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HomeMy WebLinkAbout4K - Cardinal Ridge 4th DATE: INTRODUCTION: BACKGROUND: DISCUSSION: STAFF AGENDA REPORT 4K R. Michael Leek, Associate Planner Consider Adoption of Resolution 96-51 Approving the Final Plat of Cardinal Ridge 4th Addition and Developer's Agreement. May 20, 1996 The purpose of this agenda item is to consider adoption of Resolution 96-51 approving the final plat and developer's agreement for Cardinal Ridge 4th Addition. The developer's agreement is attached. The final plat was reviewed in accordance with the approved Schematic PUD Plan and preliminary plat and Sections 6-5-1 and 6-7-1 through 6-7-17 of the Subdivision Ordinance. The principal requirements for final plat approval include a signed developer's agreement. The Schematic and Preliminary PUD and the preliminary plat of Cardinal Ridge were approved by the City Council on June 7, 1993. See attached City Council minutes dated June 7 for reference. The conditions placed upon the preliminary plat have been satisfied or will be accounted for in the developer's agreement and Resolution 96-51 approving the final plat. The developer shall comply with the park dedication and contribution requirements as defined in the City Code. The park dedication for the plat shall be fulfilled through the following: A. The Park Dedication for the plat will include the land which is identified as Outlots A and C on Exhibit C of the Developer's Agreement. B. The developer further agrees to grade the trail which extends from Cardinal Ridge Trail to Victoria Curve. The developer also agrees to grade the parking lot which is located on Outlot A of Cardinal Ridge 4th Addition in between Lot 11 of Block 2 of Cardinal Ridge 3rd Addition and Lot 1 of Block 4 of Cardinal Ridge 4th Addition. The developer also agrees to provide berming and planting of coniferous trees along the outside edges of the parking lot CR4TI1CC.DOC 1 16200 Eagle Creek Ave., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER RESOLUTION 96-51 RESOLUTION OF THE PRIOR LAKE CITY COUNCIL TO APPROVE THE FINAL PLAT OF "CARDINAL RIDGE 4TH ADDITION" AND DEVELOPER'S AGREEMENT AND SETTING FORTH CONDITIONS TO BE MET PRIOR TO RELEASE OF THE FINAL PLAT. MOTION BY: SECOND BY: WHEREAS: the City Council held a hearing on and approved, subject to conditions identified in the meeting minutes, the Schematic and Preliminary PUD and the preliminary plat of Cardinal Ridge on June 7, 1993; and WHEREAS: the City Council has found that the final plat of "Cardinal Ridge 4th Addition" is in substantial compliance with the approved Schematic and Preliminary PUD and preliminary plat; and WHEREAS: The City Council has approved the fmal plat of "Cardinal Ridge 4th Addition". 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. A current title opinion or commitment of title insurance be submitted acceptable to the City Attorney. 2. Payment of all fees prior to release of the fmal plat mylars. 3. Reductions of the entire fmal plat be submitted, to the following scales: I" = 800'; I" = 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 be submitted. 5. The developer provide financial security, acceptable to the City Engineer. 6. The final plat and all pertinent documents must be filed with Scott County within 60 days from the date of final plat approval. Failure to record the documents by July 19, 1996, will render the fmal plat null and void. Passed and adopted this 20th day of May, 1996. YES NO ANDREN GREENFIELD KEDROWSKI MADER SCHENCK ANDREN GREENFIELD KEDROWSKI MADER SCHENCK Frank Boyles, City Manager City of Prior Lake {Seal} RES9651.DOC 16200 Eagle Creek Ave., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTIJNITY EMPLOYER CONTRACT FOR DEVELOPMENT OF LAND IN THE CITY OF PRIOR LAKE, MINNESOTA THIS AGREEMENT, made and entered into as ofthe.2ilih day of May 192,6, by and between the City of Prior Lake, a municipal corporation organized under the laws of the State of Minnesota and Sienna Corporation, a Minnesota corporation. WITNESSETH THAT: WHEREAS, Developer is duly organized to do business in the State of Minnesota and owns the Property within the City of Prior Lake; Scott County, Minnesota legally described in Exhibit C, and WHEREAS, Developer desires to develop the Property; and WHEREAS, Developer has made application to City Council for approval of the plat of the Property; and WHEREAS, the City has granted preliminary plat approval and final plat approval to Cardinal Ridge 4th Addition on the condition that, among other things, Developer enter into this Agreement to provide for installation of Developer improvements and all other improvements hereafter described all on the terms and conditions hereafter set forth. WHEREAS, under authority granted to it, including Minnesota Statutes Chapters 412, 429, and 462, the COUNCIL has agreed to approve the PLAT and DEVELOPMENT PLANS, and NOW, THEREFORE, in consideration of these premises and of the mutual promises and conditions hereinafter contained, it is hereby agreed as follows: 1. DEFINITIONS. RULES OF INTERPRETATION AND EXHIBITS. A. Definitions In this agreement the following terms shall have the following respective meanings unless the context hereof clearly requires otherwise: a. "Agreement" means this Contract for Development of Land in the City of Prior Lake, Minnesota, by and between City and Developer, Sienna Corporation, as the same may be from time to time modified, amended or supplemented. b. "Cash Escrow Deposit" means a cash deposit with the City Finance Director in the amount of $Q.Jill (1250/0 of Cost of Developers Improvements). c. "City" means the City of Prior Lake, a governmental subdivision of the State of Minnesota. d. "City Attorney" means the City Attorney of the City of Prior Lake. e. "City Council" means the Prior Lake City Council. f. "City Engineer" means the City Engineer of the City of Prior Lake. g. "City Finance Director" means the City Finance Director of the City of Prior Lake. h. "Cost of Developer Improvements" means the cost of Developer Improvements as estimated by and in the sole discretion of the City Engineer shown on Exhibit A. 1. "Developer" means Sienna Corporation, its successors and assigns. J. "Developer's Installed and Financed Improvements" means the construction work to be performed by Developer on the Property including, but not limited to, the trees, grading, topsoil and sodding, sidewalks and driveways, curb-stop adjustments, street lighting, streets, curb and gutter, water supply, sanitary sewer, storm sewer/storm water improvements, drainage, erosion control improvements, permanent street improvements and traffic signing improvements to be performed, installed or constructed upon the Property pursuant to this Agreement, the plans, specifications, drawings and related documents, and in accordance with the policies and ordinances of the City as City may adopt from time to time. k. "Event of Default" shall mean whenever it is used in this Agreement anyone or more of the following events: (I) failure by Developer to timely pay all real property taxes assessed with respect to the Property; (ii) failure to construct the Developer's Improvements pursuant to the terms, conditions and limitations of this Agreement; (iii) failure by Developer to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement; (iv) transfer of any interest in Developer; (v) failure to correct any warranty deficiencies; (vi) failure by Developer to timely pay all contractors, subcontractors and material suppliers for the Development Financed and Installed Improvements; (vii) failure by Developer to reimburse City for any costs increased by City in connection with this Agreement, including the enforcement thereof; including, but not limited to engineering fees, inspection and testing fees, attorney fees and other professional fees; (viii) if the term of the Irrevocable Letter of Credit and/or the Payment Bond, the Performance Bond or the Warranty Bond will expire prior to the expiration of the Warranty Period, the failure by Developer to renew the Irrevocable Letter of Credit and/or renew the Performance Bond or the Warranty Bond at least forty -five (45) days prior to its expiration. l. "First Completion Date" means November 30. 1996. m. "Second Completion Date" means July 15 1997. o. "Irrevocable Letter of Credit" means an irrevocable letter of credit in the amount of $359 131 00 (1250/0 of Cost of Improvements) in the form of Exhibit B. o. "Including" means including, but not limited to. p. "Performance Bond or Warranty Bond" means a Performance Bond or Warranty Bond provided by the Developer during the Warranty Period in the form of Exhibit F in an amount as specified by the City Engineer. 2 q. "Permanent Street Improvements" means permanent street surfacing in accordance with the policies and ordinances of the City. r. "Plat" means the plat of Cardinal Ridge 4th Addition comprising the real property located in Prior Lake, Scott County, Minnesota and legally described on the attached Exhibit C. s. "Policy for Private Development Projects" means the Policy for Private Development Projects adopted by the City Council. 1. "Property" means the real property, together with improvements, if any, described in Exhibit C. u. "Registered Professional Engineer" means a person currently licensed in Civil Engineering with the Minnesota State Board of Registration for Architects, Engineers, and Land Surveyors. v. "Sewer and Water Improvements" means sanitary sewer and water laterals or extensions including all necessary building services in accordance with the policies and ordinances of City as City may adopt from time to time. w. "Storm Sewer Improvements" means storm sewers. catch basins, inlets and other appurtenances when determined to be necessary by City Engineer in accordance with the policies and ordinances of City as City may adopt from time to time. x. "Street Improvements" means street grading, graveling, and stabilizing including construction of boulevards and turf establishment in accordance with policies and ordinances of City as City may adopt from time to time. y. "Subdivision" means the division of a parcel of land into two or more lots or parcels by any means including platting, registered land survey and conveyance by metes and bounds. Where appropriate to the context, "subdivision" shall relate to the process of subdividing or to the land to be subdivided. z. "Traffic Signing Improvements" means standard street name signs at all newly opened intersections and such other traffic control signs within the Subdivision determined to be necessary by City Engineer in accordance with the policies and ordinances of City as City may adopt from time to time. aa. "Unavoidable Delay" means Acts of God, casualties, war, civil commotion, embargo, riots, utilities, energy or fuels, failure after diligent effort to obtain required environment or other approvals, authorization or permits, any acts or omissions of any governmental authority with jurisdiction, (other than the City), and all other causes of events which are beyond Developer's or City's control. bb. "Construction Inspection of Developer Projects" means the inspection of Developer's Installed and Financed Improvements by the City Engineer or his designee; including any Consultant Engineers hired by the City, the costs of which are to be either 3 reimbursed to the City by the Developer or at the election of the City paid directly to consultant by the Developer. The costs of inspection of grading and erosion control improvements by the City or by the City's Consultant Engineers are to be reimbursed also by the Developer. cc. "Utility Companies" means and includes, jointly and severally, the following: 1. railroad companies 2. utility companies, including electric gas, telephone, and cable 3. pipeline companies. dd. "Prior Easement Holders" means and includes, jointly and severally, all holders of any easements or other property interests which existed prior to the grant or dedication of any public easements transferred by the PLA T or transferred pursuant to this CONTRACT FOR DEVELOPMENT. ee. "Developer Public Improvements" means and includes, jointly and severally, all the improvements identified and checked on the attached Exhibit G that are further labeled "public". DEVELOPER PUBLIC IMPROVEMENTS are improvements to be constructed by the DEVELOPER within public right-of-way and which are to be approved and later accepted by the CITY. DEVELOPER PUBLIC IMPROVENIENTS are part of DEVELOPER IMPROVEwlENTS. B. Interpretation This agreement 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 Agreement as a whole rather than to any particular section or subdivision hereof. Reference herein to any particular section or subsection hereof are to the section or subsection of the Agreement as originally executed. Any titles of the several parts, articles and sections of this Agreement are inserted for convenience of reference only and shall be disregarded if construing or interpreting any of its provisions. The following exhibits are attached hereto and by reference made a part of this Agreement as if fully set forth herein. Exhibit A - Cost of Developer Improvements Exhibit B - Letter of Credit Exhibit C - Property Identification Exhibit D - Developer and City Cost Summary Exhibit E - Special Conditions Exhibit F - Performance/W arranty Bond 4 "",,~_____~__,,__,,-_,,>""'~""=""""'''~_~'A''''''''_';*-"'~'____._,...._.......",_-----.._.......,__~,.,-....""'......,.~"""..'~.M......~..'".__.....",.......,'...._,...~'...'.. -.".-._~_._,..,., .-.,,-.._,-~,~~',_.- ~.._-"''''',""",....-..~--~.,~..-..,.... Exhibit G - Developer Improvements and Completion Dates Exhibit H - Residential Street Lighting Policy 2. DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS 2.1 General Provisions a. Developer shall construct and install, at Developer's expense (except as hereinafter provided), the Developer Installed and Financed Improvements, in accordance with the terms of this Agreement, the policies and ordinances of the City, as the City may adopt from time to time, and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations) and according to the plans, specifications, drawings and related documents submitted approval, and shall timely pay all contractors, subcontractors, and suppliers/materialmen for the Developer Improvements. b. The plans, specifications, drawings and related documents shall be prepared by a Registered Professional Engineer subject to review and written approval by City Engineer. c. Changes in plans, specifications, drawings and related documents will only be permitted if the revised plans, specifications, drawings and related documents are submitted to and approved in writing by City Engineer prior to making any of the contemplated changes. d. Prior to construction of the Developer Installed and Financed Improvements, Developer shall provide an executed copy of any contract entered into by Developer with a third party for the installation of the Developer Installed and Financed Improvements. e. On or before the date hereof, Developer shall pay to the City a fee equal to 60/0 of the estimated developer project cost as determined by the City Engineer to cover the costs of City in preparing and administering this Agreement. f. On or before the date hereof, Developer shall furnish to the City, at the sole option of the City, the Irrevocable Letter of Credit or Cash Escrow Deposit. g. Bituminous Base Street Improvements, Storm Sewer Improvements, Sanitary Sewer Improvements and Watermain Improvements shall be completed by the First Completion Date. Permanent Street Improvements, Trailway/Sidewalk Improvements, Landscaping Improvements, Traffic Signing Improvements and all other Developer Improvements as per plans and specifications shall be completed by the Second Completion Date. Noncompliance with either the First Completion Date or the Second Completion Date unless caused by an unavoidable delay consented to by the City in its sole discretion will cause the Irrevocable Letter of Credit or Cash Escrow Deposit to be called on, unless an extension of time is granted by City Engineer in his sole and absolute discretion. 2.2 Inspection Services The City, either utilizing the City's Engineering Department Personnel, the City's Consultant Engineering Personnel, Consultant Testing Services, and City Attorney Services shall inspect the 5 Developer Installed Improvements in accordance with the policy for private development projects adopted by the City. Inspection services by the City shall include: 1. Inspection of public improvement systems which include grading, sanitary sewer, watermain, storm sewer/ponding and street system 2. Documentation of construction work and all testing of improvements. 3. As-built location dimensions for sanitary sewer, watermain, and storm sewer facilities. 4. Coordination with testing company for soil and material testing and actual material testing costs as performed by City consultants or City staff. All construction inspection service charges for City Engineering personnel, City Consulting Engineering personnel fees, Consultant Testing Services, and City Attorney Services shall be paid by the Developer to the City or as directed by the City to City's Consultant within twenty (20) days from the date of Developer's receipt of invoices for such services all in accordance with the Policy for Private Development Projects. Failure to pay said invoice charges within said twenty (20) day payment period, may cause the City without further notice to draw down on the Irrevocable Letter of Credit in the full amount of said invoices, at the sole and absolute discretion of the City. In the event the Irrevocable Letter of Credit is insufficient to reimburse the City for such inspection service charges, then the City shall have the right to deny building permits or occupancy permits to the Property or any portion thereof until such time as said charges have been paid in full or the amount of the Irrevocable Letter of Credit has been increased to at least the amount of such inspection service charges together with the sums necessary to secure the Developer's guaranty. 2.3 Developer Services The Developer or its Consulting Engineer shall be responsible for providing all other construction services including, but not limited to: a.. Construction surveying. b. As-built drawings of development improvements including grading plans. (Tie dimensions to sewer and water services from City staff or City consultant). c. Construction quantities. d. Change orders. e. Construction administration of project. f. Construction payment vouchers. g. Project Testing - The Developer is responsible through its testing company, at the Developer's cost, to provide testing to certify that the Project was completed in 6 compliance with the approved plans and specifications. The personnel performing the testing shall be certified by the Minnesota Department of Transportation or have equivalent certification. The City Engineer may require additional testing if in his opinion adequate testing is not being performed. The cost of additional testing is to be paid by the Developer. 2.4 Street Signs The DEVELOPER shall be financially responsible for the installation of street identification signs and non-mechanical and non-electrical traffic control signs. Street signs will be in conformance with the names as indicated on the PLAT and pursuant to CITY standards. The actual number and location of signs to be installed shall be determined by the CITY and actual installation shall be performed by CITY authorized personnel. 2.5 Boulevard and Area Restoration The DEVELOPER shall seed or lay cultured sod in all boulevards within 30 days of the completion of street related improvements and restore all other areas disturbed by the development grading operation in accordance with the approved erosion control plan, over the entire PLAT. Upon request of the City Engineer, the DEVELOPER shall remove the silt fences after grading and construction have occurred. 2.6 Subdivision Monuments The DEVELOPER shall install all subdivision monumentation within one 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 year period from recording of this CONTRACT FOR DEVELOPMENT, the DEVELOPER shall submit to the City Engineer written verification by a registered land surveyor that the required monuments have been installed throughout the PLAT. 2.7 Occupancv No occupancy of any building in the PLAT shall occur until water and sanitary sewer improvements have been installed and the streets have been adequately graded and the gravel sub-base course of bituminous have been constructed and said improvements have been inspected and approved by the CITY and are determined by the CITY to be available for use. 2.8 Driveways The DEVELOPER at its expense shall construct concrete or bituminous surface driveway approach areas for each lot in accordance with CITY approved standards. 2.9 Vegetation The DEVELOPER shall comply with CITY ordinances and policies related to preservation of vegetation and trees and specifically shall exercise reasonable efforts in residential areas to save mature, undiseased trees and vegetation on the subject land which do not have to be removed for reasonable installation of buildings, streets, sidewalks, utilities or drainage improvements, 7 construction activities related thereto, or site grading. Prior to any excavation, the DEVELOPER shall mark trees and protect such trees by snow fences or other suitable enclosures. All diseased trees shall be removed according to CITY ordinance requirements. 2.10 Erosion Control a. The DEVELOPER shall provide and follow a plan for erosion control and pond maintenance in accordance with the Best Management Practices (BMP) as delineated in the Minnesota Pollution Control Agency's Handbook titled "Water Quality in Urban Areas". Such plan shall be detailed in the APPROVED FINAL PLANS and shall be subject to approval of the CITY. The DEVELOPER shall install and maintain such erosion control structures as necessary under the APPROVED FINAL PLANS or become necessary subsequent thereto. b. As required by the CITY, the DEVELOPER shall be responsible for all damage caused as the result of grading and excavation within the development including, but not limited to, restoration of existing control structures and clean-up of public right-of-way, until all lots are final graded and improvements are completed. The erosion control plan shall provide that the DEVELOPER shall re-seed or sod any disturbed areas in accordance with the APPROVED FINAL PLANS. The DEVELOPER shall provide the required wet storage volume in the water quality treatment ponds at the time of acceptance of the Developer Installed and Financed Improvements by the CITY. c. After NOTICE to the DEVELOPER, the CITY reserves the right to perform any necessary erosion control or restoration as required. If these requirements are not complied with after NOTICE by the CITY, and if not cured by the DEVELOPER within forty-eight (48) hours after NOTICE, the DEVELOPER shall be financially responsible to the CITY for payment of this extra work. If after NOTICE the CITY performs any necessary erosion control or restoration work it shall, without further notice, as described in Section 16, be entitled to draw on the IRREVOCABLE LETTER OF CREDIT. 2.11 Access The DEVELOPER hereby grants to the CITY, its agents, employees, officers, and contractors a non-revocable license to enter the PLAT during the installation of CITY HvlPROVEMENTS and DEVELOPER IrvfPROVEMENTS to perform all work and inspections deemed appropriate by the CITY. 3. DEVELOPER REPRESENT A TIONS 3.1 DEVELOPER represents and warrants that neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or a compliance with the terms and conditions of this Agreement is prevented or limited by, or in conflict with or will result in breach of, the terms, conditions or provisions of any restriction of DEVELOPER, or evidence of indebtedness, agreement or instrument of whatever nature to which DEVELOPER is now party or by which it is bound or will constitute a default under any of the foregoing. DEVELOPER further represents and warrants that DEVELOPER will cooperate with CITY with respect to any litigation commenced with respect to the PROPERTY or DEVELOPER INSTALLED AND FINANCED IMPROVElVIENTS. DEVELOPER 8 represents and warrants that the DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS will conform to all laws, regulations and ordinances of all local, state and federal government authorities. 3.2 Whenever an Event of Default occurs and CITY shall employ attorneys or incur other expenses, including employment of experts, for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of DEVELOPER herein contained, DEVELOPER agrees that it shall, on demand thereof, pay to CITY the reasonable fees of such attorneys and such other expenses so incurred by CITY. DEVELOPER agrees to hold harmless, indemnify and defend CITY and its employees against any claims or actions brought as a result of DEVELOPER'S performance under this Agreement or as a result of alleged actions or omissions on the part of DEVELOPER, its employees or agents. 4. OVERSIZING CITY and DEVELOPER agree that the DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS should be oversized for the benefit of future development. CITY and DEVELOPER agree that the cost of system oversizing to be reimbursed to the DEVELOPER is $0.00 based upon an estimate as determined by the City Engineer. DEVELOPER shall pay CITY upon demand the Trunk Oversizing Costs per the schedule outlined in the City's Assessment Policy. These rates are as follows: S & W Acreage Trunk Storm Sewer (single-family) Collector Street Fee $3,500.00/net acre $ 0.168/net sq. ft. $1 ,500.00/net acre DEVELOPER waives any and all claims, assertions, causes of action, in law or in equity, as to the costs and/or determination of said oversizing allocated to DEVELOPER, calculations and/or determinations of them, as made by or on behalf of CITY for all "'oversizing" requirements of DEVELOPER as may be specified and contained in this Agreement or attachments hereto. The parties acknowledge and agree that the fees and costs allocated to CITY and DEVELOPER, as set forth herein and any exhibits hereto, may be based upon estimated costs made by or on behalf of CITY. The cost of the oversizing, as estimated by or on behalf of CITY, is binding upon CITY and DEVELOPER. 5. INSURANCE 5.1 On or before the date hereof, DEVELOPER and its contractors shall procure and maintain or cause to be maintained during the term hereof, at its sole cost and expense, the following types of insurance in the amounts specified and in the form provided for below: a. Comprehensive general public liability insurance against claims for bodily injury, death or property damage occurring upon or in the Property and the improvements, such insurance to afford protection to a combined single limit of not less than $2.000 000.00 with respect to death or injury to anyone or more persons and $1 000 000.00 with respect to property damage. Insurance term shall expire at the conclusion of the warranty period. 9 b. Workers compensation insurance, with statutory coverage. c. Such other insurance in such amounts as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure. 5.2 The policies of insurance required hereunder shall be taken out and maintained with responsible insurance companies licensed to transact business in the State of Minnesota. Certificates evidencing such insurance shall be furnished to CITY upon commencement of construction of DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS. Each policy shall contain a provision that the insurer shall give not less than thirty (30) days advance written notice to City in the event of cancellation of the policy, non-renewal or changes affecting the coverage thereunder. 5.3 CITY shall be named as an additional named insured under all policies required to be maintained by DEVELOPER and executed copies of all such policies of insurance or certificates thereof shall be delivered to CITY promptly upon their issuance and thereafter until thirty (30) days prior to the expiration of the term of each such policy. As often as any such policy shall expire or terminate, renewal or additional policies shall be procured and maintained by DEVELOPER in like manner and to like extent. 6. STREET l\tIAINTENANCE DURING CONSTRUCTION DEVELOPER shall be responsible for all street maintenance until the DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS are accepted by the CITY. 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. DEVELOPER shall be responsible for keeping streets within and without the Subdivision swept clean of dirt and debris that may spill or wash onto the streets. The DEVELOPER shall daily clean streets of dirt and debris which has resulted from construction work by the DEVELOPER and its agents or assigns. 7. ESCROW REQUIREI\'lENT 7.1 Contemporaneously herewith, the DEVELOPER shall deposit with the CITY an Irrevocable Letter of Credit or, in the sole election of the City, a cash deposit for the amount stated in Exhibit D. The DEVELOPER shall submit to the City the Irrevocable Letter of Credit one week prior to the City Council meeting scheduled for final PLAT approval. 7.2 a. All cost estimates in Exhibit D shall be acceptable to the City Engineer. The total escrow amount was calculated based on the Developer's costs shown on the attached Exhibit D. The bank and form of the Irrevocable Letter of Credit, or cash deposit shall be subject to approval by the City Finance Director and City Attorney and shall continue to be in full force and effect until released by the CITY. The Irrevocable Letter of Credit shall be for a term ending July 15 1998. b. In the alternative, the Irrevocable Letter of Credit may be for one year terms provided it is automatically renewable for successive one year periods from the present or any future 10 expiration dates with a final expiration date of July 15. 1998' and, further provided that the Irrevocable Letter of Credit states that at least sixty (60) days prior to the expiration date the bank will notify the City that if the bank elects not to renew for an additional period. 7.3 The Irrevocable Letter of Credit shall secure compliance by the DEVELOPER with the terms of this CONTRACT FOR DEVELOPMENT; including but not limited to any and all conditions of approval in Resolution 96-51 approving the final PLAT. In the EVENT OF DEFAULT, the CITY, after NOTICE as provided for in Section 10, may draw on the Irrevocable Letter of Credit or cash deposit. 8. ACCEPTANCE OF PLAT AND DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS CITY will accept the PLAT and DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS after it has been completed in accordance with the provisions of this Agreement and based on the terms and conditions set forth in Resolution 96-51 approving the final PLAT, the policies and ordinances of the CITY, and all local, state and Federal laws and regulations. DEVELOPER shall furnish certificates of completion for the completed DEVELOPER INSTALLED AND FINANCED IMPROVEivlENTS 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 DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS by the City Engineer, DEVELOPER shall furnish to CITY an Irrevocable Letter of Credit guaranteeing satisfactory performance of the DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS in an amount equal to 25010 of the original cost next to THE DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS. The 250/0 Letter of Credit guarantee amount can be reduced upon the following conditions: A. Irrevocable Letter of Credit-First Completion Date. The IRREVOCABLE LETTER OF CREDIT guaranteeing satisfactory performance of the DEVELOPER INSTALLED AND FINANCED IMPROVENIENTS can be reduced to 50/0 of the original cost of the DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS to be completed by the First Completion Date plus 125% of the original cost of DEVELOPER INSTALLED AND FINANCED 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 Performance Bond or a Warranty Bond from the Developer and its contractors in an amount equal to the cost of the DEVELOPER INSTALLED AND FINANCED HvlPROVEMENTS 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. Irrevocable Letter of Credit-Second Completion Date. The Irrevocable Letter of Credit guaranteeing satisfactory performance of the DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS can be reduced to 50/0 of the original cost of the DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS after acceptance of all DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS by the City Engineer in writing and by providing the CITY a Performance Bond or a Warranty Bond from the DEVELOPER and its contractors in an amount equal to the original cost of the II improvements which shall be in force for one (1) year (the "Warranty Period") following acceptance of all required improvements and shall guarantee satisfactory performance of such improvements. All punch list items related to the Second Completion Date must be completed before a reduction in security will be considered. The Warranty Period shall begin effective the date that the City Engineer accepts all of the completed DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS, in writing, including the mylar "as-built" reproducibles for all phases of construction included in this Agreement. C. Warranty on Proper Work and Materials. The DEVELOPER warrants all work required to be performed by it under this CONTRACT FOR DEVELOPMENT against defective material and faulty workmanship for a period of one (1) year after its completion and acceptance by the CITY ("Warranty Period"). The DEVELOPER shall be solely responsible for all costs of performing repair work required by the CITY within thirty (30) days of notification. All trees, grass, and sod shall be warranted to be alive, of good quality, and disease free for one (1) year from the time of planting, any replacements shall be similarly warranted for one year from the time of planting. D. Faithful Performance of Construction Contracts. The DEVELOPER shall fully and faithfully comply with all terms of any and all contracts entered into by the DEVELOPER for the installation and construction of all of the DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS; and the DEVELOPER shall obtain lien waivers on all DEVELOPER INSTALLED AND FINANCED INIPROVENIENTS. 9. RELEASE. HOLD HARMLESS DEVELOPER releases from and covenants and agrees that CITY, its City Council, officers, agents, servants and employees thereof (hereinafter for purposes of this paragraph, the "indemnified parties") shall not be liable for and agrees to indemnify and hold harmless the indemnified parties against any loss or damage to property or any inj ury to or death of any person occurring at or about or resulting from any defect in the Property or DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS. 10. EVENT OF DEFAULT 10.1 Whenever an Event of Default occurs, the CITY after providing Developer NOTICE, as required in Section 16, may take anyone or more of the following actions, unless a specific NOTICE period is otherwise provided for by another Section of this Agreement. a. CITY may suspend its performance under the Agreement. b. CITY may cancel and rescind this Agreement. c. CITY may draw upon and/or bring an action upon any or all of the guaranties including but not limited to the Cash Escrow Deposit and/or Irrevocable Letter of Credit, the Payment Bond, the Performance Bond or the Warranty Bond provided to CITY pursuant to any of the terms of this Agreement. 12 d. CITY may take whatever action, including legal or administrative action, which may be necessary or desirable to CITY to collect any payments due under this Agreement or to enforce performance and/or observance of any obligation, agreement or covenant of Developer under this Agreement. e. CITY may suspend issuance of Building Permits and/or Occupancy Permits on Developer's lots. f. CITY may draw upon the Irrevocable Letter of Credit if CITY receives Notice that the bank elects not to renew the Irrevocable Letter of Credit. 10.2 None of the actions set forth in this Section are exclusive or otherwise limit the CITY in any manner. 11. NON-DISCRIMINATION The provisions of Minnesota Statutes, Section 181.59, and of Chapter 11, Title I of the Prior Lake City Code as may be modified, which relate to civil rights and discrimination and affirmative action shall be considered a part of this Agreement as though wholly set forth herein, and Developer agrees to comply therewith. Notwithstanding the foregoing, contractor specifically indemnifies and holds harmless the CITY against claims by third parties brought to enforce the provisions of this Section. 12. ASSIGNMENT 12.1 DEVELOPER represents and agrees for itself, its successors and assigns that DEVELOPER has not made or created and that it will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance or any trust or power to transfer in any other mode or form of or with respect to this Contract for Development Agreement or in Developer without the prior written approval of the CITY. 12.2 The DEVELOPER may not transfer or assign this CONTRACT FOR DEVELOPlVlENT without the prior written permission of the COUNCIL. The DEVELOPER's obligations 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. 13. PARK DEDICATION AND CONTRIBUTION 13.1 The DEVELOPER shall comply with the park dedication and contribution requirements as defined in the City Code. The park dedication for the PLAT shall be fulfilled through the following: A. The Park Dedication for the plat will include the land which is identified as Outlots A and C , on Exhibit C. B. The DEVELOPER further agrees to grade the trail which extends from Cardinal Ridge Trail to Victoria Curve. The DEVELOPER also agrees to grade the parking lot which is located on Outlot A of Cardinal Ridge 4th Addition in between Lot 11 of Block 2 of Cardinal Ridge 3rd Addition and Lot 1 of Block 4 of Cardinal Ridge 4th Addition. 13 C. The DEVELOPER also agrees to provide berming and planting of coniferous trees along the outside edges of the parking lot located on Outlot A. The City will provide the DEVELOPER with parking lot and trail design and location. 13.2 The Park Dedication and Contribution shall be paid and fulfilled by the DEVELOPER contemporaneously with the execution of this CONTRACT FOR DEVELOPMENT. 14. PERMITS 14.1 The DEVELOPER shall obtain all necessary approvals, permits and licenses from the CITY, the Other Regulatory Agencies, the Utility Companies and the Prior Easement Holders (collectively "entities"). If any of the entities require a change to the DEVELOPMENT PLANS submitted for review, approval or permitting such changes shall be deemed by the CITY to be incorporated into the DEVELOPMENT PLANS unless otherwise agreed to by the CITY. 14.2 All costs incurred to obtain said approvals, permits and licenses, and also all fines or penalties levied by any agency due to the failure of the DEVELOPER to obtain or comply with conditions of such approvals, permits and licenses, shall be paid by the DEVELOPER. 14.3 The DEVELOPER's shall defend and hold the CITY harmless from any action initiated by the Other Regulatory Agencies, the Utility Companies and the Prior Easement Holders resulting from such failures of the DEVELOPER. 15. RECORDING 15.1 This CONTRACT FOR DEVELOPMENT shall be recorded by DEVELOPER within thirty (30) days from approval of the Resolution approving Final PLAT, and all terms and conditions of this Agreement shall run with the land herein described, and shall be binding upon the heirs, successors, administrators and assigns of the DEVELOPER. The DEVELOPER shall provide and execute any and all documents necessary to implement the recording. 15.2 The terms and provisions hereof be binding upon and inure to the benefit of the heirs, representatives, successors and assigns of the parties hereto and shall be binding upon all future owners of any or any part of the property within the PLAT and shall be deemed covenants running with the land. If there be more than one developer, references herein to DEVELOPER shall mean each and all of them. 15.3 All recording fees, if any, shall be paid by the DEVELOPER. 16. NOTICE 16.1 Whenever this Agreement requires or permits that NOTICE be given or served by one party to another party to this Agreement or on the other party, such NOTICE shall be delivered personally or mailed by United States mail to the addresses hereinafter set forth, by certified mail (return receipt requested). Such NOTICE shall be deemed timely given when delivered personally or when deposited in the mail in accordance with the above. The address of the parties are as follows, until changed by notice given as above: 14 If to City: City Engineer City of Prior Lake 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372 Phone: 447-4230 With a copy to: Suesan Lea Pace Campbell, Knutson, Scott and Fuchs, P .A. 1380 Corporate Center Curve, Suite 317 Eagan, MN 55121 Phone: 452-5000 If to Developer: Jim Johnston Sienna Corporation 4940 Viking Drive Minneapolis, MN 55435 Phone: 835-2808 16.2 Unless otherwise provided in this Agreement the Notice period shall be fifteen (15) calendar days. 16.3 Where this Agreement or any prOVISIOn hereof makes the time of performance subject to Unavoidable Delay, the time or times for such performance shall be extended for the period of such Unavoidable Delay, provided, that the party seeking the benefit of the provisions of this section shall, within five (5) days after the beginning of any such Unavoidable Delay, havy first notified the other party thereof in writing, and of the cause or causes thereof, and requested an extension for the period of such delay. Any extension granted hereunder shall be in writing. 17. MODIFICATIONS OR AJVIENDMENTS This Agreement may be amended by the parties hereto only by written instrument executed in accordance with the same procedures and formality followed for the execution of this Agreement. 18. PROOF OF TITLE 18.1 DEVELOPER shall furnish a title opinion or title insurance commitment addressed to the CITY demonstrating that DEVELOPER is the fee owner or has a legal right to become fee owner of the Property upon exercise of certain rights and to enter upon the same for the purpose of developing the property. DEVELOPER agrees that in the event DEVELOPER's ownership in the Property should change in any fashion, except for the normal process of selling or conveying lots, prior to the completion of the Project and the fulfillment of the requirements of this Agreement, DEVELOPER shall forthwith notify the CITY of such change in ownership. (Any change in ownership shall not release DEVELOPER from any of its obligations under this Agreement, unless or until the CITY has approved transfer of this Agreement and then only to the extent agreed to by the CITY.) 19. WAIVER Failure of either party at any time to require performance of any provision of this Agreement shall not affect its right to require full performance thereof at any time thereafter and the waiver 15 by either party of a breach of any such provision shall not be taken or held to be a waiver of any subsequent breach thereof or as nullifying the effectiveness of such provision. 20. HEADINGS Headings at the beginning of paragraphs hereof are for convenience of reference, shall not be considered a part of the text of this Agreement, and shall not influence its construction. 21. SEVERABILITY In the event any provisions of this Agreement shall be held invalid, illegal, or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof, and the remaining provisions shall not in any way be affected or impaired thereby. 22. COUNTERPARTS This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. 23. CONSTRUCTION This Agreement shall be construed in accordance with the laws of the State of Minnesota. IN WITNESS WHEREOF, City and Developer have caused this Agreement to be duly executed on the day and year first above written. By (City Attorney) By ;;::/rION Its resident: B G. }IiffiffieF .1 J~, ~" HAt1~J V7~t7n Vile- Approved by the City Council on the 20th day of May, 1996. APPROVED AS TO FORM: CITY OF PRIOR LAKE: By Its Mayor By Its City Manager [This Agreement must be signed by all parties having an interest in the Property.] This instrument prepared by: City of Prior Lake 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372 16 , ...~",.__~__~,..,..~_......~."_~~_><T"''''"_'~'_~~'_'-''-''''''__~'''''_''_,"~___..............".....................;___"__....."_,...,,."..#~~.~..,.,^,,~"''''''_,,~''_;' _"._"-",,,_~_,'-',^-~"--'--_..-,,-" NOTE TO DEVELOPERS: Any costs whether a bid or estimate, as set forth in the CONTRACT FOR DEVELOPMENT are fixed. There is no reimbursement to the City by the Developer for cost under runs or to the Developer by the City for cost over runs. , Develope{ S;C('\ V\a. CD rpOl'tLffn1 ~l/h/~ 1 ts President .^ ~/JO! City of Prior Lake: Frank Boyles, City Manager Lydia Andren, Mayor CRDRDG4DOC STATE OF MINNESOTA} }ss: COUNTY OF SCOTT } On the day of , 19_, before me, a Notary Public, with and for said County personally appeared Lydia Andren and Frank Boyles, to me personally known, being each by me duly sworn did say that they are the Mayor 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 and acknowledged said instrument to be the free act and deed of said municipal corporation. Notary Public STATE OF MINNESOTA} }ss: COUNTY OF ~~ 1 }.- J H-e~ )'\ e p, )'\ The foregoing instrument was acknowledged before me this , 1996, by ... / On;1 Hc,nl:..ln ~ C'Y1.. and by \ J t c:..e f) f (!. <:. i rl t' .. 't 1--- and . , Minnesota Corporation, on behalf of said corporation. I ~ay of Jt, 1P<-J · , who ~he _ of Sienna Corporation a f. · , JAMES W. JOHNSTON 6 NOTARY PUBLIC - MINNESOTA i ~ CARVER COUNTY ..uuu~~~m. ExpireeJan. 31, 2000 ................ -. ..-~..~....:-. ..~~.. ...........,. CRDRDG4.DOC 5/09/96 lTEIt 8" P;if: SDP.35 8illR ~'.12' MAY 13 196 09:23 SIENNA CORP PROJECT NAnt: ( ~OJ)tl... (). ro~€ l(-t-\ fl./tN o-,-no? $-\4 - C"feo ~~.N;) . .'{ - 3tJ ~ b 5ANITA(t~ SC:WER 9UANTITY ~EAS UNIT PRIC~ TOTAL ----- -----~------ --------~----- 1,2iS.5~ LF 15.64 18,852.23 811 pvc SDF.~5 SWR 11 J 481. 31 12'-14' 647.02 LF 17.74 1,183.55 811 p1iC S~R35 SiP. H'-lb' 71.~~ LF ZH.59 srD SAN MANHOLES @'-E' 11.28 EA 1,L11.42 12,225.67 HAMHOLE D=FTH avE~ g' 4a.~9 LF 81.34 3.,911.81 9:lH~ Pile SERIJ1!:E WYE 38.0~ EA 59.2ij 2,252.75 4" ?VC 5DR26 S;JR SERVICE 1,393.0e LF 8.12 UJ306.28 4. P:iC SDP.26 Sf?)' R I SEP: 14.50 IJF 11. 27 163.~b CONNECT Hi E1IsnN e 2.~~ EA a4il.~e 1,68e.B~ BEDDING MATERIAL 1Ja5a.~~ H~tLI10 TN 12.52 TELE~I5E SEWER LINE 1.990.21 1,1,5.00 LF L~~ S~CT!QN TOTAL sue-iOTAl K ; , 6b,J'6.66 t.~tZl1iii!~iiIJtlill!i***~:IJii4~i.**4:IJiijii*~'.:lliit~i W ATt::.R.M /tIN ea D!P !.002.3a Lf 19.77 19Jel1.a4 CL52 iliAERHA!N j'"'j ~" ---.. 18,~17.~1 61: DIP wATER"AIN 1.1 ~C'i. k'0 LF 16.97 P.5/9 faijE 1 EXHIBIT A IICEJJIj) i1AY 1 3 lS98 5a9/96 MRY 13 ~96 09:24 SIENNR CORP FROJECT ~A"E: Ct.2... r d i V\ Cl \ R ,-J3e rr:M QUANTITY H'iDRANT itiJ6ATE VALVE MEAS U~!T PRICE TOTAL ----- ------------ -----------~-- 3.g0 EA lt783.95 5,3~1.S5 SALVAGE i IN3TALL HY~ 2.ae EA 1,~~0.~~ 2,lae.a0 811 eAr:: VALVES it BOZES 2.90 EA 55~.23 iJ100.4il till Sfl.TE vAL \'Es &: BOXES 1.~0 E" ~\1B. ~~ 418.95 '.:HTINSS 2, 331. 57 1,g66.0~ lB 1.25 CDP.?ORAT10 N COCKS 22.~~ EA 52.5il 1,155.~0 I" CORPS WiSADDLES ! .131. 9E 16.90 EA 7~,75 111 CUF,S SlOPS & alj~E= 3e.~0 Eli 99.59 3~7S~.jl 1" ~ COFPER SERVICE 1,393.0ft LF 3.14 E , 3~~ . ~4 CONNECT TO EX 1ST 63E.8!d 2.il0 :A 31~.a9 ~EDD rNG MATERIAL 1,e;~.~0 !B!!. ~0 TN ii~ . 5~ SECTION TOTAL SUB-TOTAL H ~ i 6~.018.3b IlittIIIJiilit~i~(:JI~~i"IIJI'~~~t~~litl 12~ ~CP c16.~0 LF 23.33 14J!71.~0 STM SEWER CL5 Lall RCP 5TH SEWER CL5 1Za.i~ LF 26,]3 ~.2~7.~6 43" DtH ~!.l~p /'tANHGL: L ~3 EA Zs41~.ai 2,41S.!!!il P.6/9 41M Pa\jEJ 2 EXHIBIT A RECEIVED MAY 1 3 lJlSQ MRY 13 '96 09:24 SIENNR CORP PROJECT N~:;E; Ca.. rd \ Y\~ \ P.7/9 5/~9/96 f\ ~ d~ e 4 Tt\ Page 7' ,j ITE~ QUANTITY MEAS UNIT PRICE TOTAL ~8~ DIA STORM ~ANHOLE S.,,~ EA 1)294.20 6)47\L99 EXHIBIT A STD CATCH BHS1~S 1."0 Eft 947.1~ 947 Il~ 1.00 Eft 668.85 668.85 Ii m",t IE J J}; ] f.t . 'I ... ~ 11] 12 a ::-\ . - './I "",,,A La~ EA 262.50 2b2,~~ 1311 AFRON WIrS CDNNEcr TO EXI5THi G CL3 RIP nHr ;i/BLANKET 10.Jt1 CY 52 . 5~ 525.~e MOBrLE~T! 0-1 I; 1.00 LS 1,5:5,0~ 1,515.~0 SECTION ruTAL SU2-TOTAL I ~ $ 39,~~4.30 llt~*tllllilii*;ttllllli'*;*;tJJls.l.*i:lit!.i~*~~;;:!t!lll PROJECT Tar~l , 16e!85~.34 MAY 13 '96 09:24 SIENNA CORP P.8/9 CARDINAL RIDGE 4TH ADDITION 5/09/96 PRIOR LAKE, "N Page 1 STREETS StRf.ST CONSfftl\.CTloN INCLtADING SIDEWALK ITEM QUANTITY HEAS UNIT PRICE TOTAL ---------- -------- _____ w___________ ______________ SU8GRADE 7,93'.00SY .35 2.777.60 EXHIBIT A PREP CLASS 5 7,936.00SY 2.80 22,220.80 6' (looteR USHED) 2331 BIT 6J404.00 SY 3.40 21,773.60 BASE, 318 2.5 "NOOT 6,404.00 SY .08 512.32 lET! ~ m .., ~ 0:-=-.-,; .: . ~ ) 1 ,~.~-l . ~( u.; ~ ~f :.~.. .J 2357 TACK COAT 2331 BIT 6.404.00 SY 2.28 14,601.12 WEAR, 41A 1 112' SURMOUNT 3,796.00 LF a.50 24,674.00 cONe. CURB i GUT 8-618 139.00 IF 10.00 1,390.00 CONe. CURS & CONCRETE 142.00 Lf 15.00 2,130.00 VALLEY GUTTER ADJUST 4.00 fA 70.00 280.00 CATCH 8ASINS ADJUST 3.00 fA 192.50 577 .50 GATE VALVES ADJUST 10.00 EA 250.00 2,500.00 MANHOLES 5'WIDE BY 1,345.00 LF 16.50 22.192.50 4A SIDEWALK SILT 3,856.00 LF 1.25 4,820.00 fENCE 8EHI NO CURB REl10VE & 2.00 EA 330.00 660.00 SALVAGE 8ARRICAO MAY 13 '96 09:25 SIENNA CORP CAROIN~L RIDGE 4TH AOOITION 5/09/96 PRIOR LAKE, HN STREETS P.9/9 Page 2 HE" QUANTITY "EAS UNIT PRICE TOTAL ---------- --~--.-- ----- ----..------ -------------- SAU CUT 5&.00 LF 3.50 196.00 EXHIBIT A PEDESTRIAN RAMP 1. 00 fA 140.00 140 .00 PROJECT TOTAL S 121,.45.44 II I ~ ~ Z '1 i:J t1AY 1 3 lBS8 EXHIBIT B No. DATE: TO: City of Prior Lake 16200 Eagle Creek Avenue SE Prior Lake, Minnesota 55372 Dear Sir or Madam: We open Irrevocable Standby Letter of Credit No. (Spell out dollar amount 00/11 USDLRS) in the amount of USD $ In favor of yourselves, FOR THE ACCOUNT OF: Individual Name for Name of Development Developer's Address Expires:( date) at our counters. This is a clean Letter of Credit available against drafts drawn at sight on (Bank Name) (address) Minnesota bearing the clause: Drawn under Standby Letter of Credit Number of (bank name) accompanied by this original Letter of Credit for endorsement. SPECIAL CONDITION(S): 1. Drafts must purportedly be signed by the Mayor or the City Manager of the City of Prior Lake. 2. This letter of Credit is automatically renewable without amendment for an additional one year period from the present expiration date, unless (90) ninety days prior to said expiration date we shall notify you in writing, by Registered Mail, that we have elected not to renew this Letter of Credit. But in no event shall the expiration date extend beyond ( date) Payment will be made at the counters of (bank name) Minnesota. This credit is subject to the Unifonn Customs and Practice for Documentary Credits (1983 Revision) International Chamber of Commerce Publication No. 400. Unless otherwise stated, all documents are to be forwarded to us by mail, or hand delivered to our customers. Documents to be directed to: (Bank name and address) We hereby engage with drawers and/or bona fide holders that drafts drawn and negotiated in confonnity with the tenns of this credit will be duly honored upon presentation. (Bank name) Authorized Signature Authorized Signature CRDRDG4.DOC MRY-08-1996 16:06 JAMES R HILL, INC. EXHIBIT C AREA SUMMARY-CARDINAL RIDGE 4TH LOT 1 2 3 4 5 1 2 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 2 3 4 5 6 7 8 9 10 11 12 OUTLOT A OUTLOT 8 OUTLOT C BLOCK 1 1 1 , 1 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 AREA (sq.ft.) 13,127.8 12, 1 S 1 .2 12,000.0 13,225.2 13,370.0 12,027.3 12,090.6 12,044.0 12,997.3 , 2,623.6 13,120.8 14,087.2 14,461.9 12,923.8 13,871.3 12,253.8 14,020.2 14,427.3 , 3,543.3 12,483.3 11 ,423.3 11,'08.7 11,668.5 12,000.0 13,327.3 14,219.2 13,940.5 13,339.5 13,871.5 12,692.6 12,370.5 14,926.5 13,301.2 11,718,6 11.600.0 452,367.8 453,199.0 690,433.6 1 , 2.208.9 1,255,841.5 612 890 6244 P.02/02 TOTRL P.02 o ?- m - :J: >< W , i = .... :J I , U~! ~I' . L. ~t: S.~ \\, "L_ lb ,. -< ---=~ ~~ ... I - ' I j I!/ ~ ~ tl ~ :'1 ~f ; ~ I, \ ~I I~ ~ I! \ J ~^ " "' . z o ~ o o <( I 5: ::l o lL W 8 a: -I <( Z o a: < U ,," J." " <...) ,," --.:" ( - ...;<.~.. '- - c -, "\ I ...s" (..> I ~ ) I /......... "" .<- .0"" (~ '9/ " ~..., ........ )ff -1 / ( I ~\'~> r<:t ......."'OJ.. \ \ "9~,,. \ 1. \ \ ,~ \ \ \ \ 1 I I \ G5 I ~I \ ~ I I I , J J .." " / / / ".jI," / "'~ '-.,// '" . \" / '>0, /;~ ,,/ '...;,"') / .>:~ , ""=l<. .. / ",,'~ " .. / / " ." #,~,tt.~ ,,~ \ '&~~ \~ \ ~ __ \J~I"') I I --~J-/ J ( s.J"~ _ _ ,~~, A4'~ ....... ,.:," 4"...,0- " ~ " "(,."l " ... ::~"'IP' '\ ~~ \ ijoA ,,~- ,~,;,; ~ \ " \ I.;' \ "~ '\ '\ ~!" ~. I!!~! ". " ~~ i'i~ " l;;O~ Zul "< )o:ll~ ~~ " "'~:- J., ~~z -: ,,~ ~l!:;:; 1lIC11 ........ CeCIl ~e ~ ....... I~i'd · ~~3"' " II~.'''~ ~ ~.2' " - ~i~ III ;~ I~ii~ i91l1~~! ~~ i~U4i !:3jj5"'!! - !~I ~~~~ 1~~ Ill; U;!i~ .il:~:;!~~ ~~ i Ii! . i! ~ a HSU ClII_. SI?q , I' If ,'~ i'...~ - . .L '0 % < l- e ;t a 1 \1 \ ..WI._N ..'1" v~ ~.. \... ~ '\"" i , . -~-' , ...~ \ \ '? ,\!!~ ',~\ " )) .~. (,/) f- W W I (,/)(,/) 1"')1- o ~....J Oz 1"')0 f-:::! w<( WI- :J:w (,/)0 we:::: wo (/]~ "(~ 0, ~~ .,.... <) '0 "J. ...'1 I.... "'C> c~<.. '_l III .... e .,:! is =~ ,.:Ii ~.., I~!I \!s~~~ i\!si$ uta51 j[:J!" ~....~; ...!:t~ I I6.Jt ' ,. 2"Il8'S4..J I I I I _--1- I --r-- !! ;:: .. i ..... ~ "" 3~~ ~~~ ~g .:I I :il t! ;:F :II ~~~ ~~ . ~ Q~'" 1 >...a. :::-~ I 1~I~i~ d~ :~;!; lilra - ~ i ! i of~"a (i ~<li ~e ~ ------- ~ ~~~ U~l!lili5 !I ~~i!~ ~ ~~9liE!" '<2"' ili;Sii?c~~ ~ -- 1. 1II~~ ~'5a~ ~ ~f i~~i~! :! ~ I illsloW l!l ~ ~~ ~~ . I i;q~; ; s i I ....~ ,. I "';9 I 1II...~~ s. ~!! :j;: !! 1;1 li: (;! Slll!j!; !~S ~ ~ . ~ B Z I ~ I I of ! D 0 ~ t- ::) - f2 m --l - ~ ::r: - <( >< I- W a: W ~ 0 c ~ ~-- .-/' ( ,;,,.-~---, """", " '\ Q~ ) ~~ '.. EXHIBIT D DEVELOPER AND CITY COST SUMMARY The following is a summary of developer and City costs for Cardinal Ridge 4th Addition. The net area of the final plat is 452,368 square feet or 10.38 acres. DEVELOPER COSTS 60/0 Administration Fee Trunk Sewer and Water Fee Stormwater Management Fee Collector Street Fee Traffic Signs $ $ $ $ $ DEVELOPER OWES CITYffOTAL $ CITY COSTS Storm Sewer Costs (Trunk Reserve) $ CITY OWES DEVELOPERffOT AL $ The following is an itemization of the project costs: Sanitary Sewer Watermain Storm Sewer Street Construction including Sidewalk TOTAL PROJECT COST CRDRDG4.DOC 17,238.29 36,330.00 75,997.82 15,570.00 200.00 145,336.11 30.444.30 30,444.30 $ $ $ $ 66,396.68 69,018.36 30,444.30 121.445.44 $ 287,304.78 CRDRDG4.DOC EXHIBIT D DEVELOPER COSTS Determine 60/0 Project Administration Fee: TOTAL CONSTRUCTION COST Developer 6% Administration Fee: 60/0 of $287,304.78 Determine Amount of Letter of Credit: 1.25 x Total Construction Cost 1250/0 ($287,304.78) Determine Developer Trunk Sewer & Water Fee: Net lot area is 10.38 acres $3,500/acre x 10.38 acres Determine Developer Stormwater Management Fee: Net lot area is 452,368 sq. ft. $0.168 /sq. ft. x 452,368 sq. ft. Determine Developer Collector Street Fee: Net lot area is 10.38 acres $1,500/acre x 10.38 acres Amount Developer owes for Traffic Signs: 2 sign @ $1 OO/sign CITY COSTS Developer's Storm Sewer Cost (From Exhibit A) TOTAL STORM SEWER COSTS $ $ $ 287,304.78 17,238.29 359,131.00 $ 36,330.00 $ 75,997.82 $ 15,570.00 $ 200.00 $ 30,444.30 $ 30,444.30 EXHIBIT E SPECIAL CONDITIONS 1. 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 light system until the City accepts the project, at which time the billing shall be transferred to the City. 100 or 150 watt high pressure sodium lights in traditional or cobra-head style (as approved by the City and the utility) shall be the standard for new subdivisions. Where a portion of the development is already lit, new lights shall match in style and wattage those already in place. The Developer shall provide a street light system in accordance with Exhibit H. The street light plan must be acceptable to the City Engineer and in accordance with Exhibit H. 2. The Developer is responsible for installing all the lot corners by November 30, 1996. All lot comers shall be set and visible on this date. EXHIBIT F (1) FIRST COMPLETION DATE Bond No. PERFORMANCE~ARRANTYBOND KNOWN 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 ($ ) for payment whereof Principal and Surety jointly and severally bind themselves and their respective heirs, successors, assigns and legal representatives firmly by these presents. WHEREAS, Principal has heretofore deposited with the City of Prior Lake, Letter of Credit to guaranty the completion of payment for and maintenance of the public improvements as set forth in the Developer's Agreement dated between Principal and Obligee for including, but not limited to, _ Sanitarv Se\ver. Watermain. Storm Sewer and Streets (the Public Improvements); and WHEREAS, 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 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 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, certified, postage prepaid, addressed to any party at its address hereinafter set forth. SIGNED, SEALED AND DATED this day of ,19---:. In the presence of: Principal By: Surety By: Attorney-in-Fact EXHIBIT F (2) SECOND COMPLETION DATE Bond No. PERFORMANCE~ARRANTYBOND KNOWN BY ALL PERSONS BY THESE PRESENTS, that we (Principal) and (Surety) are held and firmly bound unto the (Obligee), in the amount of_ and ~IOO 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. WHEREAS, Principal has heretofore deposited with the City of Prior Lake, Letter of Credit to guaranty the completion of payment for and maintenance of the public improvements as set forth in the Developer's Agreement dated between Principal and Obligee for including, but not limited to, _ Sanitarv Sewer. Watermain. Storm Sewer and Streets (the Public Improvements); and WHEREAS, 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 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 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 Warranty Period, and cover all obligations including attorney fees, administration 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. F or 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 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, certified, postage prepaid, addressed to any party at its address hereinafter set forth. SIGNED, SEALED A1"JD DATED this day of , 1 9 ----=- In the presence of: Principal By: Surety By: Attorney-in-Fact EXHIBILG DEVELOPER INSTALLED AND FINANCE IMPROVEMENTS AND COMPLETION DATES The items checked with an "x" below are the DEVELOPER INSTALLED AND FINANCE IMPROVEMENTS. CHECKED x x x x x x x x x COMPLETION DATE August 15, 1996 August 15, 1996 November 30, 1996 November 30, 1996 November 30, 1996 July 15, 1997 July 15, 1997 November 30, 1996 City Responsibility Not Required Not Required Not Required Not Required July 15, 1997 IMPROVEMENT site grading, pond construction, drainage & erosion control street grading and drainage subdivision monuments utilities (sanitary sewer, watermain, storm sewer & service lines) streets (concrete curb & gutter, gravel base & first lift of bituminous pavement) wear course lift of bituminous pavement boulevard restoration street lights street signage site landscaping reforestration wetland mitigation right of way acquisition outside of Plat sidewalks/trails EXHIBIT H RESIDENTIAL STREET LIGHTING POLICY BACKGROUND: The City intends that this street lighting policy promote the safe travel of city streets in a manner both fair and affordable to the City and its residents. Residential street lighting promotes pedestrian and traffic safety to the extent that the City shall approve street lighting where warranted by such concerns. Lighting requests shall come either by recommendation of the City Engineer or by resident petition. The capital costs of residential street lighting shall be the responsibility of those residents, or any portion of those residents, determined to be affected by the light. NEW SUBDIVISIONS: All lighting plans require approval by the City and the utility responsible for street light operation and maintenance. In new subdivisions street lights shall be placed at intersections, every 300 feet between intersections where intersections are more than 600 feet apart, and at the ends of cul-de-sacs where the distance from said end to the intersection of the cul-de-sac where the street is greater than 300 feet. Within their developments, developers shall also install lights to City standards at the intersections of residential streets with collector streets. 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 light system until the City accepts the project, at which time the billing shall be transferred to the City. 100 or 150 watt high pressure sodium lights in traditional or cobra-head style (as approved by the City and the utility) shall be the standard for new subdivisions. Where a portion of the development is already lit, new lights shall match in style and wattage those already in place. In cases where developers wish to install more lights than warranted by City policy, or wish to install non-standard lights, monthly operation and maintenance becomes the responsibility of the development's residents through their homeowner's association or similar organization. The City will not take over such non-standard systems, though City approval shall stilI be required. EXISTING SUBDIVISIONS: Where traffic safety clearly warrants, a street light may be placed upon the recommendation of the City Engineer's office. The basis of such warrants shall be a minimum Average Daily Traffic of 2000 vehicles or a layout such that, in the City Engineer's estimation, significant improvement in safety might be obtained by the placement of a street light. Since the benefit of such installations extends to the City as a whole, these will be done at City expense. When residents request additional lighting for their neighborhoods, they must do so by petition - signed by 60% of the neighbors affected by the proposed light. The affected area shall be 100 linear feet on either side of the proposed light, on both sides of the street. The placement of the proposed light shall be specified in the petition. Petitioners shall approach the City prior to circulating their petition to obtain direction as to where street lights are warranted for their neighborhoods. Lights shall be approved only as they meet the following warrants for existing subdivisions: intersections, between intersections at intervals of 300 feet where the distance between intersections is greater than 600 feet, and at the ends of cul-de-sacs where the distance from said end to the intersection of the cul- de-sac with the street is greater than 300 feet. If approved, each street light shall be purchased by the affected residents. Payment shall be made prior to the installation of the light and shall include the cost of poles, fixtures, underground wiring, and all appurtenant work. The method of payment shall be as directed by the City Finance Department. The City shall assume operation and maintenance costs for a light from the time it is energized by the utility. In existing developments new lights shall match in style and wattage those already in place. If no lights be currently in place, then 100 or 150 watt high pressure sodium lights in cobra-head or traditional style shall be the standard. MRY 16 ?96 10:06 SIENNR CORP P.2/3 YK Ii CORPO~....TION Suite 608 . 4940 Viking Drive. Minneapolis, Minnesota 55435 . 612-835~28a8 May 16,1996 Mr. Frank Boyles City of Prior Lake 16200 Eagle Creek Avenue SE Prior Lake, MN 55372...1714 Re: Cardinal Ridge Fourth Addition Dear Frank: I just finished a phone conversation with John Wingard, Assistant City Engineer, regarding the letter of credit requirements for our proposed Cardinal Ridge Fourth Addition. What is at issue is the new City requirement that we deliver the actual letter of credit and not some form of Bank letter of intent to the City prior to final plat consideration by the City Council. This requirement becomes a virtual impossibility given how most development loans are placed and how raw land is purchased for development. I am seeking a reconsideration by the City. The problem is two-fold for Cardinal Ridge. First, our lender, Century Bank, needs absolute assurance that the plat has received City Council approval prior to closing our loan. Without that approval we have only horse pasture and there isn't collateral to secure the letter of credit. Second, since the Fourth Addition is being carved out of a larger parcel, both the Bank and the land seller have no absolute assurance that the City will approve the division of the parcel into the Fourth Addition and the residual to be held for the future Fifth Addition. Without that assurance our title insurance provider will not insure the lender. In summary, we cannot complete the financing and purchase transaction. We are occasionally requested to provide a City with a conditional Letter of Intent to Provide Security and our Bank is willing to do so for Cardinal Ridge Fourth. It seems to me that the City has excellent control over the final platting process, given that it doesn't have to sign the plat until it has the letter of credit and other cash deposits Planners . Developers . Contractors ~ (C) 6-7-16: 6-7-17: in the vicinity. The development contract shall require the subdivider to make an escrow deposit or, in lieu thereof, furnish performance bonds as described in Section 6-7-15, (A)-(C), to insure the improve11ents will be completed in accordance with the development contract. Acceptance of improvements by the City Engineer may be subject to such reasonable conditions as he may impose at the time of acceptance. The subdivider through his engineer shall provide for competent daily inspection during the construction of all improvements. Asbuilt drawings with service and value ties on reproduceable mylar shall be delivered to the City Engineer within one hundred twenty (120) days of completion of the improvements together with a written certification from a Registered Civil Engineer that all improvements have been completed, inspected and tested in accordance with the a roved n" . .. er. FINANCIAL GUARANTEE FOR SUBDIVIDER INSTALLED UTILITIES: In the event the Subdivider chooses to install the improvements, then the development contract as set forth in Section 6-7-14 above shall require the subdivider to make an escrow deposit, furnish a performance bond, make a cash deposit or file a letter of credit, at the option of the City, prior to final plat approval, as follows: (A) A cash escrow deposit shall be made with the City Finance Director in a sum equal to one hundred twenty-five percent (125~~) of the project cost as estimated by the City Engineer. (B) Performance Bond. In lieu of making a cash escrow deposit, the subdivider may furnish the City with a performance bond with surety and conditions satisfactory to the City in a sum equal to one hundred twenty-five percent (125~~) of the City Engineers estimate of the project cost. Letter of Credit. The subdivider may file with the City an irrevocable letter of credit. The letter of credit shall be in a form acceptable to the City Attorney. The letter of credit shall be in an amount equal to one hundred twenty-five percent (125~~) of the total project cost as estimated by the City Engineer. FINANCIAL GUARANTEE FOR CITY INSTALLED UTILITIES AT THE SUBDIVIDER'S REQUEST: In the event the City installs the improvements as per Section 6-7-14 above. a cash deposit will be required. The subdivider will be required to deposit with the City an amount equal to twenty-five percent (25%) or more of the total project cost. The total project cost will be determined by the City Council. The development contract shall provide that the City of Prior Lake will install the improvements and assess all benefiting lots in accordance with the policies on file in the office of the Director of Finance. WARRANTY/MAINTENANCE BOND: The City shall require where appropriate a warranty/maintenance bond of a subdivider in an amount equal to the original cost of the improvements which shall be in force for one (1) year following acceptance of any required improvements and shall guarantee satisfactory performance of such improvements. 33 t-j/L-