HomeMy WebLinkAbout4L - Carriage Hills 3rd Addn.
CONSENT AGENDA#:
PREPARED BY:
SUBJECT:
DA TE:
4 (I)
KEN SHERMAN, ENGINEERING TECHNICIAN
CONSIDER APPROVAL OF AMENDMENT #1 TO THE
DEVELOPER'S AGREEMENT WITH PROGRESS LAND
COMPANY FOR CARRIAGE HILLS 3RD ADDITION.
October 16, 1995
INTRODUCTION:
The purpose of this Agenda item is to consider approval of
Amendment #1 to the Contract for Development of Land in
the City of Prior Lake with Progress Land Company for
Carriage Hills 3rd Addition development.
BACKGROUND:
The City of Prior Lake entered into a Developer's Agreement
with Progress Land Company for Carriage Hills 3rd Addition
on the 20th of December 1993.
At that time, it was the City's practi'ce to require 250/0 of the
contract amount for the construction of public utilities in the
form of a Letter of Credit, during the warranty period of the
project. This provides security for the condition of the
streets and utilities during the warranty period. If the streets
or utilities fail during the warranty period, and the contractor
will not correct the failure, the City may draw on the Letter of
Credit to the amount needed to correct the failure.
We have since amended the requirement to allow the
developer the option of choosing to provide a Letter of Credit
for 50/0 of the contract amount and a performance bond for
1000/0 of the amount.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
DISCUSSION:
ALTERNATIVES:
RECOMMENDA TION:
ACTION REQUIRED:
Progress Land Company is requesting an amendment to the
Developer's Agreement to allow them to exercise this option.
Since this option is available to all developers now, this is a
reasonable request. Attached is Amendment #1 to the
Developer's Agreement which would allow the contractor to
choose this option.
The developer has completed construction of the utilities
and streets for Carriage Hills 3rd Addition. The city is willing
to accept future maintenance responsibilities for this project
when the warranty period expires.
The alternatives are as follows:
1. Make a motion and second to approve Amendment #1
to the Developer's Agreement.
2. Table this item for specific reasons.
3. Deny this item for specific reasons.
The recommendation is to approve Alternative No.1.
Make a motion and second to approve Amendment #1 to the
Developer's A reem . t.
2
AMENDMENT NO.1
TO
CONTRACT FOR DEVELOPMENT OF
LAND IN THE CITY OF PRIOR LAKE, MINNESOTA
TIDS AMENDMENT NO.1 made and entered into as of the .l.6th..day of October, 1995,
by and between the City of Prior Lake, a municipal corporation organized under the laws of the
State of Minnesota (hereinafter "City") and Pro~ess Land Cotnpany. Inc., a Minnesota
corporation (hereinafter "Developer").
WITNESSETH:
WHEREAS, Developer and City entered into a Contract for Development of Land in the
City of Prior Lake, Minnesota as of the 20th day of December, 1993.; and
WHEREAS, the City has granted preliminary plat approval and final plat approval to
Carriaie Hills Third Addition on the condition that, among other things, Developer enter into
this Amendment to the Agreement to provide for installation of Developer improvements and all
other improvements hereafter described all on the terms and conditions hereafter set forth; and
WHEREAS, paragraph 12 of the Developer's Agreement authorizes amendments to the
Developer's Agreement by a written instrument executed in accordance with the same
procedures and formalities as the original Developer's Agreement; and
WHEREAS, City and Developer believe it is in their best interests to amend the
Developer's Agreement as hereinafter set forth.
NOW THEREFORE, in consideration of these premises and of the mutual promises and
conditions hereinafter contained, the Developer's Agreement is hereby amended as follows:
The following exhibits are attached hereto and by reference made a part of this Agreement:
Exhibit G(l) -First Completion Date, Performance/Warranty Bond
Exhibit G(2) -Second Completion Date, Performance/W arranty Bond
C. Paragraph 7 entitled" Acceptance of Subdivision and Developer Improvements" shall
be amended in its entirety to read after said amendment as follows:
7. ACCEPT ANCE OF SUBDIVISION AND DEVELOPER IMPROVEMENTS.
City will accept the Subdivision after it has been completed in accordance with the
provisions of this Agreement, the policies and ordinances of City, as City may
DAMENCID.DOC
adopt from time to time, and all local, state and federal laws and regulations.
Developer shall furnish certificates of completion for the completed Subdivision
certifying that the work has been completed in accordance with the terms of this
Agreement and shall also furnish mylar "as-built" reproducibles for all phases of
construction included in this Agreement. Prior to acceptance of the completed
Subdivision by the City Engineer, Developer must furnish to City a Letter of Credit
guaranteeing satisfactory performance of the Developer Improvements in an amount
equal to 2lli of the original cost of the Developer Improvements. The 25% Letter
of Credit guarantee amount can be reduced upon the following conditions:
A. The Letter of Credit guaranteeing satisfactory performance of the Developer
Improvements can be reduced to 5% of the original cost of the Developer
Improvements to be completed by the First Completion Date plus 125% of the
original cost of Developer Improvements to be completed by the Second
Completion Date, after acceptance of all Developer Improvements to be
completed by the First Completion Date by the City Engineer in writing, and
by providing the City a Performance/Warranty Bond from the Developer and
its contractors in an amount equal to the cost of the Developer Improvements to
be completed by the First Completion Date. All punch list items related to the
First Completion Date must be completed before a reduction in security will be
considered.
B. The Letter of Credit guaranteeing satisfactory performance of the Developer
Improvements can be reduced to 5% of the original cost of the Developer
Improvements after acceptance of all Developer Improvements by the City
Engineer in writing and by providing the City a Performance/Warranty Bond
from the Developer and its contractors in an amount equal to the original cost
of the improvements which shall be in force for one (1) year (the "Warranty
Period") following acceptance of all required improvements and shall
guarantee satisfactory performance of such improvements. The Warranty
Period shall begin effective the date that the City Engineer accepts all of the
completed improvements, in writing, including the mylar "as-built"
reproducibles for all phases of construction included in this Agreement.
D. Except as amended pursuant to this Amendment No. 1 to the Developer's
Agreement, all other terms, conditions, mutual promises, and undertakings as set
forth in the Contract for Development of Land in the City of Prior Lake, Minnesota
entered into as of the 20th day of December, 1993. shall remain in full force
and effect.
DAMENCUJ.DOC
IN WITNESS WHEREOF, City and Developer have caused this Amendment No. 1 to be
duly executed on the day and year first above written.
Approved by the City Council on the 16th day of October, 1995.
APPROVED AS TO FORM:
DEVELOPER:
By
Glenn R. Kessel
::ml~~7J' me.
ItsAPresident
v'~~rv
CITY OF PRIOR LAKE:
By
Its Mayor
By
Its City Manager
DAMENCID.DOC
STATE OF MINNESOTA }
} ss:
COUNTY OF }
The foregoing instrument was acknowledged before me this day of
, 1995, by Pro~ress Land Company~ Inc. , a Minnesota corporation, on
behalf of said corporation.
Notary Public
STATE OF MINNESOTA }
} ss:
COUNTY OF }
The foregoing instrument was acknowledged before me this day of
, 1995, by 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
DAMENCH3.DOC
EXHIBIT G (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, -
Sanitary Sewer. 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/W arranty 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
DAMENCID.DOC
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' ~n 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
DAMENCID.DOC
EXHIBIT G (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 --"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, -
Sanitax:y 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
PerformancelW arranty 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,
DAMENCID.DOC
., . ""-,~"""~--""""""",."~-~,.---._,,,,,,
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/W arranty 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
DAMENCUJ.DOC