HomeMy WebLinkAbout8D - Assign Wilds Dev Agt
DATE:
8D
SUESAN LEA PACE, CITY ATTORNEY
CONSIDER APPROVAL OF TRANSFER OF THE WILDS
DEVELOPER'S AGREEMENT FROM PRIOR LAKE
DEVELOPMENT L.P. TO JIM STANTON, d.b.a.
SHAMROCK DEVELOPMENT
MAY 20, 1996
AGENDA #:
PREP ARED BY:
SUBJECT:
INTRODUCTION:
This Agenda item asks the City Council to approve and authorize
the Mayor and City Manager to execute an agreement between the
City of Prior Lake and Shamrock Rec Properties Inc. relating to the
Planned Unit Development of the Initial Phase and the Sterling
South Phase of a 580 acre project commonly referred to as The
Wilds.
BACKGROUND:
On October 22, 1993, the City entered into a Development
Agreement with Prior Lake Development, L.P. ("Developer") for
the development of The Wilds. The Developer is in default of the
Development Agreement, has been provided notice of the default,
has failed to cure the events of default and has sold the real
property comprising the Initial Phase and the Sterling South Phase
to Shamrock Rec Properties, Inc. ("Shamrock").
The Development Agreement with Prior Lake Development
required the Developer to provide the City with security
(Irrevocable Letter of Credit, $1 million; payment bond
$4,048,495.00 and performance bond $4,048,495.00). The
security generally is intended to provide resources to complete the
Developer Installed and Financed Improvements (See definitions
in Agreement) and to secure compliance with the terms and
conditions of the Development Agreement. Mr. Harris Duininck
posted the security on behalf of the Developer. The payment bond
expired and was not renewed despite our notices of default. The
Irrevocable Letter of Credit (IROC) and the performance bond
remain in place. The IROC expires on June 30, 1996. The City
162(6).vfla~reek Ave. S.E.. Prior Lake, Minnesota 553?2-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
RECOMMENDATION: Alternative No. 1. Approve and authorize execution of Agreement
with Shamrock for Development of The Wilds. I would like to
recognize the exeptional efforts of Larry Anderson in negotiating
this Agreement. Without his assistance this effort could not have
been accomplished.
FINANCIAL IMP ACT: Financing Impacts:
1. Shamrock has agreed to pay all legal fees incurred by the City
in connection with the negotiation and preparation of this
Agreement; and to that end has tendered an initial deposit of
$15,000 with the City.
2. Shamrock has agreed to pay the outstanding fees of the City's
consulting engineer, MSA Consulting Engineers, in the amount
of$23,105.34.
3. The City receives $90,000.00 now and incremental installments
towards the cost of improvements to County Road 83 as each
final plat is approved. The foregoing replaces the Confession
of Judgment against Richard Burtness.
4. The City receives a new IROC in the amount of $500,000.00
and a warranty bond in the amount of $750,000.00 to secure
the Developer Installed and Financed Improvements.
5. The City releases to Harris Duininck the $1 million IROC
provided to the City under the October 22, 1993 Development
Agreement conditioned upon completion of 1-4 above.
ACTION REQUIRED:
The action required is as follows:
1.
Make a motion and a second to acknowledge and accept
written consent to be provided from Harris Duininck
concerning City entering into Agreement with Shamrock
for development of The Wilds.
Make a motion and a second to approve the Agreement
with Shamrock Rec Development, Inc. for The Wilds and
authorize Mayor and flY Manager to execute Agreement.
~J ,/
2.
AGWll.OS.OOC .
4
CITY OF PRIOR LAKE
AGREEMENT FOR PRIVATE DEVELOPMENT
THE WILDS PLANNED UNIT DEVELOPMENT:
INITIAL PHASE AND STERLING SOUTH
May 20, 1996
Drafted by:
Campbell, Knutson, Scott & Fuchs, P .A.
1380 Corporate Center Curve
317 Eagandale Office Center
Eagan, Minnesota 55121
(612) 452-5000
Table of Contents
and
Index to Exhibits
ARTICLE 1.
Definitions and Rules of Interpretation.................................................................... 1
ARTICLE 2.
Representations and Covenants.............................................................. 5
ARTICLE 3.
Commitments of Developer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
ARTICLE 4.
Government Approvals......................................................................... 7
ARTICLE 5.
Construction of Phases.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
ARTICLE 6.
Developer Installed and Financed Improvements........................................ 8
ARTICLE 7.
Insurance and Indemnification............................................................... 12
ARTICLE 8.
Improvements to County Road 83........................................................... 13
ARTICLE 9.
General Provisions.............................................................................. 13
Exhibit A - Legal Description
Exhibit B - Letter of Credit form
Exhibit C -
Exhibit D - Policy for Private Development Projects
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CITY OF PRIOR LAKE
AGREEMENT FOR PRIVATE DEVELOPMENT
THE WILDS PLANNED UNIT DEVELOPMENT:
INITIAL PHASE AND STERLING SOUTH
THIS AGREEMENT, made this _ day of , 1996, by and between the
CITY OF PRIOR LAKE, a Minnesota municipal corporation (hereinafter "the City"), and
SHAMROCK REC. PROPERTIES, INC., or its assigns SHAMROCK DEVELOPMENT, INC., a
corporation (hereinafter "the Developer").
WHEREAS, Developer proposes to develop certain property by means of a Planned Unit
Development (PUD) consisting of a golf course, a variety of residential homes, one hotel, two
restaurants, and a small retail commercial center on approximately 580 acres of land (the "Project")
located in the City of Prior Lake legally described in Exhibit A of this Agreement (the "Property");
and
WHEREAS, on October 22, 1993, the City and Prior Lake Development, L.P., a Minnesota
limited partnership, entered into a Development Agreement for the project commonly referred to as
THE WILDS; and
WHEREAS, Prior Lake Development, L.P., has sold the property constituting THE WILDS
project to Shamrock Rec. Properties, Inc.; and
WHEREAS, the City desires to enter into an Agreement with Shamrock Development, Inc. as
the Developer of THE WILDS Planned Unit Development, subject to the terms and conditions of this
Agreement and the deposit of security; and
WHEREAS, the City desires to assure the duties, obligations and responsibilities of the
Developer are clearly defined and described; and
WHEREAS, the City and the Developer agree that to assure clarity with regard to the duties,
obligations and responsibilities, the City and the Developer should enter into this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants, promises and guarantees
contained herein, the sufficiency of which is not disputed, the parties hereto agree as follows:
ARTICLE 1.
DEFINITIONS AND RULES OF INTERPRETATION
1.1 Definitions. In this Agreement the following terms shall have the following respective
meanings unless the context of this Agreement clearly requires otherwise:
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A. "Agreement" means an Agreement to Private Development between the City of Prior
Lake and Shamrock Rec. Development, Inc., as the same may be from time to time modified,
amended or supplemented.
B. "City Council" means the Prior Lake City Council.
C. "City Engineer" means the City Engineer of the City of Prior Lake.
D. "City Finance Director" means the City Finance Director of the City of Prior Lake.
E. "Comprehensive Plan" means the Year 2010 Comprehensive Land Use Plan for the
City of Prior Lake, as adopted by the City Council on December 18, 1995.
F. "Construction Inspection of Developer Installed and Financed Improvements" means
the inspection of Developer's Installed and Financed Improvements by City Engineering
Personnel or by consultant engineers hired by the City, the costs of which are to be either
reimbursed to the City by the Developer, or paid directly to consultant by the Developer, as
the case may be.
G. "Cost of Developer Installed and Financed Improvements" means the cost of Developer
Installed and Financed Improvements as estimated by the City Engineer, in the City
Engineer's sole and absolute discretion, in the Developer and City Cost Summary attached as
Exhibit C of the Development Agreement.
H. "Developer" means Shamrock Rec. Properties, Inc. or its assigns Shamrock
Development, Inc.
I. "Developer Costs" means the costs to be paid by the Developer to the City as set out
in the Developer and City Cost Summary attached as Exhibit C of the Development
Agreement.
1. "Developer's Installed and Financed Improvements" means the construction work to be
performed by Developer on the Property as shown on Exhibit C of the Development
Agreement and including, but not limited to, the trees, topsoil and sodding, trails, sidewalks
and driveways, street lighting, streets, curb and gutter, water supply, sanitary sewer, storm
sewer/storm water improvements, drainage, Permanent Street Improvements and Traffic
Signing Improvements, the plans, specifications, drawings and related documents, and in
accordance with the policies and ordinances of the City, and the final plans and specifications.
K. "Development Agreement" means the Development Agreement dated October 22, 1993
by and between the City and Prior Lake Development, L.P.
L. "Event of Default" means, whenever it is used in this Agreement, anyone or more of
the following events:
(i)
failure by Developer to timely pay all real estate taxes and special assessments
assessed with respect to the Property within the Project;
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(ii) failure by Developer to timely pay the City any money required to be paid
under this Agreement;
(iii) failure of Developer to timely construct Developer Installed and Financed
Improvements pursuant to the terms, conditions and limitations of this
Agreement;
(iv) failure by Developer to observe or perform any covenant, condition, obligation,
or agreement on its part to be observed or performed under this Agreement;
(v) transfer of any controlling interest in the Project by the Developer to an entity
other than an entity controlled by Developer, without the prior written approval
of the Council, which consent shall not unreasonably be withheld; or
(vi) failure to correct warranty deficiencies.
M. "Golf Course Owner" means Restan, L.L.C.
N. "Including" means including, but not limited to.
O. "Initial Phase" means the first phase of the Project approved by the City Council on
October 22, 1993, and which includes the Developer Installed and Financed Improvements set
forth in Exhibit C to the Development Agreement.
P. "Letter of Credit" means an Irrevocable Letter of Credit in the amount of Five
Hundred Thousand Dollars ($500,000.00) in substantially the form of Exhibit B.
Q. Metropolitan Council" means the Twin Cities Metropolitan Council, established under
Minnesota Statutes Chapter 473 and having jurisdiction over the Minneapolis-St. Paul
Metropolitan area as defined in Minnesota Statutes, Section 473.121, subd. 2.
R. "Special Conditions for All Phases" means the conditions as outlined in Exhibit H of
the Development Agreement.
S. "Permanent Street Improvements" means permanent street surfacing in accordance with
the policies and ordinances of City.
T. "Phase" means each phase of development of the parcels of land, which together
constitute the Project.
U. "Policy for Private Development Projects" means the policy for such projects adopted
by the City Council as may be amended in the form of the current policy which is attached as
Exhibit D.
V. "Project" means the proposed development by the Developer of certain property by
means of a Planned Unit Development (PUD) consisting of a golf course, a variety of
residential homes, rental cabins, one hotel, two restaurants, and a small retail commercial
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center on approximately 580 acres of land (the Project) located in the City of Prior Lake,
Minnesota legally described in Exhibit A of this Agreement.
W. "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 the City as the City may adopt from time to time.
X. "Sterling South" is the name of the subdivision within the Project containing a
townhouse development consisting of eighty-eight (88) units plus a common area lot.
Y. "Storm Sewer Improvements" means storm sewers, catch basins, inlets and other
appurtenances determined to be necessary by the City Engineer in accordance with the
policies and ordinances of the City as the City may adopt from time to time.
Z. "Street Improvements" means street grading, gravel base, and stabilizing, including
construction of boulevards and turf establishment in accordance with policies and ordinances
of the City as the City may adopt from time to time.
AA. "Subdivision" means the division of a parcel of land into two or more lots or parcels
by any means, including platting registered land survey. Where appropriate to the context,
"subdivision" shall relate to the process of subdividing or to the land to be subdivided.
BB. "Subsequent Phase" means any Phase other than the Initial Phase and Sterling South,
each of which requires that the City and Developer enter into a new Development Agreement
as to such Phase, and further requires Developer to comply with the "Special Conditions for
All Phases" set forth in Exhibit H of the Development Agreement.
CC. "Warranty Period" means a twelve (12) month period following the City Engineer's
acceptance of the Developer Installed and Financed Improvements during which time the
Developer is required to post an Irrevocable Letter of Credit and a Warranty (Maintenance)
Bond to assure that the Developer Installed and Financed Improvements were properly
constructed.
1.2 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.
1.3 Supplemental Definitions. Certain terms not defined herein, to the extent defined in
the Development Agreement, are intended to have the same meaning as the definition in the
Development Agreement.
1.4 Exhibits. All exhibits attached to this Agreement are incorporated by reference and
made a part of this Agreement as fully set forth herein.
1.5 Scope. This Agreement sets out the responsibilities of the Developer, Shamrock Rec.
Properties, Inc. and is drafted to describe the obligations and responsibilities of Shamrock Rec.
Properties, Inc. The Development Agreement dated October 22, 1993 and Amendment No.1 thereto,
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are incorporated by reference herein as a basis for further describing and clarifying the Developer's
responsibilities under this Agreement.
1.6 The recitals set forth above are incorporated and restated as if fully set forth herein.
ARTICLE 2.
REPRESENTATIONS AND COVENANTS
2.1 Representations and Covenants by Developer. Developer represents and covenants
that:
A. Developer is a corporation duly organized, existing, and in good standing under the laws
of the State of Minnesota, and is authorized to do business in the State of Minnesota and has
the power to enter into this Agreement and to perform its obligations hereunder, and by
proper corporate action has been duly authorized to execute and deliver this Agreement.
B. Developer shall be responsible to the City to assure that the Developer Installed and
Financed Improvements are constructed, operated and maintained in accordance with the
terms of this Agreement, in conformity with local, state, and federal laws and regulations and
will cause all Developer Installed and Financed Improvements, and all associated plant and
equipment, to be kept in good repair and condition.
C. Developer represents and warrants that neither the execution nor 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 the City with respect to any litigation commenced with respect to the Property
or the Developer Installed and Financed Improvements. Developer 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.
D. Developer will obtain all required permits, reviews, licenses, actions, and Development
Plans for all the Phases of Developer Improvements.
E. Developer hereby acknowledges that the City has adopted Ordinance 93-23 amending
Section 5-5-11 of the Prior Lake City Code for the purpose of establishing a Mixed Use
zoning classification for the Project. Developer and City intend that the site of certain
nonresidential uses, including but not limited to, hotels, restaurants, village shopping, and
convenience retail, as shown in the Development Plan attached to the Development
Agreement as Exhibit D, will be zoned Mixed Use and incorporated into the PUD. Developer
hereby agrees that it will develop only those nonresidential uses established in the
Development Plan as approved by the City. Any other nonresidential development shall
require approval of an amendment to the PUD prior to commencement of construction of such
other nonresidential development. An amendment of the PUD, which does not change
density, floor area, location and placement of facilities, land use or matters of a similar nature
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is a minor amendment. A minor amendment of the PUD may be processed and approved by
City Staff and affirmed by the City Council. Any amendment to this Agreement, other than a
minor amendment, shall be in writing and executed on behalf of the City by the Mayor and
City Manager, after approval by the City Council.
F. Developer hereby acknowledges that the uses for the Property are as specified in Exhibit
G to the Development Agreement which designates the zoning of the residential (R-l),
regional commercial (B-3) and neighborhood commercial (B-1) areas within the Project. The
allowed uses on the Property shall be consistent with the listed uses within these zones as of
the date of the Development Agreement, and as further defined and established under the
Development Plan submitted with the application for approval of the PUD, as may be
amended from time to time upon approval of the City Council.
G. Developer hereby acknowledges that the final plat contains a number of outlots for which
development densities have not been specifically established. Therefore, the final density of
the Project shall be subject to approval by the City Council of future plats which establish the
number of lots and development densities for such outlots.
H. Developer must enter into an Agreement with the City for the Preserve/Outlot L within
sixty (60) days of the date the City Council approves this Agreement. This provision will not
apply if, prior to the expiration of the sixty (60) days, Developer makes application to the
City to replat the Property.
2.2 Representations and Covenants by City. City represents and covenants that:
A. Pursuant to the provisions of Minnesota Statutes, Section 462.358, subd. 3c, unless
Developer's rights hereunder have been terminated pursuant to the provision of this
Agreement, no amendment to the Comprehensive Plan or other official control that is
inconsistent with the Development Agreement and this Agreement, or that would curtail any
development contemplated by this Agreement, shall apply to the Project for a period of three
(3) years, subject to the City's remedies upon Event of Default as set out in Section 9.1 of
this Agreement. This provision shall not prevent amendments to the Comprehensive Plan or
other official land use controls which are consistent with this Agreement and which would not
curtail development contemplated by this Agreement where such amendments are required by
law or any other changes in the system plans of the Metropolitan Council.
B. The City shall be responsible for maintenance of the Booster station and lift station after
the acceptance of these Developer Installed and Financed Improvements and the expiration of
the warranty period.
ARTICLE 3.
COMMITMENTS OF DEVELOPER
3.1 Completion of Construction. Developer commits to complete the Developer Installed
and Financed Improvements for the Wilds Initial Phase and Sterling South on or before August 1,
1996, with the exception of the bituminous wear coarse for Wilds View and Wilds Ridge, from the
intersection of Wilds View and Wilds Ridge to the North, the cul-de-sac on Wilds Lane, and turn
lanes on County Road 83, which shall be completed July 1, 1997.
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3.2 Protective Covenants. The Developer shall prepare a private declaration of
covenants, conditions and restrictions (Declaration of Covenants) to be filed of record against the
Property. The covenants will, among other matters, require and ensure that all common facilities,
amenities and spaces within the PUD, including, but not limited to the I8-hole golf course, trails,
parks, open space, wetland areas, street medians, cul-de-sacs, center islands, and water quality ponds
will not be substantially altered, modified, or replaced without prior approval of the City, ordinary
maintenance, repair and replacement excepted. The Declaration shall contain a "no cut/no mow"
restriction which shall prohibit any person from cutting, mowing, landscaping, or undertaking other
Developer Installed and Financed Improvements in areas of steep slopes or areas protected by
conservation restrictions (other than certain noxious weeds as defined by Minnesota Statutes which
must be cut or removed). Such restricted areas shall be noted on the Development Plan. The
Developer shall place a covenant upon the property comprising the l8-hole golf course, which
covenant shall provide that the owner of the golf course shall be responsible for maintaining
discharge, storm pipes and holding ponds.
ARTICLE 4.
GOVERNMENT APPROVALS
4.1 Parties' Responsibilities Regarding Government Approvals. Developer shall obtain
all required permits and approvals of local, state, and federal governmental agencies for all Phases of
the Project, including Developer Installed and Financed Improvements associated with such Phases.
ARTICLE 5.
CONSTRUCTION OF PHASES
5.1 Special Conditions. The Developer shall construct the Initial Phase, Sterling South
and Subsequent Phases in accordance with Development Plans approved by City and in accordance
with the Special Conditions for All Phases set out in Exhibit H of the Development Agreement. The
construction of Developer Installed and Financed Improvements for Subsequent Phases shall be
governed by separate development agreements and shall contain the Special Conditions for
Subsequent Phases set out in Exhibit I of the Development Agreement.
5.2 Developer Installed and Financed Improvements. Developer Installed and Financed
Improvements shall be installed as needed and permitted in accordance with the Development Plans
for the Initial Phase legally described in Exhibit A of this Agreement and in the Sterling South plat
as described in the Contract for Development of Land for Sterling South, dated August 15, 1994 and
incorporated by reference herein, and the Development Plans for Subsequent Phases. The Developer
shall convey, dedicate, or cause to be dedicated to the City, at no cost to the City, the land required
for permanent or temporary rights-of-way or utility easements over the Property sites. All such
rights-of-way or easements requested by the City shall be in writing, in recordable form, and as
shown on all subdivisions, plats, or replats of the Property. The Developer shall convey the
Developer Installed and Financed Improvements as set out at Section 6.15 of this Agreement and
subject to Section 6.14. Developer, at the time of conveyance to the City, shall provide a Title
Insurance Policy covering the Developer Installed and Financed Improvements. The Title Insurance
Policy shall be addressed to the City and in such a form as the City may rely upon.
5.3 Compliance with Terms. Unless specifically provided in the Development Plan
approval, no Development Plan approval by the City shall relieve the Developer of its obligation to
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comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules,
and regulations.
ARTICLE 6.
DEVELOPER INSTALLED AND FINANCED IMPROVEMENTS
6.1 Construction of Developer Installed and Financed Improvements. Developer shall
be responsible for assuring the Developer Installed and Financed Improvements are constructed,
installed and warranted during any applicable warranty period, in accordance with the terms of this
Agreement, the policies and ordinances of the City, and all local, state and federal laws and
regulations and according to the plans, specifications, drawings and related documents submitted to
and approved by City Engineer for the Project. The plans, specifications, drawings and related
documents shall be prepared by a Registered Professional Engineer subject to review and written
approval by City Engineer. Changes in plans, specifications, drawing 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.
6.2 Conditions Required for City Council Approval.
A. Before action by the City Council to approve this Agreement, the City must receive a
Letter of Credit in the amount of $500,000, a Warranty (Maintenance) Bond in the amount of
$750,000, a consent to this Agreement in a form acceptable to the City Attorney from
Duininck Brothers and Richard Burtness on behalf of Prior Lake Development, L.P., an
executed copy of this Agreement and the payment required under Article 8.
B. Once the Developer Installed and Financed Improvements are completed as required in
Section 3.1 of this Agreement, the punch list items are completed, as-built drawings are
provided to the City, and the Developer Installed and Financed Improvements are accepted by
the City Engineer, the Letter of Credit may be reduced to five percent (5%) of the cost of the
Developer Installed and Financed Improvements, except for those items in Section 3.1 which
will be completed by July 1, 1997. The Warranty (Maintenance) Bond in the amount of
Seven Hundred and Fifty Thousand Dollars ($750,000) shall remain in effect throughout the
Warranty Period.
6.3 Inspection of Improvements. The City, either utilizing the City's Engineering
Department Personnel or the City's Consulting Engineer, shall inspect the Developer Installed and
Financed Improvements in accordance with the City's Policy for Private Development Projects
incorporated by reference herein, and subject to such conditions as the City Engineer or City
Manager may require to protect the City's interest. Inspection of Improvements by the City shall
include:
A. Inspection of public improvement systems which include grading, sanitary sewer,
watermain, storm sewer/ponding and street system. Grading inspection is for overview of
drainage swales and not for detailed site grading.
B. Documentation of construction work and all testing of Developer Installed and
Financed Improvements.
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C. As-built location dimensions for sanitary sewer, watermain, and storm sewer facilities.
D. Coordination with testing company for soil and material testing and actual material
testing costs as performed by City consultants or city staff.
6.4 Developer's Engineering Services. The Developer's Engineer shall provide all other
construction services at Developer's sole cost including, but not limited to:
A. Construction surveying.
B. As-built drawings of all Developer Improvements (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. All testing as required by the City Engineer to ensure conformance with all plans and
specifications.
6.5 Payment of Inspection Services. All construction inspection and testing fees shall be
paid by the Developer to the City (or Consulting Engineer, as invoiced) within twenty (20) days from
the date of receipt of invoices for such services from the City 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 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, without notice to Developer.
Developer payment of Inspection Services shall not exceed Dollars
($ ).
6.6 Standards of Construction. Developer agrees that all of the Developer Installed and
Financed Improvements shall equal or exceed City standards, shall be constructed and installed in
accordance with engineering plans and specifications approved by the City Engineer and the
requirements of applicable City ordinances and standards, and that all of said work shall be subject to
final inspection and approval by the City Engineer.
6.7 Materials and Labor. All of the materials to be employed in making the Developer
Installed and Financed Improvements and all of the work performed in connection therewith shall be
of uniformly good and workwomanlike quality, shall equal or exceed City standards and
specifications, and shall be subject to the inspection and approval of the City. In case any materials
or labor supplied shall be rejected by the City as defective or unsuitable, then such rejected materials
shall be removed and replaced with approved materials, and rejected labor shall be done anew to the
satisfaction and approval of the City at the cost and expense of Developer.
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6.8 Easements. Developer, at its expense, shall acquire all easements from property
owners necessary to the installation of the sanitary sewer, storm sewer, surface water drainage
facilities and watermains to serve the plat, and thereafter promptly assign said easements to the City.
6.9 Staking, Surveying and Inspection. It is agreed that the Developer, through its
engineer and at its cost, shall provide for all staking and surveying for the Developer Installed and
Financed Improvements. In order to insure that the completed Developer Installed and Financed
Improvements conform to the approved plans and specifications, the City will provide for inspection
as determined necessary by the City Engineer at the sole cost of Developer.
6.10 Grading, Drainage, and Erosion Control - Developer, at its expense, shall provide
grading, drainage and erosion control plans to be reviewed and approved by the City Engineer. Said
plans shall provide for temporary dams, earthwork or such other devices and practices, including
seeding of graded areas, as necessary, to prevent the washing, flooding, sedimentation and erosion of
lands and streets within and outside the plat during all phases of construction. Said plans shall
provide with particularity plans for stabilization of steep slopes within the project area. Developer
shall keep all streets within the plat free of all dirt and debris resulting from construction therein by
the Developer, its agents or assignees.
6.11 Project Testing. The Developer is responsible through its testing company and at the
Developer's cost to provide testing to certify that the Developer Installed and Financed Improvements
are completed in compliance with the approved plans and specifications. The personnel performing
the testing shall be certified by the Minnesota Department 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.
6.12 Street Signs. Developer, at its expense, shall provide standard city street identification
signs and traffic control signs in accordance with the Minnesota Manual on Uniform Traffic Control
Devices.
6.13 Access to Residences. Developer shall provide reasonable access, including temporary
grading and graveling, to all residences affected by construction until the streets are accepted by the
City.
6.14 Acceptance of Developer Installed and Financed Improvements. City will accept
the Developer Installed and Financed Improvements which have been completed in accordance with
the provisions of the Development Agreement and this Agreement. Developer shall furnish
certificates of completion for the completed Developer Installed and Financed Improvements
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.
6.15 Conveyance of Developer Installed and Financed Improvements. The Developer
shall convey all Developer Installed and Financed Improvements to the City free of all liens and
encumbrances or indemnified against all liens and encumbrances in a form acceptable to the City
Attorney and with warranty of title, which shall include copies of all lien waivers in a form which
the City may rely upon and accept. Should the Developer fail to so convey said Developer Installed
and Financed Improvements, the same shall become the property of the City without further notice or
action on the part of either party hereto, other than acceptance by the City.
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6.16 Replacement. All work and materials performed and furnished hereunder by the
Developer, its agents and subcontractors, found by the City to be defective within one year after the
Date of Completion, shall be replaced by Developer at Developer's sole expense. Within a period of
thirty (30) days prior to the expiration of the said one-year period, Developer shall perform a
televised inspection of the sanitary sewer lines on Wilds Ridge, north of the intersection of Wilds
Ridge and Wilds View and provide the City with a VHS videotape thereof. The televising shall be
done in 1997 prior to acceptance of this portion of the street.
6.17 Restoration of Streets, Public Facilities and Private Properties. The Developer
shall restore and clean all City streets and other public facilities and any private properties disturbed
or damaged as a result of Developer's construction activities, including sod with necessary black dirt,
bituminous replacement, curb replacement, and all other items disturbed during construction. Such
restoration and clean-up work shall include all streets and roadways leading to the Project which are
affected by the Developer's construction activities.
6.18 Maintenance of Developer Installed and Financed Improvements.
A. Unless otherwise provided, the Developer agrees to maintain all Developer Installed
and Financed Improvements constructed pursuant to this Agreement, including the landscaped
islands located within the cul-de-sac streets in the Project PUD. The City may pursue any of
the remedies established in Section 9.1 of this Agreement upon Developer's failure to
maintain the Developer Installed and Financed Improvements in a reasonable manner until
such Developer Installed and Financed Improvements are conveyed to the City and accepted
by the City.
B. After the Developer Installed and Financed Improvements are conveyed to the City,
and after eighty (80%) percent of the lots owned by the Developer are sold to parties other
than the Developer, it shall be the responsibility of the Homeowners' Association for The
Wild's PUD to maintain and repair certain improvements including the landscaped islands
located within the cul-de-sac streets, street lights and the forestry easement area.
C. The Golf Course owner shall be responsible for maintaining the water quality ponds
and storm sewers within the golf course. The Developer shall incorporate such requirements
for maintenance in the Declaration of Covenants and any homeowners' association
agreement( s) which homeowners' association agreement( s) shall be reviewed and approved by
the City Attorney. Maintenance of the public streets and sidewalks within the PUD shall be
the responsibility of the City, unless otherwise noted in this Agreement (~ landscaped
islands) .
6.19 Operation and Maintenance of Storm Water Ponds and Lines. The Golf Course
Owner shall operate and maintain the storm water ponds and storm sewer pipes, manholes, and catch
basins on the outlots in perpetuity. The operation and maintenance shall include any required
cleaning of the ponds, pipes, manholes, and catch basins. The operation and maintenance shall also
include any required repairs to the storm water ponds, pipes, manholes, and catch basins, including
manhole frames and covers and catch basin castings. In the event Developer defaults in its obligation
to operate, maintain, clean, and repair the storm water ponds, pipes, manholes, and catch basins on
the outlots, the City shall have the right to perform these activities on behalf of Developer. Should
default occur, and the City assumes operation, maintenance, cleaning, and repair of the storm water
36822.05
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11
ponds, pipes, manholes, and catch basins, the City of Prior Lake shall invoice or assess Developer at
the City's cost for completing these activities.
6.20 Access to Outlots. The City shall not be responsible for repairing turf and
landscaping that is damaged by the City during the operation, maintenance, or repair of sanitary
sewer lines and watermains constructed on the outlots. Repair of turf and landscaping on the outlots
shall be the sole responsibility of Developer. In the event the Developer or Golf Course Owner
defaults in its obligations to operate, maintain, clean, and repair the storm water ponds, pipes,
manholes, and catch basins on the outlots, the City shall have access to the Property to conduct
operation, maintenance, cleaning, and repair activities on the storm water ponds, pipes, manholes, and
catch basins on the outlots.
ARTICLE 7.
INSURANCE AND INDEMNIFICATION
7.1 Insurance Coverage. 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 One Million Dollars
($1,000,000) with respect to death or injury to anyone or more persons and Five Hundred
Thousand Dollars ($500,000) with respect to property damage. Insurance term shall expire at
the conclusion of the warranty period.
B. Umbrella insurance policy in the amount of Two Million Dollars ($2,000,000) with an
owner's protection policy in like amounts.
C. Workers compensation insurance with statutory coverage.
D. Such other insurance in such amounts as is customarily carried by like organizations
engaged in like activities of comparable size and liability exposure.
7.2 Certificates of Insurance. 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 the 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 the City in the event of cancellation of the policy, non-renewal or changes affecting the
coverage thereunder. The 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
certificate 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.
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12
7.3 Indemnification. The Developer shall hold the City harmless from and indemnify the
City against any and all liability , damage, loss, and expenses, including but not limited to reasonable
attorneys' fees, arising from or out of the Developer's performance and observance of any
obligations, agreements, or covenants under this Agreement or the Development Agreement dated
October 22, 1993 which this Agreement replaces, in part, but which Development Agreement is
incorporated by reference herein and which Development Agreement constitutes the underlying
responsibilities of the Developer; or arising out of legal claims of owners of property which was
removed from the Urban Service Area as a result of the amendment of the City's Comprehensive
Land Use Plan. It is further understood and agreed that the City, the City Council, and the agents
and employees of the City, including its City Attorney, shall not be personally liable or responsible in
any manner to the Developer, the Developer's contractors or subcontractors, materialmen, laborers, or
any other person, firm or corporation whomsoever, for any debt, claim, demand, damages, actions or
causes of action of any kind or character arising out of or by reason of the execution of this
Agreement or the Development Agreement, or the performance and completion of the work and
Developer Installed and Financed Improvements hereunder.
ARTICLE 8.
IMPROVEMENTS TO COUNTY ROAD 83
8.1 Amendment No. 1 to the Development Agreement provided the City with a Confession
of Judgment, in lieu of the right to specially assess the cost of certain future improvements to County
Road 83, the need for which are attributed to increased traffic due to the development of all phases
of the Wilds and increased traffic due to the SMSC and Dakota Community Development.
8.2 Amendment No.1 applies a formula apportioning the cost of the future improvements
between the Wilds and the SMSC and Dakota Community Development. The cost of the future
improvements the Developer is required to pay is fixed at Three Hundred Twenty-Five Thousand
Dollars ($325,000.00).
8.3 The Developer will pay to the City, prior to approval of this Agreement, the sum of
Ninety Thousand Dollars ($90,000.00). The balance of Two Hundred Thirty-Five Thousand Dollars
($235,000.00) shall be paid at the rate of Two Thousand Dollars ($2,000.00) per residential acre, or
Five Thousand Dollars ($5,000.00) for a non-residential acre, until the total amount is paid.
8.4 Developer may, at any time, based upon usage or a change in developable acres,
increase the payments payable under this Section, without increasing the total amount due to the City.
ARTICLE 9.
GENERAL PROVISIONS
9.1 Remedies in the Event of Default. Whenever an Event of Default occurs, the
Developer shall have thirty (30) days following written Notice from the City to the Developer of an
Event of Default, to cure such Event of Default. If the Event of Default is not cured within the
thirty (30) day period, the City may take anyone or more of the following actions without further
notification:
A.
City may suspend its performance under the Agreement.
36822.05
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13
B. City may cancel and rescind this Agreement.
C. City may draw upon the Letter of Credit provided to City pursuant to any of the terms
of this Agreement according to their terms.
D. City may also institute legal action against the Developer or utilize the Letter of Credit
delivered hereunder, to collect, pay, or reimburse the City for:
(i) The cost of completing the construction of the Developer Installed and
Financed Improvements described in this Agreement, and the Development
Agreement dated October 22, 1993 ("Development Agreement").
(ii) The cost of curing any other default by the Developer in the performance of
any of the covenants and agreements contained herein, and in the Development
Agreement.
(iii) The cost of planning, engineering, legal and administrative expenses incurred
by the City in enforcing and administering this Agreement, and the
Development Agreement.
(iv) City may take whatever action, including legal or administrative action, which
may appear necessary or desirable in order for City to collect any payments due
under this Agreement and the Development Agreement or to enforce
performance and observance of any obligation, agreement, or covenant of
Developer under this Agreement and the Development Agreement.
(v) City may suspend issuance of Building Permits and/or Occupancy Permits on
lots directly impacted or affected by the deficiency.
9.2 Assignment and Recording. The City shall not approve transfer of this Agreement
unless and until it has received a substitute Irrevocable Letter of Credit and Warranty Bond in an
amount to guarantee compliance with the terms of this Agreement. The City reserves the right to
consider the character, reputation and financial stability of any assignee. Developer agrees that this
Agreement and the rights granted hereunder are not transferable, except with the prior written consent
of the City, which consent shall not unreasonably be withheld.
9.3 The terms and provisions of this Agreement shall 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 all or any part of the Property and shall be deemed covenants running with
the Property.
9.4 This Agreement shall be recorded by the City so as to give notice hereto to subsequent
purchasers and encumbrances of all or any part of the Property. All recording fees, if any, shall be
paid by the Developer.
9.5 Notice. Whenever in this Agreement it shall be required or permitted that Notice or
demand be given or served by either party to this Agreement to or on the other party, such Notice
shall be delivered personally or by United States mail to the addresses hereinafter set forth. Such
36822.05
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14
Notice or demand 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:
If to City: City Manager
City of Prior Lake
16200 Eagle Creek Avenue
Prior Lake, Minnesota 55372-1714
A TTN: Frank Boyles and Larry Anderson
With a copy to: City Attorney
Campbell, Knutson, Scott & Fuchs, P .A.
1380 Corporate Center Curve
Suite 317
Eagan, Minnesota 55121
ATTN: Suesan Lea Pace
If to Developer: Shamrock Rec. Properties, Inc.
3200 Main Street, Suite 300
Coon Rapids, Minnesota 55448
ATTN: James M. Stanton
If to Golf Course Owner: Restan
2500 Wilds Parkway
Prior Lake, Minnesota 55372
A TTN: Mary Dryer
9.6 Unavoidable Delay. Where this Agreement or any provision hereof makes the time of
performance subject to Unavoidable Delay, the time or times for such performances shall be extended
for the period of such Unavoidable Delay, provided, that the parties seeking the benefit of the
provisions of this section shall, within five (5) days after the beginning of any such Unavoidable
Delay, have 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.
9.7 Amendment to this Agreement. 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.
9.8 Waiver. Failure of either party at anytime 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 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.
9.9 Proof of Title. 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,
36822.05
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15
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.
9.10 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.
9.11 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.
9.12 Execution of Counterparts. This Agreement may be simultaneously executed in
several counterparts, each of which shall be an original, and all of which shall constitute but one and
the same instrument.
9.13 Construction. This Agreement shall be construed in accordance with the laws of the
State of Minnesota.
9.14 Recitals. The recitals set forth above are incorporated herein.
9.15 Inconsistency. If this Agreement is inconsistent with the words of the Development
Agreement or any requirement made in the Development Agreement, or if any obligation imposed
hereunder upon the Developer is inconsistent, then that provision or term which imposes a greater
and more demanding obligation on the Developer shall prevail.
9.16 No Party Recourse. Third parties shall have no recourse against the City.
36822.05
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IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed on the
day and year first above written.
DEVELOPER:
SHAMROCK REC. PROPERTIES, INC.
By:
Its:
36822.05
5/16/96
CITY OF PRIOR LAKE:
By:
Its Mayor
By:
Its: City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM AND EXECUTION
By:
Its City Attorney
REVIEWED FOR ADMINISTRATION
By:
Its City Engineer
17
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of , 199 ,
by , the of SHAMROCK REC. PROPERTIES,
INC., a Minnesota corporation, on behalf of the corporation.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of , 199_,
by , and , the Mayor and City Manager, respectively,
of City of Prior Lake, a Minnesota municipal corporation, on behalf of the corporation.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Campbell, Knutson, Scott & Fuchs, P .A.
1380 Corporate Center Curve
317 Eagandale Office Center
Eagan, MN 55121
SLP:kgm (3693/002)
36822.05
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18
EXHIBIT "A"
LEGAL DESCRIPTION OF THE INITIAL PHASE
THE WILDS
Lots 1-6, Block 1
Lots 1-16, Block 2
Lots 1-17, Block 3
Lots 1-6, Block 4
Lots 1-5, Block 5
Lots 1-23, Block 6
36822.05
5/16/96
EXlllBIT "B"
,NO.
OATE:
TO: CITY OF PRIOR LAXE
2S49 CA~OTA STREET SZ
PRIOR LAKE MN 55372
Dear Sir or Macam:
We open IrreovQcable Standby Latter of C~edit No.
~he amount of USo S AMOUNT (SPELL OUT OOLUL~ AMOUNT
t1SDLRS)
in
00/11
In favor of yourselves.
For the Account of:
INDIVIDUAL N&~ FOR N~~E OF DEVELOPMENT
DEVELOPER'S ADDRESS
Expires
OAT:':
at our counters.
This 1s a clean Le~~er of Credit available against dra!t~ drawn
aC sight en BANK NAME . ADDRESS , M1n~eso~a
bearing t~e clause: Orawn uncer S~and~y Letter of credit Number
of E~~^ N~~ , accompanied by t~is
orlglnal Letter of Crad~~ for endorsement.
SPECIAL CONDITION(S} :
1. Oraf~s must purpor~ecly ce sig~ed by the Mayor or the
City Mana~er of the Ci~y of Prior Lake.
2. ~his Let~er of Credit is automatically rene~a~le without
amenc~ent tor an adci~ional one year pe~1ec from the
present expi:ation date, unless (90) ninety cavs ~=io~
to said ex?ira~ion ~ate ve shall noeify YOU in .~~i~i~q,
~v Registered Mail, ~hat we have electec. not to re~ew
this LaC~e~ of Credit. But in no event shall the
expiration date ex~enc ~eyond DATE
Payment will be mace a~ ~he ccunters of
Minnesota.
BAN:< NAME
This c~edit is subjec~ to the UniforM C~stoms and Practice for
Oocumenta~t credits (l9SJ Revision) Inter~ational Chamber of
Commerce PUblication No. 400. .
Unless othe~Ji5e stated, all documents are to be fO~Jar~~d to us
by mail, Qr hand celiv2red to our counters.
Oocume~ts to be dirQcted to:
B~K N~~ & AOCRESS
We hereby engage with cra.ers and/or bona fide holcers .t~at
drafts drawn and neqotiated in confo~ity with the t~~s of t~is
credit will be duly hcnoree u~o~ presentation.
BANK N A4'1E
AUTHORIZED SIGNATURE
AUTEORrZID SIGNATURE
-MSJ 1
EXIllBIT "e"
PAYMENT FOR INSPECTION SERVICES
m'Sl:L1UG IGLm:BS March 29, 1996
File: 102-000-00
1326 Ener;y Po~ Drive
St. Paul, MN 55108.
612-6.4.4-4389
1.800-888-2923
fax: 612.u4-9L46
ClVr" ENGlNaeRING:
ENVIRON/.\ENTAL
MUNIOPAL
~ .,,\N/II1NG
~cuo VI.\STE
mU~~AL
SCRV:VIN~
TllArFIC
TRANSlORTATlON
et:CT1ICAVMCCHAN1(.l~
ENGiNEERING:
hV AC
'Cwa CISTiI&Ol1ON
5',10.\
S'fSTEM CONTRO\S
Off1CES IN:
MINNEAPOlIS
PRJOR lAXE
ST. PAUL
WASECA
Mr. Larry Anderson
DPW ICity Engineer
. City of Prior Lake
16200 Eagle Creek Avenue SE
Prior Lake, MN 55372
RE: INSPECTION SERVICES; THE WILDS
Dear Mr _ Anderson:
MSA, Consulting Engineers has provided inspection services for each of the partially
completed projects within The Wilds subdivision:
Wilds t First Phase
Sterling South
Booster Station
The Preserve
This letter will present estimateS for the inspection costs related to completing these
projects, with the exception of The Preserve. It is our understanding that The Preserve
project has been abandoned. The cost estimates presented in this letter are in addition to
the amounts currently owed MSA by The Wilds.
1996 Inspection
Wilds, First Phase
and SterHni South
Inspection
As-Builts
N ot..to-Exceed
Hillin, Amount ($)
18,000
4,000
Booster Station
Inspection
As-Builts
3,000
2,000
~:
1. Assumes that all work will be completed, with the exception of wear course on the
failed street west of the embankment on White Tail Ridge, during the period May IS
through August 1, 1996.
2. If the constrUction period extends beyond August 1, 1996, the inspection estimates
may be exceeded.
ItEVISED 5/17196
An Equal Oppormnicy EmpJoyw
Mr. Larry Anderson
March 29, 1996
Page Two
Wear Course Inspection
Warranty Inspection
Not-to-Exceed
Billinv Amount (~)
500
7.500
1997 Inspection
~:
1. The figure for wear course inspection covers inspection of the wear course that will
be placed over the failed street west of the embankment on Whi~ Tail Ridge.
2. Because the Wilds First Phase, Sterling South, and the Booster Station have not been
completed, the warranty period has not begun to nm. Assuming a August 1. 1996,
completion, the warranty period on all items, other than the wear course mentioned
. in Note 1, will begin on August 2, 1996. Per City of Prior Lake policy, a warranty
inspection is conducted at the end of the warranty period. The $7,500 figure includes
a warranty inspection of streets, curb and gutter, sidewalks. bike paths. boulevard sod,
sanitary sewer manholes, storm sewer manholes. wa.termain valve boxes and hydrants,
storm water ponds, and the booster station. Preparation of a punchlist outlining
required repairs is included in the $7,500 figure. Inspection of the repairs is not
included in the $7,500 figure because the extent of the required repairs cannot be
determined at this time.
Warrant)' Inspection
Not-to-Exceed
Bill ini Amount ($)
500
1998 Inspection
~:
1. The $500 figure covers the warranty inspection of the wear course placed over the
failed street west of the embankment on White Tail Ridge.
If you have any questions regardini the cost estimateS presented in this letter, please feel
free to call.
Sincerely,
MSA, CONSULTING ENGINEERS
~~. ~~~-
Thomas A. Rousbar. P .E.
TAR:tw
OQO-2901.mar
R.EV1SED '/17196
TOTAL P.03
"
EXIllBIT "D"
POLIC'Y FOR PRI\t-ATE DEVELOPMF~t PROJECTS
CONSTRUCTION INSPECTION OF DEVELOPER PROJECTS AL'1D TESTING
REQ~V!E~-rS
It is the policy of the Cit). of Prior Lake that consttUction activity for all privare development
projects within the city shall be inspected by city staff persoMe! or city engineering consultnnt
fum personnel. The constrUction inspection fee charged to the private development shnll be
based upon the fee structure outlined in this policy and the actual engineering services completed
by the ciry.s Engineering Depnrunent or their consultant's representative.
CONSTRO'CTTON IN'SPECTIO~ ENGThiEE~G SERVICES FEE STRlJCTl~~E
Private development projects shall be financially responsible for the engineeting in~pection and
testing services of the development to the ciry. The invoic~s received by the city from
engineering consultants pe:forming inspection or material testing ~.ork shall be forwarded to the
Developer for payme:lt. The Developer shall have tv.tent)~ (20) days in which to pay the invoic~
to the consultant firm from the d:lte of re~:it)t of the invoice bv the City of Prior Lak~. In the
event that payment of an invoice is not made within the t\tie~ry (2Q) day period. the ciry \viil
draw on the Develope:-'s le:te: of credit to pay the invoices received from me ~ity's consultants.
. The city will adjust the lerte:- of credit amount in a way to maintain 25% of the ne~ consuuctioc
. cost plus the remaining construction cost of the project as determined by the City Engineer. If
city staff is us~d for construction inspection or testing services. the hourly charge shall be :lS ~r
the rates established by the city's Finance Director.
CPNSTRt.;cnON INSPECTION SERVICES
The constrUction inspection services includes the inspecting of public infrastructure constrUction
relating to the development.
The construction inspection service shall include:
1. Inspection of public improvement systems which include grading, s~it~ se~'e:.
watermain. storm sewer/pondini. and street systems. Grading inspection is for
overview of drainage swales and not for detail site gra~ng.
.., Documentation of construction work and all testing of improvements.
3. .~-built location dimensions for sanit~ sewe~9 watermain,. ~nd storm se\lle:
facilities.
4. Coordination with testing company for soil and material testing and actuai
material testing costs as pe:formed by city consult3nts or city staff.
All other constrUction services are to be provided by the developer.s engineer which include the
following:
1. ConstrUction surveying
2. As-built drawings of development improvements (TIe dimensions to sewer and
water services from city suff or city consu1~t)
3. ConstrUction quantities
4. Change Orders
5. Construction administration or project
6. ConstrUctiou payment vouchers
EXHmF.W1n'