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MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
NOVEMBER 18, 2002
4L
JANE KANSIER, PLANNING COORDINATOR
CONSIDER APPROVAL OF A RESOLUTION APPROVING
THE FINAL PLAT AND DEVELOPMENT CONTRACT FOR
THE DEVELOPMENT TO BE KNOWN AS DEERFIELD 10TH
History: On January 18,2000, the City Council adopted Resolution
00-08 approving the preliminary plat for Deerfield. The preliminary
plat consisted of l65 acres to be developed with 78 single family lots
and 462 townhouse lots, for a total of 540 units. The plat also includes
a 26 acre public park and lots for common area.
The final plat to be known as Deerfield 10th encompasses the fourth
phase of the Deerfield development. This final plat creates lots for a
total of 46 townhouse units. With the approval of these final plats,
there will be 130 units remaining to be platted in the Deerfield
development.
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.
Staff has reviewed the final plat and finds it to be in substantial
compliance with the approved preliminary plat. 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.
The Issues: The Development Contract specifies the required
improvements for this plat. Sanitary sewer and watermain trunk area
charges and collector street fees are outlined in the Contract. The
parkland dedication requirements for this plat were paid as part of the
original Development Contract. However, this subdivision will be
subject to the $850 per unit park support fee collected as part of the
building permit for each unit.
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16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
T
T
, i
FISCAL IMPACT:
ALTERNATIVES:
RECOMMENDED
MOTION:
REVIEWED BY:
Conclusion: A copy of the Development Contract is attached to this
report. Staff will be available to discuss the details of this Contract
with the Council. The Developer has reviewed the contract and has no
Issues.
Budf?et Impact: Approval of this final plat will allow construction of
new dwellings, which will contribute to the City's tax base. The
required development fees are deposited into the appropriate City
accounts.
The City Council has three alternatives:
l. Adopt the resolution approving the final plat and Development
Contract for Deerfield lOth.
2. Deny the resolution approving the final plat.
3. Defer this item and provide staff with specific direction.
Staff recommends Alternative #l. This requires the following motion:
1. A motion and second to adopt a resolution approving the final plat
and Development Contract for Deerfield lOth and authorizing the
Mayor and City M nager to sign the Development Contract.
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Page 2
RESOLUTION 02-XX
RESOLUTION OF THE PRIOR LAKE CITY COUNCIL APPROVING THE FINAL PLAT OF
"DEERFIELD 1 OTH" AND DEVELOPMENT CONTRACT AND SETTING FORTH CONDITIONS
TO BE MET PRIOR TO RELEASE OF THE FINAL PLAT.
MOTION BY:
SECOND BY:
WHEREAS: on January 18, 2000, the City Council approved the preliminary plat known as
Deerfield, subject to conditions identified by Resolution 00-08; and
WHEREAS: The City Council has found that the final plat of "Deerfield 1 oth" is in substantial
compliance with the approved preliminary plat for Deerfield; and
WHEREAS: The City Council has approved the final plat of "Deerfield 1 oth" ,
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PRIOR LAKE, MINNESOTA, that it should and hereby does require the following conditions to
be met, prior to release of, and recording of said plat:
1. The recitals set forth above are incorporated herein as if fully set forth.
2. The final plat of "Deerfield 1 oth" is approved subject to the conditions set forth in this
resolution.
3. The final plat of "Deerfield 1 oth" 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 must 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 must be submitted.
e. The developer must 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 February 18,
2003, 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 18th day of November, 2002.
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16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
r
YES NO
Haugen Haugen
Vacant Vacant
LeMair LeMair
Petersen Petersen
Zieska Zieska
Frank Boyles, City Manager
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Page 2
Deerfield 10th
Location Map
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DEVELOPMENT CONTRACT
DEERFIELD TENTH
PROJECT #02-42
This DEVELOPMENT CONTRACT is entered into this lSth day of November, 2002, by and
between the CITY OF PRIOR LAKE, a Minnesota municipal corporation ("City"), and D.R. Horton -
Minnesota, a Delaware Corporation (the "Developer"). 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 Deerfield Tenth (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.
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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. 00-08, dated January 18, 2000, approving the
Preliminary Plat for Deerfield.
4. PHASED 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 connection 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 of a 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 forth herein. If the plans vary from
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the written terms of this Development Contract, the more specific or stringent controls shall apply. The
Plans are:
Plan A --
Final Plat Dated September 5,2002 (Prepared by Paramount Engineering)
Plan B --
Final Grading, Development, and Erosion Control Planes) Dated June 12,
200l (Prepared by Paramount Engineering)
Plan C --
Tree Preservation and Replacement Plans Dated April 26, 2000 (Prepared
by Paramount Engineering)
Plan D --
Landscaping Plan Dated April 26, 2000 (Prepared by Paramount
Engineering)
Plan E --
One set of Plans and Specifications for Developer Installed Improvements
Dated October 3,2002 (prepared by Paramount Engineering)
Plan F --
Street Lighting Plan Dated
(Prepared by
)
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
I. Traffic Control Signs
J. Street Signs
K. Setting of Iron Monuments
L. Sidewalks and Trails
M. Landscaping
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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 Minnesota 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 storm sewer
facilities.
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9. DEVELOPER PROVIDED CONSTRUCTION SERVICES. 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 inverts. (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 certified by the
Minnesota Department of Transportation. The City Engineer has the sole discretion to determine if
additional testing is necessary. The cost of additional testing is to be paid by the Developer.
E. Lot comers and monuments.
10. BOULEVARD AND AREA RESTORATION The Developer shall seed or lay cultured
sod in all boulevards within thirty (30) d~ys, 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
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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 November 30, 2003, 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 Security 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 perform all work and inspections deemed
appropriate by the City in conjunction with the development of the Plat.
14. EROSION CONTROL. Prior to initiating site grading, the erosion control plan, Plan B,
shall be implemented by the Developer and inspected and approved by the City. The City may impose,
at no cost to the City, additional erosion control requirements if they are necessary to meet erosion
control objectives. All areas disturbed by the excavation and backfilling operations shall be reseeded
immediately after the completion of the work in that area. All seeded areas shall be mulched, and disc
anchored as necessary for seed retention. The parties recognize that time is of the essence in controlling
erosion. If the Developer does not comply with the erosion control plan and schedule or supplementary
conditions imposed by the City, the City may take such action as it deems appropriate to control erosion.
The City will endeavor to notify the Developer in advance of any proposed action, but failure of the
City to do so will not affect the Developer's and City's rights or obligations hereunder. The Developer
shall be solely responsible for any costs incurred by the City for erosion control measures. The
Developer shall fully reimburse the City for any cost incurred within ten (10) days of the date of the
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..
City's invoice. If the Developer does not reimburse the City for any cost the City incurred for such work
within ten (10) days, the City may, without further notice to the Developer, draw down the Irrevocable
Letter of Credit to pay any costs. No development, utility or street construction will be allowed unless
the Plat is in full compliance with the erosion control requirements. The notice provisions set out in
Paragraph 39 shall not apply to notifications to the Developer under this paragraph.
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.
16. GRADING PLAN.
A. The Plat shall be graded in accordance with the approved grading, development and
erosion control planes), (plan B). The plans and work shall conform to City of Prior Lake Public Works
Design Manual.
B. As-builts. Before the City releases the Grading Security, the Developer shall
provide the City with an as built grading plan and a certification by a registered land surveyor or engineer
that all ponds, swales, and ditches have been constructed on public easements or land owned by the City.
The as built plan shall include field verified elevations of the following: a) cross sections of ponds, b)
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location and elevations along all swales and ditches, and c) lot comers and house pads. The City may
withhold issuance of building permits until the approved certified grading plan is on file with the City and
all erosion control measures are in place as determined by the City Engineer.
17. OWNERSHIP OF DEVELOPER INSTALLED IMPROVEMENTS. Upon completion
of the Developer Installed Improvements required by this Development Contract and final written
acceptance by the City Engineer, the improvements lying within 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 same 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 Fish Point Road. 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
permits 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.
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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 ADMINISTRATION. 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
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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 MANAGEMENT FEE. The Developer shall pay a storm water
management fee of $12,831.00 prior to the City signing the final Plat. The amount was calculated as
follows: 4.36 acres at $2,943.00 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 $l5,260.00 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: 4.36 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 $6,450.00 for
collector street improvements prior to the City signing the final Plat. The amount was calculated as
follows: 4.36 acres at $l500.00 per acre.
27 PARK AND TRAIL DEDICATION. Parkland dedication requirements were satisfied by
dedication and cash payments as part of Deerfield. The development shall be subject to a park support
fee of $850.00 per residential unit. This fee will be collected at the time building permits are issued.
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
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.
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29. LANDSCAPING. Landscaping for this development shall be provided as shown on Plan
D. The landscaping requirements for the townhouse portion of the development and the tree
preservation requirements shall be provided by the developer. Subject to approved Plan D, the
Developer shall provide a fmancial guarantee based on an amount equal to 125 % of the estimated cost to
furnish and plant the required landscaping. The total amount of this guarantee is listed in Section 31 of
this Contract.
30. TREE PRESERVATION AND REPLACEMENT. This development is subject to the
Tree Replacement requirements as shown on approved Plan C. The required financial guarantee of
$347,383.37 was provided with the development contract for Deerfield. The security shall be
maintained for a least one (1) year after the date the last replacement tree has been planted. A t the end
of such year, the portion of the security equal to 125 % of the estimated cost of the replacement trees
which are alive and healthy may be released. Any portion of the security not entitled to be released
shall be maintained and shall secure the Developer I s obligation to remove and replant replacement trees
which are not alive or are unhealthy, and to replant missing trees. Upon completion of the replanting of
these trees, the entire security may be released.
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 $678,273.25. The amount of the Security
was calculated as follows:
DEVELOPER INSTALLED IMPROVEMENTS COSTS:
Sanitary Sewer
$
lI9,643.50
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Watermain
$
78,998.75
Storm Sewer
$
75,9l7.00
Streets/Sidewalks/Trails
$
170,859.35
Landscaping
$
97,200.00
Tree Preservation and Replacement
$
0.00
ESTIMATED DEVELOPER INSTALLED IMPROVEMENTS SUBTOTAL $
542,618.60
X 1.25
TOTAL FOR IRREVOCABLE LETTER OF CREDIT AMOUNT
$
678.273.25
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 3l, 2003.
Individual Security instruments may be for shorter terms provided they are replaced at least forty-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. If the 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$83,466.67 for City Development Fees. The amount of the cash fee was calculated as follows:
CITY DEVELOPMENT FEES:
City Administration Fee (4%)
$
2l,704.74
City Construction Observation (5%)
$
27,130.93
Storm Water Management Fee
$
l2,831.00
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Sanitary Sewer and Watermain Trunk Area Charges
$
15,260.00
City-Wide Collector Street Construction Charge
$
6,540.00
Park and Trail Dedication Fee (if in lieu ofland)
$
0.00
TOTAL CITY DEVELOPMENT FEES
$
83.466.67
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
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 construction.
34. WARRANTY. The Developer warrants all Developer Installed Improvements required to
be constructed 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 security. 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
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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 final acceptance of streets and
utilities. These standards are set out in the Public Works Design Manual.
35. OVERSIZING. 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 otherwise be required of the
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 $0.00 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,
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t
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 l12 percent (l.5%) per month or any part of
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. g471.425, 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 attorneys' fees.
B. Except as provided in Paragraphs 14 and l5 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 this 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;
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(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 performed 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
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 (lO) days written notice in accordance with the terms 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 terms 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 performance and/or observance of any obligation, agreement or covenant of
development under this Development Contract.
5. The City may suspend issuance of building permits and/or certificates of
occupancy on any of the lots, including those lots sold to third parties, in this Plat.
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'[
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 l-7 above shall be the sole responsibility of the Developer.
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 ofDefau1t; 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, or mailed to the Developer by certified mail at the following address:
D.R. Horton, 20860 Kenbridge Court, Suite 100, Lakeville, MN, 55044. 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-l7l4. 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, 55402-450l.
40. INDEMNIFICATION. 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,
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demands, actions, suits, proceedings, liens, losses, costs, expenses, obligations, liabilities, damages,
recoveries, and deficiencies, including interest, penalties, and attorneys' 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
Council, agents, employees, attorneys and representatives does not extend to any willful or intentional
misconduct on the part of any of these individuals.
41. NO THIRD PARTY RECOURSE. The City and Developer agree that third parties 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 $l,OOO,OOO 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.
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r
43. RECORDING DEVELOPMENT CONTRACT. This Development Contract shall run
with the land. The Developer, at its 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
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. SPECIAL PROVISIONS. The following special provlSlons 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 m electronic format. 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 represents to the City that the Plat
complies 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
Plat does not comply, the City may, at its option, refuse to allow construction or development work in the
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Page 19
Plat until the Developer does comply. Upon the City's demand, the Developer shall cease work until there
is compliance.
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 ofthe City CounciL 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 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.
F. J urisdicition. This Development Contract shall be governed by the laws of the
State of Minnesota.
CITY OF PRIOR LAKE
By:
(SEAL) Jack G. Haugen, Mayor
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r
By:
Frank Boyles, City Manager
DEVELOPER:
By:
Its:
By:
Its:
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 Minnesota
municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City
Council.
NOTARY PUBLIC
STATEOFMINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this
day of
,20_,
by
NOTARY PUBLIC
DRAFTED BY:
City of Prior Lake
16200 Eagle Creek A venue SE
Prior Lake, Minnesota 55372
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Page 21
FEE OWNER CONSENT
TO
DEVELOPMENT CONTRACT
, fee owners of all or part of
the subject property, the development of which is governed by the foregoing Development Contract, affirm
and consent to the provisions thereof and agree to be bound by the provisions as the same may apply to that
portion of the subject property owned by them.
Dated this _ day of
,20_.
,-
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
16200 Eagle Creek Avenue SE
Prior Lake, Minnesota 55372
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Page 22
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MORTGAGEE CONSENT
TO
DEVELOPMENT CONTRACT
, which holds a mortgage on
the subject property, the development of which is governed by the foregoing Development Contract, agrees
that the Development Contract shall remain in full force and effect even if it forecloses on its mortgage.
Dated this _ day of
,20_.
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
16200 Eagle Creek Avenue SE
Prior Lake, Minnesota 55372
1:\02files\02subdivisions\02final plats\deerfield 1 Oth\development contract.doc
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Page 23
CONTRACT PURCHASER CONSENT
TO
DEVELOPMENT CONTRACT
, 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 _ day of
,20_.
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
16200 Eagle Creek Avenue SE
Prior Lake, Minnesota 55372
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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 banlc
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 fortyfive (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, amend<<i,
amplified, or limited 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:\02fi1es\02subdivisions\02final plats\deerfield 10th\development contract.doc
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Page 28
If
..
EXHIBIT "C"
SAMPLE CERTIFICATE OF INSURANCE
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.
Effective Date:
Expiration Date:
Insurance Company:
COVERAGE - Workers' Compensation, Statutory.
GENERAL LIABILITY:
Policy No.
Effective Date:
Expiration 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:\02files\02subdivisions\02final plats\deerfield 10th\development contract.doc
1111102
Page 29
Operations of Contractor: YES
Operations of Sub-Contractor (Contingent): YES
Does Personal Injury Include Claims Related to Employment? YES
Completed OperationslProducts: YES
Contractual Liability (Broad Form): YES
Governmental Immunity is Waived: YES
Property Damage Liability Includes:
Damage Due to Blasting YES
Damage Due to Collapse YES
Damage Due to Underground Facilities YES
Broad Form Property Damage YES
AUTOMOBILE LIABILITY:
Policy No.
Effective Date:
Expiration Date:
Insurance Company:
(X) 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 DEDUCTffiLES 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 COMPANY WILL MAIL THIRTY (30) DAYS WRITTEN NOTICE TO
THE PARTIES TO WHOM THIS CERTIFICATE IS ISSUED.
Dated at
On
BY:
Authorized Insurance Representative
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r
EXHIBIT "D"
TO
DEVELOPMENT CONTRACT
(Oversizing Calculations for Developer Installed Improvements)
A. OVERSIZING
There is no oversizing with this contract.
1:\02files\02subdivisions\02final plats\deerfield 10th\development contract.doc
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Page 3 I
.
. .
EXHIBIT E
.
..
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EXHIBIT E
BID PROPOSAL
DEERFIELD 10TH ADDITION (TWIN HOMES)
SCHEDULE B - W A TERMAIN
ITEM ESTIMA TED ~
NO. DESCRIPTION UNIT QUANTITY PRICE AMOUNT
9'<6;1
1 8" DIP L.F. jr 1419. -1 (Pc U 2"'tr9-f&JD l.b
.
, +zt', I~OO
2 6" DIP L.F. 4t~o JZ,oO ~O~,Do . \'
3 HYDRANT W N AL VE EA. 5 2./ (1).CO 10, ID)(tiJ
<<
6" GAr:E-VAf::VE EA::--~""._...'"-I-----'-' ~7)()i,Df}--.~7X) tile- /.1\
4 (f
'11'
5 8" GATE VALVE EA. 2 ....\ (P[t).cU +-Z~ I Co \ Sou {-',i",
6 FITTINGS LBS. 2660 z..rD h~ Sl)lO{)
7 1" CORPORATION EA. 46 51) I 00 ~3()O IOD
8 1" CURB STOP & BOX EA. 46 /ODtOO 46Jo /00
9 1" COPPER PIPE L.F. 1865 1t..VlJ ZZ-. :;,80,oi
,
10 CONNECT TO EXISTING EA. 3 I ocV ,OJ 3~6() ,00
.;-..'
SUBTOT AL SCHEDULE B - W A TERMAlN
-/,)'
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-
EXHIBIT E
r
EXHIBIT- E
DEERFIELD 10TH ADDITION (TWIN HOMES)
SCHEDULE D - STREETS
ITEM ESTIMATED
NO. DESCRIPTION UNIT QUANTITY PRICE AMOUNT
1 D-412 CURB & GUTTER L.F. 3420 7. lD Z.4-,(o~rCD
.
2 B-618 CURB & GUTTER L.F. 190 6.)1:> (rorf',oD
3 ADJUST MH CASTINGS EA. 9 380. oJ 1t(-20,DD
4 BIT. BASE, TYPE 31 (2-1/2") S.Y. 6295 3.SB 22-, )3(;, dO
.
5 BIT. WEAR, TYPE 41 (1 ~") S.Y. 6295 2.C,O "'r 3fo 7.00
6 BIT. TACK COAT GAL. 320 I. 'OS 5'12.00
7 STREET SIGNS & BARICADES L.S. 1 loOD,fJu I Oou, 00
8 CONDUIT CROSSINGS EA. 6 z.~-VtOV I ~O. 0 D
9 CLASS 5 AGG. BASE (6") S.Y. 7065 3.~ 7,7; Z~. 2:)'
10 SOD (3' BOC) S.Y. 1200 2, ')1) 3. ceo, co
,
11 GRANULAR BORROW (2') S.Y. 7460 C(;Z)' (,~ (t;5.C{)
SUBTOTAL SCHEDULED-STREETS 170 I 659', ~ S-
.
TOTALS SCHEDULE A JJ 9, '41,~U
SCHEDULE B ;),'74-lJz:J
SCHEDULE C i:{, 9/7, co
,
SCHEDULE D /701 8S9. 3::- {t.
GRAND TOTAL . 4#: 3b2, 3~
I
EXHIBIT E
D. R. HORTON INC., - MINNESOTA
20860 Kenbridge Ct., Suite 100
Lakeville, lYfN 55044
September 26, 2002
CITY OF PRIOR LAKE
Attn: Jane Kansier
l6200 Eagle Creek Ave. S.E.
Prior Lake, MN 55372
SUBJECT: Landscaping cost Deerfield 10th Addition
Dear Ms.Kansier:
D. R. Horton has entered into a contract for completion of this work with Great Northern Landscaping.
This contract is on a per unit price to complete the work as shown on the approved plans.
The cost per unit in the 10th addition is S2000.00. This per unit cost equals a total of $92,000.00 for
completion of the unit landscaping in the 9th addition. In addition to the unit landscaping there is some
entry landscaping on Fish Point Road. The entry landscaping is estimated to cost $5200.00.
If you have any questions please feel free to contact me.
^ j I", U A\
. - v')vv ~;
Mike Suel
Proj eet Manager
cc: Eric Gamradt
t
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: I" = 800'; I" = 200'; and
one reduction at no scale which fits onto an 81/2" x ll" 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 County within 90 days from the
date of final plat approval. Failure to record the documents by February l8, 2003, will render the
final plat null and void.
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