The warranty period on Developer Installed Improvements shall commence on the date the City Engineer issues written acceptance of the improvement. The Developer shall post warranty bonds as secmity. The City shall retain twenty-five percent (25%) of the Security posted by the Developer until the City Engineer accepts the Developer Installed Improvements and the warranty bonds are furnished to the City. 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 [mal acceptance of streets and utilities. These standards are set out in the Public Works Design Manual. 35. OVERSIZLVG. City and Developer agree that the Developer Installed Improvements should be oversized for the benefit of future development. Oversizing is the construction of a Developer Installed Improvement to City specifications that exceeds those that would otherwrise be required of the ]:\01 files\O I subdivisions\final plat\park nicollet 0 1-053\pn dev eon.doc 3/28/02 Page 12 Developer. Oversizing improvements include, but are not limited to, sanitary sewer, water, storm drainage facilities, and road improvements. If the City Engineer determines that oversizing is required, the City shall reimburse the Developer for the costs associated with this work and as approved in this contract. City and Developer agree that the cost of system oversizing to be reimbursed to the Developer is $128,889.71 based upon a cost estimate by the City Engineer as determined by an engineer's estimate or contractors bid to be provided by the Developer and application of the City's Assessment Policy based on a final engineering design. The calculation for oversizing is attached as Exhibit D. 36. 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 Rule 22, Minnesota Rules of Civil Procedure for the District Courts, to draw upon the Irrevocable Letter of Credit Security in an amount up to 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 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 1 Y:t percent (1.5%) per month or any part of 1:\01 files\O 1 subdivisions\final plat\park nicollet 0] -053\pn dev con.doc 3/28/02 Page 13 a month. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $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. (See Minn. Stat. ~471.425, Subd. 4a.) 37. RESPONSIBILITY FOR COSTS. A. The Developer shall reimburse the City for costs incurred in the enforcement of this Development Contract, including engineering and attomeys' fees. B. Except as provided in Paragraphs 14 and 15 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. 38. DEVELOPER'S DEFAULT. A. Definition. In the context of tins 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 perfom1ed under this Development Contract; (4) transfer of any interest in the Plat; (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 1:\0 I files\O 1 subdivisions\final plat\park nicollet 0] -053\pn dev con. doc 3/28/02 Page ] 4 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 tem1S of Paragraph 39 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 tem1S 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 perfonnance and/or observance of any obligation, agreement or covenant of development under this Development Contract. 5. The City may suspend issuance of building pennits and/or certificates of occupancy on any of the lots, including those lots sold to third parties, in this Plat. 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. 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. 1:\01 files\O 1 subdivisions\final pJat\park nieollet 0 1-053\pn dev con.doc 3/28/02 Page 15 C. Election of Remedies. None of the actions set forth in this Section are exclusive or otherwise limit the City in any manner. 39. NOTICES. Whenever any paragraph in this Development Contract, with the exception of paragraphs 14 and 15, 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, and mailed to the Developer by certified mail at the following address: Park Nicollet Health Services, Attention: Duane Spiegle, 3800 Park Nicollet Boulevard, St. Louis Park, MN, 55416, and mailed to Roseanne M. Hope, Dorsey & Whitney, LLP, Suite 1500,50 South Sixth Street, Minneapolis, MN 55402-1498.. 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, 16200 Eagle Creek Avenue, 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. 40. INDEM1YIFICA TION. 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 attomeys' 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 1:\01 files\O 1 subdivisions\final plat\park nico1\et 0 1-053\pn dev con.doc 3/28/02 Page ] 6 Council, agents, employees, attorneys and representatives does not extend to any negligence or VI.rillful or intentional misconduct on the part of any of these individuals. 41. NO THIRD PARTY RECOURSE. The City and Developer agree that third pm1ies 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 Plat 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 40 shall apply to said actions. 42. INSURANCE REOUIREMENTS. 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 Plat. 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. 43. RECORDING DEVELOPMENT CONTRACT. This Development Contract shall run with the land. The Developer, at it's sole cost and expense, shall record this Development Contract against the title to the property within ninety (90) 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 1:\01 files\O 1 subdivisions\final plat\park nieollet 0 1-053\pn dev con.doc 3/28/02 Page 17 of the property being final platted 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 platted; and that the Developer indemnifies and holds the City harmless for any breach of the foregoing covenants. 44. SPECL4.L PROVISIONS. The following special prOVISIOns shall apply to Plat development: A. Compliance with all of the conditions listed in the Resolution approving the final Plat. B. The Developer is required to submit the final Plat In electronic fOffi1at. The electronic format shall be compatible with the City's current software. 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. 45. MISCELLANEOUS. A. Compliance 'With Other Laws. The Developer shall, in developing the property that is subject to this Development Contract, comply 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 development does not comply, or receives notice from any county, metropolitan, state or federal agency (collectively "Agency") that the development does not comply, the City may, at its option, refuse to allow construction or development work in the Plat until the Developer does comply. Upon the City's demand, the Developer shall cease work until there is compliance. l:\Olfiles\Olsubdivisions\final plat\park nieollet 01-053\pn dev con.doc 3/28/02 Page 18 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 will not be unreasonably withheld. No consent is required to assign this Development Contract to an affiliate or subsidiary, as long as the Developer provides the City with notice in accordance with Paragraph 39 of this Development Contract. 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. However, if an assignment is made to an affiliate or subsidiary, all of the terms and conditions required by this Development Contract shall apply to the assignee. If there is an assignment to an affiliate or subsidiary, the Security posted pursuant to tins Development Contract shall not be released unless or until the affiliate or subsidiary provides a Security as required of the Developer by the Development Contract. 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. 1:\01 files\O 1 subdivisions\final plat\park nicollet 0 1-053\pn dev con. doc 3/28/02 Page 19 F. Jurisdiction. This Development Contract shall be governed by the laws of the State of Minnesota. 46. TERMINATION OF PRIOR AGREEMENT. This Development Contract supersedes the Preliminary Agreement for Development Contract between the City of Prior Lake and the Developer dated May 19, 1997. CITY OF PRIOR LAKE (SEAL) By: Jack G. Haugen, Mayor By: Frank Boyles, City Manager STATE 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 Milmesota 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 ) l:\OJfiles\Olsubdivisions\finaJ plat\park nicollet 01-053\pn dev eon.doc 3/28/02 Page 20 T e foregoinu instrument was acknowledged before me this to!!' day of ~L , 20~ W , the G:"V fJ. ~~() Park Nic llet Health Services, a esota Non-profit Corporation. . ~~~thMf DRAFTED BY: City of Prior Lake 16200 Eagle Creek Avenue SE Prior Lake, Minnesota 55372 1:\01 fiJes\O 1 subdivisions\finaJ plat\park nicollet 0 1-053\pn dev eon.doc 3/28/02 Page 21 CONTRACT PURCHASER CONSENT TO DEVELOPMENT CONTRACT Keystone Communities, LLC, 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 k4( day of i.j~/ , 20~. ~(,'f: /1~~fPC~T STATE OF MINNESOTA ) -Jh11I1hD+1... _ (ss. COUNTY OF ~~ ) . . The foregoing instrument was acknowledged before me this 1ST day of 200a , by 1) d1C{ &' ". /..eu.h' ~~Uu J ~ NOTARY PUBLIC DRl\.FTED BY: . .;-....~ ~ -- ~ .. ~ . c-.......--TERESA A fANE \ \ ir~'!,:;'" NOTARY PUBLIC - MINNES06~5 . \ .., My commission Expires Jan. 31, 2 City of Prior Lake 16200 Eagle Creek A venue SE Prior Lake, Minnesota 55372 1:\0 1files\0 1 subdivisions\tinal plat\park nieollet 0 1-053\pn dev eon.doc 3/28/02 Page 22 r I I I ~ I I . . i ~ . . :. ! 1 i . , ! t . ! I ~ ! (t i ~ .t. ~i .~ i Ill:, .... ~., ~~ ~ ,;'0 ~~ .;;i zU. ~. n .~ a:q::. . . ~. ,. ~~ ii >to; 0- ~ ~ ~ q ~ h.. ltJ -....J c3 ~ ~ ~ 0: ; ~.. 'O . il j ~~5LmH'O N r--,--, ; ;. : .,:~.~. (~~ :f---t--..., ... I 1.,_ I S I -.... I . _":.. I L__...L__..J ~ If't75000__ r 'JJS~./llS:Jo1J.JCl U. 15)/1t.~j.JOlMI1J1'fl"'\ ~J.".lU'.",*",_",.,~ ~~ :~ .."'.... ..,oJr..... DJ"o}rnHOI'OS. +llro!; " 1III)1lI~ .JO ;JfoIIl 11)10- "' < u V> o z .., EXHIBIT A ~ ! ;; ..; 1 . : 1 ! . . g~ ~ "j i ~ i ~~ ~i ..I ~~ y: ~; a ::: .. li il H rl ~ 0: Q. :l :. 1 ~~ t!. : .0 l.-"~ ;.! ~ .5, I y ~ i ~ i i I! ~ '.. e ~ i I ~ ~ ~ I .~~~ ..~ 1''' ",,"... i: .. ;~ "\~,.. ~;;,!: ~~ "')~\,; ... ",lll ~ ... ~~;...~ i~'!) ~: i!~ ~! ; Hi 0:~1~ i:!~; ig {"'r"'l. ,I i - t"-: :'-. :~_.!~. ~ ~ .18 ; I ~ ~ f:"'~'~'~'. r ~h :~....J loffi' .... !I r- D, ~;:9T'~"'6--';~ -~! '.. 71; '''~'''' .: ~".,. ',....r, '~'" \ li!a :' .1 ~ ".. ~I \\'" <':.'~::~~ ~"... j - ~ - j~~L ~.~:._~ . f l~~~~".r" ',I \ ... il j ~I '~'4-~ ~l . ..;~-~,~ 1l..",.!g" _ -lt1. ::'..TW_ ~~ .~ .:: Y. DOT" OlIdl- "!!!J.~ .... \ .'~:.::;", 1lIo 2lI:l U. .... ~r;~:::.~:;'.ON..' .., "' --' < U -'" o z 'II } J m ; bo.~ m "..1/'1 . >. iii I ' ~i! ~~i ~ :~; ~ ~i: ,~ !.1 l: - ~ ~; ~]~ l ~H i~l t! l'. ~ R 11" 1~1 ~:i~ Ii; ~;~1 HH "\ ~ ~ i: !i i;;! l~;i i;i! i E~ f !Hi ~ij ~ ;0....-_ j !!i _ ii~ . t ." :S .~ . m ti . ~ . 11 s .. . , !U 'O ..-:.... i _~ i.I ! te !: ~- ~; I Ig ;1 ~ I~:i E ! f I ., : ", ~i .% I. I! .. ~1 ..; 0;: .0 ji ." vI II ,~ ~t ~~ ... ~ . !i " -" 01 H i ~ , ... , ~ - ~ . ~ . - } .: .l ! ~ ~ ~ ~ - ~ tii ,f~ i~ ;; . ~ l o' r' ti .. i! i , ~ .. t ~~ ~ n ~ 5b -~ ~,.. .i ~~ " 'O, ia..~ ~" ;j i ~ ~~ . !!~,~::~ I .:;:>.. ~ ~:~"~'~'" '.:z~.u :..::;:~::::::~ ::::"""l 'C"'''C3 .:,.,....:: :::.; ('4.1.' Lf1l,n..... t.:l7.>JO./':!S)IolI./lO l/, IS)otolMJ JO~lIS.)-, '"..Z I,Lr.os 8{;:.':!r:" . ..... ~: t// Q]1_)OniCJooS."lno$ .n .... J) "1 n,.., ~tTl" .,.. '" ""t:l O*, .,:' .~~"l~ ,~\'\~ ,,= J.rO.Lt.ON ," ;e.~6g 1.../ I.Lf.ON ! 'O " ! i; 8 ~ .. ~ 'O ~ 18 18 d ~ , ,11: ,,", .'" :" f"I I';: "'l.1 ~ ~I "I 1 ~l ~I '. <- .. 1 ,~ :L. H ! ; ~ ~ !~l .c: ...~ E .( 'II: ! ~H : r~~ ~ s;; : : E:' ~ 11; rll"/ .. Vl ~:: ~s ~ ~.~ ~~ '"' nt ., % & ~! ;:r: -. "0 ~~ 'u ~~ . ~ ------l I I I I I ~ ... ... '=il .. .. ... .... Il.I .. I. .. .. r.fJ , I - W .. .. c; ... ~ r.fJ ~ I ~ r:\:: -=;7;;\ ~:.) ~ L~\ ~ ~ ~ ~ ~l~ ~~~ 'N% ~::' ~~~ :....2 -!w! ~;1 .. . .:~; y' -. o. "1{ .~{ J~~!~ . .....:.. . .::'-i,.. :! ~ Ill: ~ i~]~. ,~ ~ ..=. '. '- ~~ ~! ; ooE' ;!i I . "-I _1_-, -n "'1 ~;:;= ~~g ~...% 00' .0 ~~~ ~~~ ~~~ l~~ =.~~ ~S~ . . goQ ~~~ EXHIBIT "B" SAMPLE IRREVOCABLE LETTER OF CREDIT No. Date: TO: City of Prior Lake 16200 Eagle Creek Avenue Prior Lake, Minnesota 55372-1715 Dear Sir or Madam: We hereby issue, for the account of (Name of Developer) and in your favor, our Irrevocable Letter of Credit in the amount of $ , available to you by your draft drawn on sight on the undersigned bank. 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 November 30, 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, 16200 Eagle Creek Avenue, 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 l~mited 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 1:\01 files\O 1 subdivisions\final plat\park nieollet 0] -053\pn dev con.doc 3/28/02 Page 24 EXHIBIT "C" SAMPLE CERTIFICATE OF INSUR<\NCE PROJECT: CERTIFICATE HOLDER: City of Prior Lake 16200 Eagle Creek Avenue Prior Lake, Minnesota 55372-1714 INSURED: ADDITIONAL INSURED: City of Prior Lake AGENT: WORKERS' COMPENSATION: Policy No. Expiration Date: Effective Date: Insurance Company: COVERAGE - Workers' Compensation, Statutory. GENERAL LIABILITY: Policy No. Expiration Date: Effective 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: 1:\01 files\O 1 subdivisions\final plat\park nieollet 0 I-053\pn dev con. doc 3/28/02 Page 25 Operations of Contractor: YES Operations of Sub-Contractor (Contingent): YES Does Personal Injury Include Claims Related to Employment? YES Completed Operations/Products: YES Contractual Liability (Broad Form): YES Governmental Immunity is Waived: m Property Damage Liability Includes: Damage Due to Blasting YES Damage Due to Collapse YES Damage Due to Underground Facilities "Y"ES Broad Form Property Damage "Y"ES AUTOMOBILE LIABILITY: Policy No. Effective Date: Expiration Date: Insurance Company: (A) 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 DkDUCTIBLES 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 COMP.I\NY WILL MAlL TIDRTY (30) DAYS WRITTEN NOTICE TO THE PARTIES TO WHOM TillS CERTIFICATE IS ISSUED. Dated at On BY: Authorized Insurance Representative 1:\01 files\O 1 subdivisions\final plat\park nicollet 0 I-053\pn dev con.doc 3/28/02 Page 26 EXHIBIT "D" TO DEVELOPMENT CONTRACT (Oversizing Calculations for Developer Installed Improvements) A. OVERSIZING 1. Street Street Cost* Schedule Al 10-ton Street Design $213,971.01 Schedule A2 7-ton Street Design $117,907.80 Difference $96,063.21 2. SIDEWALK y~ of sidewalk ($20,397.00) = $10, 198.50 3. RIGHT-OF-WAY 70' x 700 feet of road = 49,000 square feet 60' x 700 feet of road = 42,000 square feet 7,000 square feet or 0.16 acres 0.16 acres x $100,000 ** = $16,000 4. STREETLIGHT 1 @ $4,478.00 = $4,478.00 5. REALIGNMENT OF ROAD Redrawing fmal plat to accommodate the realignment ofthe road at the City's request. Total = $4,600.00 6. The Developer requested that the Ring Road Storm Sewer be redesigned to accommodate the proposed Keystone Communities project at a cost to the City of $2,450.00. The Developer is responsible for reimbursing the City for this cost. TOTAL OVERSIZING Road Sidewalk ROW Streetlight Realign Road Storm Sewer Redesign TOTAL $ 96,063.21 $ 10,198.50 $ 16,000.00 $ 4,478.00 $ 4,600.00 $ (2,450.00) $ 128,889.00 *See Engineer's Estimate (Exhibit E) for detailed quantities and unit prices. ** Based on estimated per acre land value per Park Fee Study adopted February 5, 2001. 1:\0 1 files\O 1 subdivisions\final plat\park nicollet 01-053\pn dev con. doc 3/28/02 Page 27 EXHIBIT "E" TO DEVELOPMENT CONTRACT ESTIMATED CONSTRUCTION COSTS Citv of Prior Lake. MN i I Revised per City Comments 1/8102 Ring Road "- Crystal Care Plat I -1 ! i I I ! 1 1 I Schedule A1 - Street Construction (10 ton Design) I I I I Item Description I Unit Qtv Unit Cost Extended Cost 1 Mobilization, General Conditions. Fee I LS 1.001 $38,515.00 $38,515.00 2 I Clearino and Grubbmg I ACRE 1.60 $3,000.00 $4.800.00 3 I Common Excavation I CY 5.000.00 $5.40 $27.000.00 3a IExport CY 1.99300 $11.65 $23.218.45 4 I Select Granular Borrow (18") CY 1,99300 $8.10 $16,143.30 5 IAgQregate Base Class 5 (8") TON 1,62400 $10.39 $16.873.36 6 I Bitummous Mixture (5") TON 1.088.00 $33.50 $36,448.00 7 I Bitummous Overlav 11 1/2") I TON 117.00 $36.50 $4.27050 8 I Bituminous Material for Tack Coat GAL 262.00 $1.50 $393.00 9 I Concrete Curb & Gutter DeSign B618 LF 1.820.00 $9.32 $16.962.40 10 I Traffic Control LS 1.00 $1.00000 $1.000.00 11 14" Solid Line White-Epoxy LF 2,200.00 $0.50 $1.100.00 12 4" Double Solid Line Yellow-Epoxy LF 1.100.00 $1.00 $1.100.00 13 Silt Fence LF 1.220.00 $1.50 $1.830.00 14 Sodding SY 1.56800 $2.50 $3.920.00 15 Concrete Walk SF 7,845.00 $2.60 $20.397.00 Subtotal $213.971.01 Total Street Construction $213.971.01 ScheduleA2 - Street Construction (7 ton Desion) Item Description Unit Qty Unit Cost Extended Cost 1 Mobilization. General Conditions. Fee LS 1.00 $25.932.00 $25.932.00 2 Clear!nQ and Grubbino ACRE 1.60 $3.000.00 $4,800.00 3 Common Excavation CY 618.00 $21.50 $13.287.00 4 Aoaregate Base Class 5 (6.) TON 806.00 $12.00 $9,672.00 5 Bituminous Mixture (4") TON 576.00 $34.00 $19.584.00 6 Bituminous Material for Tack Coat GAL 128.00 $2.50 $320.00 7 Concrete Curb & Gutter Design B6 1 8 LF 1,44000 $9.32 $13,420.80 8 Traffic Control LS 1.00 $ 1 .000.00 $1.000.00 9 4" Solid Line White-Epoxy LF 1.440.00 $0.50 $720.00 10 4" Double Solid Line Yellow-Epoxv LF 720.00 $1.00 $720.00 11 Silt Fence LF 1,220.00 $1.50 $1.830.00 12 SoddinQ SY 2,490.00 $2.50 $6,225.00 13 Concrete Walk SF 7.845.00 $2.60 $20.397.00 Subtotal $117.907.80 Total Street Construction $117.907.80 I I RlngRoad ConstructionCostMNDOT 1 EXHIBIT "E" TO DEVELOPMENT CONTRACT ESTIMATED CONSTRUCTION COSTS Schedule B - Storm Sewer , -r I I Item I Descriotion Unit aty Unit Cost Extended Cost 1 18" PVC Storm Sewer i LF 90.00 $15.00 $1.350.00 2 ,12" RCP Storm Sewer ! LF 108.00 $20.00 $2.160.00 3 15" RCP Storm Sewer LF 60.00 $22.00 I $1,320.00 5 24" RCP Storm Sewer LF 299.00 $32.00 $9.568.00 6 6" PVC Apron Each 1.00 $30.00 $30.00 7 24" RC Aaron Each 1.00 $900.00 $900.00 8 ! Storm Sewer Radial Grate Catch Basin Each 1.00 $900.00 $900.00 9 Storm Sewer Curb Box Catch BaSin I Each 2.00 $1,490.00 $2.980.00 10 Storm Sewer Manhole i Each 3.00 $1,490.00 $4.470.00 I I ! I Subtotal $23.678.00 I Total Storm Sewer $23.678.00 Schedule C . Sanitary Sewer Item Description Unit Qty Unit Cost Extended Cost 1 Connect to Existing Sanitary Sewer MH Each 1.00 $600.00 $600.00 2 8. PVC Sanitary Sewer LF 302.00 $15.00 $4.530.00 3 Sanitary Sewer Manhole Each 3.00 $1.581.00 $4.743.00 , Subtotal $9.873.00 Total Sanitary Sewer $9,873.00 RlngRoadConstructionCostMNDOT1 2 EXHIBIT .E" TO DEVELOPMENT CONTRACT ESTIMATED CONSTRUCTION COSTS I I I Schedule D . Watermain I I ! I ! Item Description 1 Unit Qtv Unit Cost Extended Cost 1 Connect to EXisting 8" Watermam Each 1.001 $650.00 I $650.00 2 6" Gate Valve and Box Each 2.00 $470.00 $940.00 3 8" Gate Valve and Box Each 4.001 $640.00 $2.560.00 4 16" Watermam -- Ductile Iron Class 52 LF 68.00 $18.00 I $1.224.00 5 8" Watermaln -- Ductlon Iron Class 52 LF 821.00 $20.00 $16,42000 6 Hvdrant Each 3.00 $1,700.00 I $5.100.00 7 8" X 6" Reducer Each 1.00 $250.00 ! $250.00 I I i Subtotal $27.144.00 ! , Total Watermain $27,144.00 I Summary ,Schedule.A1. Street Construction (10 ton) $213.97101 Schedule B - Storm Sewer $23,678.00 Schedule C - Sanitarv Sewer $9.873.00 Schedule D - Watermain $27.144.00 Total Estimated Project $274.666.01 Summary Schedule A2 - Street Construction (7 tonl $117.907.80 Schedule B - Storm Sewer $23.678.00 Schedule C - Sanitarv Sewer $9.873.00 Schedule D - Watermain $27,144.00 Total Estimated Project $178,602.80 RingRoad ConstructlonCostMN DOT 1 3 EXHIBIT "F" TO DEVELOPMENT CONTRACT CONDITIONS OF PLAT APPROVAL 1. A current title opinion or commitment oftitle insurance is submitted acceptable to the City Attorney. 2. Payment of all fees prior to release of the final plat mylars. 3. Reductions of the entire final plat be submitted, to the following scales: 1" = 800'; 1" = 200'; and one reduction at no scale which fits onto an 81/2" x 11" sheet of paper. 4. Four mylar sets of the final plat with all required signatures are submitted. 5. The developer provides financial security, acceptable to the City Engineer prior to release of the final plat mylars. 6. The final plat and all pertinent documents must be filed with Scott CouI}ty within 90 days from the date of final plat approval. Failure to record the documents by '1'//",:;..- LD Z, will render the final I . plat null and void. 1:\01 files\O 1 subdivisions\final plat\park nieollet 0 1-053\pn dev eon.doc 3/28/02 Page 31 AGREEMENT FOR PRIVATE USE OF PUBLIC PROPERTY This Agreement is made this 17th day of June, 2002, between the CITY OF PRIOR LAKE, Minnesota, a municipal corporation (the "City"), and Park Nicollet Health Services, a Minnesota non-profit corporation (the "Owner"). RECITALS A. The Owner is the fee owner of property located at 16705 Franklin Trail SE, Prior Lake, Minnesota (the "Owner's Property"), legally described as follows: Lot 1, Block 1, Park Nicollet Addition B. The Owner's Property abuts park Nicollet Avenue, a road dedicated to the public in the plat of Park Nicollet Addition (the "Road"). C. The Owner maintains a sign on the Owner's Property, which sign encroaches on the Public Property (the "Improvement"). D. The Owner desires to maintain the Improvement in is current location. The City is willing to permit the Improvement to remain in its current location, subject to the terms and conditions of this Agreement. AGREEMENT In consideration of the foregoing and the mutual covenants herein, the parties agree as follows: 1. DEFINITION OF IMPROVEMENT. The "Improvement" is defined as the 6'6" by 3 '3" post and panel identification sign, shown on attached Exhibit "A" and located as shown on attached Exhibit "B". L:\Oltiles\Olsubdivisions\Final Plat\Park Nicollet 01-053\Private Use of Public Property. doc Page I 2. PUBLIC PROPERTY. The Owner acknowledges that the Improvement encroaches on the Road, which Road was dedicated to the public by the plat of Park Nicollet Addition and which must remain open to the public for public use. 3. MAINTENANCE OF PERMIT PROPERTY; MODIFICATION~ Owner shall maintain the Permit Property in good condition at all times, at their sole cost and expense. If Owner fails to do so, the City may cause the necessary repair or maintenance to be done at Owner's cost. If Owner fails to pay the City for such costs, the City may assess the costs against Owner's Property. Owner shall not make any modifications to the Road or otherwise modify the Permit Property without the prior written approval of the City, which may be given or withheld in the sole discretion of the City. 4. TERMINA TION. In the event the City desires to use the Permit Property for a purpose which is inconsistent with the sign use by Owner, to be determined in the City's sole discretion, or in the event Owner fails to comply with any requirement of this Agreement within sixty (60) days after receiving a notice from the City requesting such compliance, the City through its City Manager may terminate this Permit Agreement by giving ninety (90) days written notice ofternlination to Owner by certified mail at the following address: . Such notice may, at the City's option, require Owner to completely remove the sign from the Permit Property within said ninety (90) day notice period, including all debris. If this Permit Agreement is terminated by the City as provided herein, Owner will be solely responsible for all costs and expenses related to construction of a sign which is located on Owners Property, in accordance with all City Ordinances. If Owner fails to remove the sign as required by a proper notice of termination, the City may cause the removal to be done and the costs of such work shall be paid by Owner. If Owner fails to pay the City for such costs, the City may assess the costs against the Owner's Propeliy. 5. MAINTENANCE. Subject to the City's right to ternlinate this Agreement as provided elsewhere in this Agreement, the Owner may maintain the Improvement and the electrical utilities serving the Improvement, in its location as of the date of this Agreement for the remainder of the useful life of the Improvement. The Owner shall perform, as and when necessary, and pay the cost for, such maintenance of the Improvement as may be reasonably necessary to maintain the Improvement in good and aesthetic condition and repair. 6. INDEMNITY. The Owner shall indemnify, defend and hold the City and its employees, contractors, agents, representatives, elected and appointed officials, and attorneys harmless from any and all claims, damages, losses, costs and expenses, including attorneys' fees, arising from, based on, or related to the Owner being allowed to continue the encroaclunent of the Improvement on the Road, including, but not limited to, any claim asserted against the City as a result of the failure of the Owner to maintain the Improvement road in such a condition as to prevent against injury to persons or property. C:\windows\TEMP\Private Use of Public Property:2.doc Page :2 T 7. INSURANCE. Owner shall maintain a general liability insurance policy which provides coverage for damage to the property of others or injury to persons. Such coverage shall be on an occurrence basis shall include contractual liability coverage with respect to the indemnity obligation in Paragraph 6 above. Said policy shall contain a clause which provides the insurer will not change, non-renew, or materially change the policy without first providing the City thirty (30) days prior written notice. The Owner shall provide the City with a Certificate of Insurance for such coverage that specifically details the conditions in Paragraphs 6 and 8 of this Agreement. 8 . WAIVER OF CLAIMS. The Owner acknowledges City's ownership of the Road and knowingly and voluntarily waives and releases any and all claims against the City arising from, based on, or related to Owner's being permitted to maintain the encroaclU11ent of the Improvement on the Road as permitted by this Agreement, including but not limited to claims of abandonment, diminution in value, takings and contractual claims arising out of this Agreement, except any claims which are the result of the sole negligence or willful misconduct of the City or its employees or agents. The Owner acknowledges being represented by legal counsel in connection with this Agreement, and that the Owner has read and understands the terms of this Agreement. 9. CONDITION OF ROAD. The Owner acknowledges the City has made no representations or warranties regarding the condition of the Road or its suitability for the uses permitted by this Agreement. 10. BINDING EFFECT. Except as hereinafter provided, this Agreement shall run with the land and bind and inure to the benefit of the parties hereto and their respective heirs, successors and assigns. Notwithstanding anything to the contrary contained in this Agreement, the Owner and each successor owner of the Owner's Property shall be fully discharged and relieved of liability under this Agreement upon ceasing to own any interest in the Owner's Property; provided, however, that any obligations arising pursuant to Paragraph 4 of this Agreement shall not be discharged or r.eleased by the transfer of the Owner's or successor owner's, as the case may be, interest in the Owner's Property. 11. The Developer may not assign this Agreement without the prior written approval of the City Council, which approval will not be unreasonably withheld. No consent is required to assign this Agreement to an affiliate or subsidiary, as long as the Developer provides the City with written notice in advance of the assig1U11ent. However, if an assigmnent is made to an affiliate or subsidiary, all of the tenns and conditions required by this Agreement shall apply to the assignee. 12. ENTIRE AGREEMENT. This Agreement contains all the terms and conditions relating to the Road Improvements and replaces any oral agreements or other negotiations between the parties. No modifIcations of this Agreement shall be valid until they have been placed in writing and signed by all parties hereto. C:\windows\TEMP\Private Use of Public Property2.doc Page 3 13. RECORDING. The Owner shall cause this Agreement to be filed for record within 30 days of its execution by the Owner and the City. Evidence of filing shall be provided to the City within 30 days thereafter. CITY OF PRIOR LAKE By Frank Boyles, City Manager OWNER /1 ^-vQl/LHlL~ . .) I /- /~) '"1 .1 / L---4....-- t.....: STATE OF MINNESOTA ) )ss COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this _ day of , 2002, by Frank Boyles, City Manager of the City of Prior Lake, Minnesota, a municipal corporation on behalf of the corporation. NOTARY PUBLIC STATE OF MINNESOTA ) )ss COUNTY OF SCOTT ) oregoing 'nstrument was acknowledged before me tbis Ifi! day Of~, 2002, by . , E. V"P, (!.dO . This instrument was drafted by: ~~~IJ TARY PUBLIC ( Henningson & Snoxell, Ltd (SMG) 6160 Summit Drive, Sixth Floor Mim1eapolis, MN 55430 (763) 560-5700 C:\windows\ TEMP\Private Use of Public Property2.doc Page 4 Reviewed by City Attorney: Suesan L. Pace Halleland Lewis Nilan Sipkins & ]olmson Pillsbury Center - Suite 600 220 South Sixth Street Minneapolis MN 55402-4501 C:\windows\TEMP\Private Use of Public Property2.doc Page 5