HomeMy WebLinkAbout4B - Cardinal Ridge 2nd Addn.
CONSENT AGENDA#:
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
BACKGROUND:
DISCUSSION:
.........
4(!)
JOHN WINGARD, ASSISTANT CITY ENGINEER
CONSIDER APPROVAL OF AMENDMENT #1 TO THE
DEVELOPER'S AGREEMENT WITH GOOD VALUE
HOMES FOR CARDINAL RIDGE 2ND ADDITION
APRIL 1, 1996
The purpose of this Agenda. item is to consider approval of
Amendment #1 to the Contract for Development of Land in
the City of Prior Lake with Good Value Homes for Cardinal
Ridge 2nd Addition development.
The City of Prior Lake entered into a Developer's Agreement
with Good Value Homes for Cardinal Ridge 2nd Addition on
the 21st of March 1994.
At that time, it was the City's practice to require 25% of the
contract amount for the construction of public utilities in the
form of a Letter of Credit, during the warranty period of the
project. This provides security for the condition of the
streets and utilities during the warranty period. If the streets
or utilities fail during the warranty period, and the contractor
does not correct the failure, the City may draw on the Letter
of Credit to the amount needed to correct the failure.
We have since amended the policy to allow the developer
the option of choosing to provide a Letter of Credit for 5% of
the contract amount and a performance bond for 100% of
the amount. The developer's contractor, Enebak
Construction Company, has submitted the one year
Maintenance Bond to the City. A copy is included.
Good Value Homes is requesting an amendment to the
Developer's Agreement to allow them to exercise this option.
Since this option is available to all developers now, this is a
reasonable request. Attached is Amendment #1 to the
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
T r
ALTERNATIVES:
RECOMMENDA TION:
ACTION REQUIRED:
G:\agenda96\cr2amend
Developer's Agreement which would allow the developer to
choose this option.
The developer's contractor, Enebak Construction Company,
has also provided a Waiver of Mechanic's Lien Rights
certifying that full and final payment for all labor, skill and
material has been furnished for Cardinal Ridge 2nd Addition.
Given our experience with The Wilds, we will be asking for
lien waivers for future projects.
The alternatives are as follows:
1. Make a motion and second as part of the Consent
Agenda to approve Amendment #1 to the Developer's
Agreement.
2. Approve this item with specific amendments.
3. Deny this item for specific reasons.
Alternative No.1.
.,
Make a motion and second as part of the Consent Agenda
to approve Amendment #1 to the Developer's Agreement.
2
T T
eDEB8H conSTRUCTion COlllPSDV
P.O. Box 458 . Northfield. Minnesota 55057 . 507-645-8962 612-333-1307
December 11, 1995
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City of Prior Lake
P.O. Box 359
Prior Lake, MN 55372
Attention: Mr. John Wingard ~
Assistant City Engineer
....-
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Regarding: Cardinal Ridge 2nd
Maintenance Bond
Jear Mr. Wingard:
~nclosed is the one-year Maintenance Bond which you requested for
:he Cardinal Ridge 2nd utilities and street construction.
!f you have any questions, please give me a call.
T7ank you. {
f\~01~,ltJ CL
Kevin W. ~achfeld
Project Manager
. -j
KWH/sk
Enclosure
c: Passe Engineering, Inc.
"An Equal Opportunity Employer"
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.
~St?dul
Properly & lJabdlly
Insurance
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ST. PAUL fIRE AND MARINE
INSURANCE COMPANY
St. Paul, Minnesota
A Capital Srock Compan~'
MAlNTENANCE BOND
Bond No.
JRJ064
KNOW ALL MEN BY THESE PRESENTS, That we, ENEBAK CONSTRUCTION COMPANY.
a Minnesota Corporation
P.O. Box 458. Northfield. Minnesota 55057 (hereinafter called t-he "Principal") as Principal, and the
ST. PAUL FIRE A."l'D MARINE INSURA.l'\TCE COMPANY, of the City of St. Paul, Minnesota, a corporation duly or-
ganized under the laws of the State of Minnesota, and duiy licensed to transact business in the State of
Minnesota
(hereinafter called the "Surety"), as Surety are held and firmly bound
City of Prior Lake. P.O. Box 359. Prior Lake. MN 55372
THREE HUNDRED FIFTY-FIVE THOUSAND. SIX HUNDRED
(hereinafter called the "Obligee"), in the sum of THIRTY-EIGHT AND 60/100---- ($ 355.638.60----)
for the payment of which are well and truly to be made, we, the said Principal and the said Surety, bind ourselves, our
heirs, executors, administrators, successors and assigns, jointly and severally, fumly by these presents.
unto
SIGNED and sealed this ......J.t;~......... day of .........~~~.'7~~~.................. , 19...??. .
THE CO~roITION OF THIS OBLIGATION is such, that
Good Value Homes. Inc.
WHEREAS, the said Principal has heretofore entered into a contract with icIJ.dtJ'ri1J.r/,dddated March 25.
19 ~, for Cardinal Ridge 2nd Addition. Sanitary Sewer. WH. Storm Sewer & Street Constr.
PEl Project #93-39. Prior Lake/MN
WHEREAS, the obligee has requested that said work be guaranteed against failure because of defective workmanship
or material, performed or furnished by said principal for a period of One (1)
acceptance, normal wear and tear excepted. . j
years from date of completion and
NOW THEREFORE, if the said Principal shall indemnify and save harmless the obligee against loss or damage oc-
casioned directly by the failure of said materials or workmanship, then this obligation to be void, otherwise to re-
main in full force and effect. It is understood, however, that this bond shall not include loss or damage by failure
of workmanship or materials due to hurricane, cyclone, tornado, earthquake, volcanic eruption or any similar dis-
turbance of nature, nor military, naval or usurped power, insurrection, riot or civil commotion, nor any act of God.
It is further understood and agreed that the totalliability of the surety under this bond shall in no event exceed the
sum of THREE HUNDRED FIFTY-FIVE THOUSAND. SIX HUNDRED THIRTY-EIGHT AND 60/100--
($355>>638.60)
Dollars.
No right of action shall accrue upon or by reason of this obligation, to or for the use or benefit of any person, fum
or corporation, other than the obligee herein named.
ENEBAK CONSTRUCTION COMPANY
By: ~Zai(
Robert H. Enebak>> President
17818 Rev. 5-79 Printed In U.S.A.
CECOMPANY
A ttorney-in-F act
ACKNOWL~DGM~NT OF PRINCIPAL (Corporation)
, 00 5-Aa:now\eoclcmcnt br Cor'l)Orall0n or A,,~uci.tlon. (Rf"""1.M'd 1'':7)
MilIer.D.vi. Co.. ~!lnne~t'Oli.. Minn.
~tatc of .....:MJ:1...l1\ESo.r:..A..........................tss. . On this ............J.~~.?............day oj.........P.~.~=~.=~........................19 ......?.~.
County of....~~~...........................) befcrrc me appeared .........g..??.~.!:.~...g.:....~?:~~.~~......................................................
to m,e personally 7cnou:n, wno, bcin~ by m.e. du.ly SlC01"'n, did. say tha.t............he....................;.$..............................the............
President
......................................n....._............................................................-..-.-.........-..........................-........-............................................................................................................
.: ENEBAK CONSTRUCTION COMPANY..
o I .............................................................................................-... .......-.......................-................................. .......................... ........... ......., a c 07'pora::wn,
tha.t the seal. afji;;ed to the joregoing ins"nt,ment is the corporate seaL of <;aUl. cOI7)oration,.......................................
................................................_......._.........................._........................__..........._.......__........._........................_.....................n.....................................................................
Cl! no """-1. fI() ......:.:..t.. &l1d "t~iKe nut &Oo~ a.~ to c:.oi1\or&Le ~~I;
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ACKNOWLEDGMENT OF SURETY
. ~tatt of _..~~~~..._...._--.......l ss. On thi..L_._........__L~.h.,........;da.y of ....__..P~~~uM?~.!.................._...19 .......9...5
County OJ....~~...........................J 'oefcrre me appca-red ._...........~.~..J?S:9.!:;;....~gg;hg.~.9.g...............................................
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to m..e personally 7cnou:n, WhO, bCLn~ lAj me du.i.y SlCOr72:., . say t a"............ne....................."................................../U.............
................._.................~...._.._......_.._...............................':~:s:-'::S2..~~y.:.~:.:.~!:._._..............._................_......................................................................
o t .._.........._.._.._............~!..:._~~~....~.~.~_..~_~NE_.!NSURANC~._~Q~~............_._...._....................., a C07TJorati.on,
tha.~ the sed aj,r...x/;".c, to the joregoin,g i.nstnt-m.ent is the C07"p07"ate .;eal of l1a.id cOT7}oration,.......................................
................_......................-...--.-......--........................._...,n___.._.___..__..___...____..............__......._.................................-................................-................n.........
and. that said instrum,ent was e.xccu.ted in bel! alt of sai.d. C07-porati.on
_.._.___..._._Dire.ct,Q;;:s..................; and that $au:L_~' S n
acknow'led2ed sa.id i.n.stnLm.ent to be the fru act an
f i.ts Board oj
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'IV'-.''"Io,~. .r..'.:...v.J..P.,.....,r.~~
Notary Pu.o~ic sey . Cou.nty, ...._..~.Q4.~...............
.. . January 31, 2000 .
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The StRiul
CERTIFmO
COPY NO.
Surecy
ST. PAUL FIRE AND MARINE INSURANCE COMPANY
385 Washington Street, St. Paul, Minnesota 55102
CERTIFICATE OF
AUTHORITY NO.
For verification of the authenticity of this Power of Attorney, you may telephone toll free 1-800-421-3880 and ask for
the Power of Attorney Clerk. Please refer to the Certificate of Authority No. and the named individual(sl,
...., /
F-1l771 GENERAL POWER OF ATTORNEY. CERTIFIED COPY
(Original on File at Home Office of Company. See Certification.)
K,'10W ALL MEN BY THESE PRESENTS: That St. Paul Fire and Marine Insurance Company, a corporation organized and existing under the laws of the State
of Minnesota. having its principal office in the City of St. Paul. Minnesota, does hereby constitute and appoint:
Bruce N. Te1ander I R. W. Frank, John P. Martinsen, Gary S. Soderberg I R. Scott
Fgginton I I:Onald R. Olson I Dennis J. Linder, John E. Tauer I Mary L. Olarles,
individually, Minneapolis I Minnesota
its true and lawful attorney(s)-in-fact to execute. seal and deliver for and on its behalf as surety. any and all bonds and undertakings. recognizances, contracts of
indemnity and other writings obligatory in the nature thereof. which are or may be allowed. required or permitted by law. statute. rule, regulation, contract or
otherwise.
NO!' 'IO EXCEED IN PENALTY 'lEE SUM OF FIFI'Y MILLION DOI..IARS ($50,000 1000) EAal
and the execution of all such instrument(s) in pursuance of these presents. shall be as binding upon said St. Paul Fire and Marine Insurance Company, as fully and
amply, to all intents and purposes, as if the same had been duly executed and acknowledged by its regularly elected officers at its principal office.
This Power of Attorney is executed. and may be certified to and may be revoked. pursuant to and by authority of Article V,-Section 6(C). of the By-Laws adopted by
the Shareholders of ST. PAUL FIRE AND MARINE INSURANCE COMPANY at a meeting called and held on the 28th day of April. 1978. of which the following
is a true transcript of said Section 6 (C):
"'The President or any Vice President. Assistant Vice President, Secretary or Service Center General Manager shall have power and authority
(1) To appoint Attorneys-in-fact. and to authorize them to execute on behalf of the Company, and attach the Seal of the Company thereto, bonds and
undertakings, recognizances, contracts of indemnity and other writings obligatory in the nature thereof, and
(2) To appoint special Attorneys-in-fact, who are hereby authorized to certify to copies of any power-of-attorney issued in pursuance of this section
and/or any of the By-Laws of the Company. and
(3) To remove. at any time. any such Attorney-in-fact or Special Attorney-in-fact and revoke the authority given him,"
Further. this Power of Attorney is signed and sealed by facsimile pursuant to resolution of the Board of Directors of said Company adopted at a meeting duly called and
held on the 5th day of May. 1959. of which the following is a true excerpt:
"Now therefore the signatures of such officers and the seal of the Company may be affixed to any such power of attorney or any certificate relating thereto by
facsimile, and any such power of anorney or certificate bearing such facsimile signatures or facsimile seal shall be valid and binding upon the Company and
any such power so executed and certified by facsimile signatures and facsimile seal shall be valid and binding upon the Company in the future with respect to
any bond or undertaking to which it is attached,"
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IN TESTIMONY WHEREOF. St. Paul Fire and Marine Insurance Company has caused this instrument to be signed and its corporate
seal to be affixed by its authorized officer. this 30th day of November. A.D. 1990.
ST. PAUL FIRE AND MARINE INSURANCE COMPANY
~~9~\V---
MICHAEL B. KEEG~. Secretary
STATE OF NEW JERSEY }ss.
County of Somerset
On this 1st day of February . 19 94 . before me came the individual who executed the preceding instrument. to me
personally known. and. being by me duly sworn. said that he/she is the therein described and authori.,d.officer of St. Paul Fire and Marine Insurance Company;
that the seal affixed to said instrument is the Corporate Seal of said Company; that the said Corporate Seal and hislher signature were duly affixed by order of the
Board of Directors of said Company.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my Official Seal. at the township of Bedminster, New Jersey. the
day and year first above written.
LINDA S S, Notary Public. Middlesex. NJ
My Commission Expires December 16. 1996
CERTIFICATION
I, the undersigned officer of St. Paul Fire and Marine Insurance Company, do hereby certify that I have compared the foregoing copy of the Power of Attorney and
affidavit. and the copy of the Section of the By-Laws of said Company as set forth in said Power of Attorney, with the ORIGINALS ON FILE IN THE HOME
OFFICE OF SAID COMPANY, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not
been revoked and is now in full force and effect. ~j. .' J 1-
IN TESTIMONY WHEREOF,! ba~ _"~,~ my baml <hi, ~ I. w.~
7th7 day of December . 19~. MIC~RSON, Asst. Secretary
Only a certified copy of Power of Attorney bearing the Certificate of Authority No. printed in red on the upper right comer is binding. Photocopies, carbon copies or
other reproductions of this document are invalid and not binding upon the Company,
ANY INSTRUMENT ISSUED IN EXCESS OF THE PENALTY AMOUNT STATED ABOVE IS TOTALLY VOID AND WITHOUT ANY VALIDITY.
29550 Rev, 1-95 Printed in U.S.A.
it CI.! li! t"~ 1 4 tall
RECEIPT AND WAIVER OF MECHANIC'S LIEN RIGHTS
PRIOR LAKE, MINNESOTA
Dated:
IZ/2.<t/C1S
,~~9ge.
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t IC-
"'- ~ \ V\G. \
f 0..'( Y'l\e"/\.1"
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The undersigned hereby acknowledges receipt of the sum $
CHECK ONLY ONE
1.
o
as partial payment for labor, skill and material furnished
2. 0
as payment for all labor, skill and material furnished or to be furnished (except the
sum of $ retainage or holdback)
3. 'f
as full and final payment for all labor, skill and material furnished or to be
furnished to the following described real property: Cardinal Ridge 2nd Addition
and for value received hereby waives all rights acquired by the undersigned to file or record
mechanic's liens against said real property for labor, skill or material furnished to said real
property (only for the amount paid if Box 1 is checked, and except for retainage shown if Box 2
is checked). The undersigned affirms that all material furnished by the undersigned has been
paid for, and all subcontractors employed by the undersigned have been paid in full, EXCEPT:
NOTE: If this instrument is
executedbyacorporatibn, it
... must be signed by an
.. officer,andifexecuted by a
....partnership;itmust be
I.....signed..by...a..partner;
'- T~"-
sworn to before
day of
,1996.
:>!hiJ.uht (I,. ul'r (IV
Notary Public
Subscribed and
me this 11 th
March
THIS INSTRUMENT DRAFTED BY:
Popham, Haik, Schnobrich & Kaufman, Ltd.
Suite 3300, 222 South Ninth Street
Minneapolis, MN 55402
(612) 333-4800
_'iJ"- SHARON C. WAGNER
. NOrMY "-'C -....sorA
~ MY COMMISSION EXPIRES
JANUAlY 31, 2000
ClULIEN.DOC
~- 11
.
A1\1ENDMENT NO.1
TO
CONTR~CT FOR DEVELOPlVIENT OF
LAND IN THE CITY OF PRIOR LAKE, ~nNNESOTA
THIS AJ.vIENDiVlENT NO.1 made and entered into as of the b1 day of April. 1996,
by and between the City of Prior Lake, a municipal corporation organized under the laws of the
State of Minnesota (hereinafter "City") and Good Value Homes, Inc., a Minnesota corporation
(hereinafter '.Developer").
WITNESSETH:
WHEREAS, Deveioper and City entered into a Contract for Development of Land in the
City of Prior Lake, Minnesota as of the 21th day of March, 1994; and
WHEREAS, the City has granted preiiminary plat approval and final piat approval to
Cardinal Ridge 2nd AddiLion on the condition that, among other things, Deveioper enter into this
Amendment to the Agreemem to provide for instailation of Developer improvements and ail
other improvements hereafter described all on the terms and conditions hereafter set forth; and
\
\-VHEREAS, paragraph 12 of the Deveioper' s Agreemem amhorizes amendmems to the
Developer's Agreement by a 'vVTinen instrument executed in accordance with the same
procedures and formalities as the original Deveioper's Agreement: and
WHEREAS, CiLy and Developer believe it is in their besL imerests to amend the
Developer's Agreement as hereinafter seL fonh.
NOW THEREFORE, in consideration of these pre~s~s and of the mutual promises and
7
conditions hereinafter contained, the Developer's Agreemem is hereby amended as foilows:
The foilowing exhibits are anached hereto and by reference made a pan of this Agreement:
Exhibit G(l) -First Completion Date, Performance/Warranty Bond
Exhibit G(2) -Second Completion Date, Performance/Warranty Bond
C. Paragraph 7 entitled "Acceptance of Subdivision and Developer Improvements" shall
be amended in its entirety to read after said amendment as follows:
7. ACCEPTANCE OF SUBDIVISION AND DEVELOPER IMPROVEl'tlENTS.
City will accept the Subdivision after it has been completed in accordance with the
provisions of this Agreement, the poiicies and ordinances of City, as City may
DA.\4ENClU.DOC
adopt from time to time, and all local, state and federal laws and regulations.
Developer shall furnish certificates of completion for the completed Subdivision
certifying that the work has been completed in accordance with the terms of this
Agreement and shall also furnish mylar "as-built" reproducibles for all phases of
construction included in this Agreement. Prior to acceptance of the completed
Subdivision by the City Engineer, Developer must furnish to City a Letter of Credit
guaranteeing satisfactory performance of the Developer Improvements in an amount
equal to 25% of the original cost of the Developer Improvements. The 25% Letter
of Credit guarantee amount can be reduced upon the following conditions:
A. The Letter of Credit guaranteeing satisfactory performance of the Developer
Improvements can be reduced to 5% of the original cost of the Developer
Improvements to be completed by the First Completion Date plus 125% of the
original cost of Developer Improvements to be completed by the Second
Completion Date, after acceptance of all Developer Improvements to be
completed by the First Completion Date by the City Engineer in writing, and
by providing the City a PerformancelViarranty Bond from the Developer and
its contractors in an amount equal to the cost of the Developer Improvements to
be completed by the First Completion Date. All punch list items related to the
First Completion Date must be completed before a reduction in security will be
considered.
B. The Lener of Credit guaranteeing satisfactory performance of the Developer
Improvements can be reduced to 5% of the original cost of the Developer
Improvements after acceptance of all Developer Improvements by the City
Engineer in writing and by providing the City a PerformancelWarranty Bond
from the Developer and its contractors in an amount equal to the original cost
of the improvements which shall be in force for one (1) year (the "Warranty
Period") following acceptance of all Pequired improvements and shall
guarantee satisfactory performance of such improvements. The Warranty
Period shall begin effective the date that the City Engineer accepts all of the
completed improvements, in writing, including the mylar "as-built"
reproducibles for all phases of construction included in this Agreement.
D. Except as amended pursuant to this Amendment No. 1 to the Developer's
Agreement, all other terms, conditions, mutual promises, and undertakings as set
forth in the Contract for Development of Land in the City of Prior Lake, Minnesota
entered into as of the lls! day of March, 1994 shall remain in full force and effect.
DAMENClU.OOC
T
I
IN \VITNESS WHEREOF, City and Deveioper have caused this A.mendment No. i to be
duly executed on the day and year first above ""Titten. , ft.
Approved by the City Council on the ~day of 1?\~'-!. , 199t
A.PPROVED AS TO FORiy!:
DEY~LOPER:
By .~bfL-
Attorney
By
Its
CITY OF PRlOR LAKE:
Bv
..
Its Mayor
By
Its City Manager
DAMENClU.DOC
i
J
. 7
STATE OF iYIINNESOTA }
COu"NTY OF H/L~
} 55:
The foregoing instrument was ack."1owledged before me this Y' day of~tLt..t a..:~
. ' 199t, by Good Value Homes, Inc., a Minnesota corporation, on behalf of said
corporahon.
mal it >-.lk;:J
Notary Publ1c .
. E E NELSON \
~e MARlpU6Lic - MINN~SQiA
NOiAR'I QUNT'<
ANO~i~s Jan. 31 2000.
. M1 comm. ......
.
CO c:-iTY 0 F
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} 55:
1
f
STATE OF :.vII~NESOT.-\
Tbe foregoing instrument was acknowledged before me this day of
l 199c, by Lydia Andren and Frank Boyles, to me personally known, being each
by me duly sworn, d1'd say that they are the :\-fayor and City Manager, respectively, of the City of
Prior Lake, a Minnesota municipal corporation named in the foregoing instrument; and that said
instrument was signed on behalf of the municipal corporation: ahd ack."1owiedged said instnunent
to be the free act and deed of said municipal corporation.
Notary Public
OAMENClU.DOC
- -,...--"...-.-.".--.-.", .,-..-"....---... .".".._."-,,...,-,....._~,~---------,-~~ ....
.
EXIDBIT G (1)
FIRST CO~[PLETION DATE
Bond No.
PERFORl\1Al~CE^,V ARR-\NTY BOND
Ki"fOW"N BY ALL PERSONS BY THESE PRESENTS, that we
(Principal) and
(Surety) are held and firmly
bound unto the (Obligee), in the amount of_
and -.-..JIOO dollars ($ ) for payment
whereof Principal and Surety jointly and severally bind themselves and their respective heirs,
successors, assigns and legal representatives firmly by these presents.
WnEREAS, Principal has heretofore deposited with the City of Prior La.tee. Letter of Credit to
guara.'1ty :he completion of payment for and maintenance of the public improvements as set forth
in the Developer's .-\greement dated betvveen Principal and
Obligee tor including, but not limited to,
Sanitary Sewer, Watermain, Storm Se'.ver and Streets (the Public Improvemems); and
WnEREAS, the construction of the Public Improvements associated with the First Completion
Date was completed and the Principal received acceptance on and the
Principal has requested the Obligee to reduce the Letters of Credit; and
. -
WHEREAS; the Obligee is willing to reduce the Letters of Credit only if they are replaced by a
Performance/Warranty Bond in an amount equal to the original cost of the completed
improvements, in the penal sum of $ to guaranty performance of the Principal's
obligations as set forth in the Developer's Agreement.
NOW THEREFORE, if the Principal shall for and within the period of time from and after the
Actual First Completion Date and through the acceptance of the subdivision and developer
improvements as set forth in the Developer's Agreement and through the Warranty Period; (1)
maintain the Public Improvements, (2) repair any damage to the Public Improvements caused by
the Principal, its agents, servants, employees, successors or assigns, or any subcontractor hired
by such contractor, (3) repair or replace any defective workmanship or material in the Public
Improvements, and (4) make good and protect the Obligee against the results of any defective
workmanship or materials appearing to have been incorporated in any part of the Public
Improvements which shall have appeared or been discovered within the period of time after the
First Completion Date, and through the acceptance of the subdivision and Developer
DAMalCllOOC
Improvements as set forth in the Developer's Agreement and through the Warranty Period, and
cover all obligations including attorney fees, administrative costs, and all Developer obligations
for payment of contractors, subcontractors and suppliers/materialmen as required by the
Developer's Agreement, then this obligation shall be null and void; otherwise, to remain in full
force and effect.
For purpose of this Performance/Warranty Bond. Principal and Surety agree that in the event that
any Public Improvements are damaged, the burden shall be on the Principal to show that such
damage was not caused by Principal, its agents, servants, employees, successors or assigns or by
any contractor hired by Principal. its agents, servants, employees, successors or assigns, or any
subcontractor hired by such contractor;
Any suit under this Bond must be instituted before the expiration date of tvlo (2) years after the
Completion Date;
No right of action shall accrue under this Bond to or for the use of any person or corporation
other than the Obligee, its successors or legal representatives.
Any notice required hereunder shall be deemed properly served when deposited in the U.S. MaiL
cenified, postage prepaid. addressed La any party at its address hereinafter set fonh.
SIGNED, SE.-\LED .--\)lD DATED ~:Us
day of
, 1 9 ---'-
In the presence of:
Principal
By:
. j
Surety
By:
Attorney-in-Fact
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EXHIBIT G (2)
SECOMTI COi\1PLETION DATE
Bond No.
PERFORlvL\J.'fCEAVARRA1'fTY BOND
K.1"\TOWN BY ALL PERSONS BY THESE PRESENTS, that we
(Principal) and
(Surety) are held and firmly
bound unto the (Obligee), in the amount of_
and ~100 dollars (S ) for payment
whereof Principal and Surety jointly and severally bind themselves and their respective heirs,
successors, assigns and legal representatives fInnly by these presents.
WhEREAS, Principal has heretOfore deposited with the City of Prior Lake, Letter of Credit to
guaranty rhe complerion of payment for md maimeilance of rhe public improvements as set forth
in the Developer's Agreement dated ber',veen Principal and
Obligee for including, but nm limited to.
Sanitary Sewer. \Vatermain. Storm Sewer and Streets (the Public Improvements): and
\vnEREAS, the construction of the Public Improvements associated with the Second
Completion Date was completed and the Principal received Final Acceptance on
and the Principal has requested the Obligee to reduce the Letters of Credit; and
WhEREAS; the Obligee is willing to reduce the Letters of c-redit only if they are replaced by a
Performance/Warranty Bond in m amount equal to the original cost of the completed
improvements, in the penal sum of S to guaranty performance of the Principal's
obligations as set forth in the Developer's Agreement.
NOW THEREFORE, if the Principal shall for and within the period of time from and after the
acceptance of the subdivision and developer improvements as set forth in the Developer's
Agreement and through the Warranty Period; (1) maintain the Public Improvements, (2) repair
any damage to the Public Improvements caused by the Principal, its agents, servants, employees,
successors or assigns, or any subcontractor hired by such contractor, (3) repair or replace any
defective workmanship or material in the Public Improvements, and (4) make good and protect
the Obligee against the results of any defective work..-nanship or materials appearing to have been
incorporated in any part of the Public Improvements which shall have appeared or been
discovered within the Warranty Period, and cover all obHgations including attorney fees,
administration costs, and all Developer obligations for payment of contractors, subcontractors
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and suppliers/materialmen as required by the Deveioper's Agreement, then this obligation shall
be null and void; othervvise, to remain in full force and effect.
F or purpose of this Perfonnance,;W arrant)' Bond, Principal and S uret)' agree that in the event that
any Public Improvements are damaged, the burden shall be on the Principal to show that such
damage was not caused by Principal, its agents, servants, employees, successors or assigns or by
any contractor hired by Principal, its agents, serv'ants, employees, successors or assigns, or any
subcontractor hired by such contractor;
Any suit under this Bond must be instituted before the expiration date of two (2) years after the
Completion Date;
No right of action shall accrue under this Bond to or for the use of any person or corporation
other than the Obligee, its successors or legal representatives.
Any notice required hereunder shall be deemed properly served when deposited in the U.S. MaiL
certi:tIed, postage prepaid, addressed to any party at its address hereinafter set forth.
SIGNED, SEALED Ai'-fD DATED this
day of
,19____
In the presence of:
P:incipal
By:
Surety
By:
. i
Attomey-in- F ac:
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