HomeMy WebLinkAbout5E - Stemmer Ridge
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
AUGUST 1, 2005
5E
JANE KANSIER, PLANNING DIRECTOR
CONSIDER APPROVAL OF A RESOLUTION APPROVING THE
ASSIGNMENT OF THE DEVELOPMENT CONTRACT FOR THE PLAT
KNOWN AS STEMMER RIDGE
AGENDA ITEM:
DISCUSSION:
I ntrod uction
The purpose of this agenda item is to review the implications of the
assignment of the approved Development Contract for Stemmer Ridge from
Arcon Development to Toll Brothers.
History
. On June 6, 2005, the City Council approved the final plat and Development
Contract for Stemmer Ridge. The final plat consists of 82.89 acres and
creates 79 lots for single family dwellings and 8 outlots. The outlots are
generally wetlands, bluff and excess land area to be deeded to the City. Three
of the outlots are common area to be managed by the homeowners
association. The plat also includes a 5.88 acre park located on the west side
of the plat. This will be the neighborhood park for Stemmer Ridge and the
adjacent parcels.
Current Circumstances
Arcon Development is requesting approval of the assignment of the
Development Contract for the Stemmer Ridge Development to Toll Brothers,
Inc. According to the letter of request, "Toll Brothers will be assuming all of the
responsibilities of Arcon with respect to the development and construction of
re-aligned County Road 12 and Stemmer Ridge pursuant to the Development
Contract between Arcon and the City of Prior Lake. "
The Development Contract specifies the required improvements for this plat.
Trunk sewer, watermain and storm sewer area charges are outlined in the
Contract. The construction costs for CSAH 12 are also addressed in the
Development Contract. The parkland dedication requirements for this plat will
be satisfied in part by a land dedication and in part by a cash dedication. The
cash dedication is based on the difference between the park area and the
required 10% land dedication requirement, and amounts to $18,690.00.
The Development Contract also details the need for a letter of credit to cover
the costs of the public improvements for this plat. The amount of the LOC is
$5,630,075.00.
ISSUES:
While the City Council has approved the final plat and Development Contract
for Stemmer Ridge, there are still some engineering issues that must be
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FINANCIAL
IMPACT:
ALTERNATIVES:
RECOMMENDED
MOTION:
Reviewed by:
addressed before we can release the final plat documents. The staff has been
working with the Developer to address these issues, and they will be resolved
before the assignment is approved.
The development fees and the LOC required by the Development Contract
have not been provided to the City at this time. Arcon has advised the staff
Toll Brothers will be responsible for this payment.
The final issue is the extension of CSAH 12 through this project. The City and
Scott County have entered into a cooperative agreement to allow Arcon to
complete this work. Arcon has indicated to staff they will continue to be
involved in the project, to ensure the CSAH 12 work is completed as promised.
There is no financial impact as a result of this action. The required
development fees and LOC will be submitted. The plat will not be released
until the engineering issues are addressed and the development fees and LOC
are submitted.
The City Council has the following alternatives:
1. Adopt a resolution approving the assignment of the Development Contract
for Stemmer Ridge.
2. Deny the resolution approving the assignment.
3. Defer this item and provide staff with specific direction.
The staff recommends Alternative #1. This requires the passage of the
following motion:
1. A motion and second to adopt a resolution approving the assignment of the
Development Contract for Stemmer Ridge and authorizing the Mayor and
City Manager to sign the agreement
Frank BOyles'};! H
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16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
RESOLUTION OS-xx
Motion By:
Second By:
WHEREAS, On June 6, 2005, the City Council approved the final plat known as Stemmer Ridge
and authorized the Mayor and the City Manager to execute the Development Contract
for this plat; and
WHEREAS, Arcon Development is requesting approval of the assignment of the executed
Development Contract to Toll Brothers, Inc.; and
WHEREAS, The Development Contract lists the required public improvements, development fees
and the necessary Letter of Credit; and
WHEREAS, Toll Brothers, Inc., is able to assume the responsibilities for the public improvements,
development fees, Letter of Credit and all other duties involved in the Development
Contract; and
WHEREAS, The City Council has approved the assignment of the Development Contract for
"Stemmer Ridge".
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The Mayor and City Manager are hereby authorized to execute the Assignment Agreement on
behalf of the City.
PASSED AND ADOPTED THIS 1ST DAY OF AUGUST, 2005.
Haugen Haugen
Fleming Fleming
leMair leMair
Petersen Petersen
Zieska Zieska
YES
NO
Frank Boyles, City Manager
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ASSIGNMENT AND ASSUMPTION OF TERMS AND CONDITIONS OF
DEVELOPMENT CONTRACT
Stemmer Ridge
Project #03-34
This Assignment and Assumption Agreement ("Agreement") of Development Contract is
entered into this 20th day of June, 2005, by and among the City of Prior Lake, a Minnesota
municipal corporation ("City"), Arcon Development, Inc., a Minnesota corporation ("Arcon"),
and Toll Bros, Inc., a Pennsylvania corporation ("Toll").
RECITALS
(1) Whereas, the City and Arcon have entered into a Development Contract
("Contract") effective June 6, 2005; and
(2) Whereas, the Contract sets forth certain terms and conditions between the City
and the fee owner of the property therein defined regarding final development of all lots in
Stemmer Ridge development; and
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(3) Whereas, in accordance with the terms and conditions of the Contract, which in its
totality is incorporated herein by reference and made a part hereof, provides for the assignment of
that Contract under certain terms and conditions.
NOW, THEREFORE, based on the mutual promises and covenants set forth herein, the
sufficiency of which is not disputed, the City, Arcon, and Toll (collectively "Parties") agree as
follows:
1. Incorporation of Recitals. The above-referenced three recitals are all hereby
incorporated by reference herein and made a part of this Agreement.
2. Consent ofthe City. The City hereby consents and agrees to the assignment of the
Contract between the City and Arcon to Toll.
3. Assumption of All Rights, Duties and Obligations Under Contract. Toll hereby
agrees and consents to be fully bound by all the terms and conditions of the Contract pertaining
to all properties therein described. Toll further agrees to furnish the City with an Irrevocable Letter
of Credit in an amount equal to 125% of the estimated Developer Improvement Costs as required by
Paragraph 36 of the aforementioned Contract.
4. Continuing Obligations and Responsibilities Under Contract; Arcon.
Notwithstanding the transfer, sale and assignment of its rights, duties and obligations under the
Contract regarding Stemmer Ridge to Toll, Arcon hereby acknowledges and agrees to continue to
be fully bound and obligated to all the terms and conditions set forth in the aforementioned
Contract, all in accordance with paragraph 46(D) therein.
5. Recording of Agreement. This Agreement shall run with the land. Toll, at its sole
cost and expense, shall record this Agreement against the property within fifteen (15) days ofthe
City Council's approval of this Agreement. Toll shall provide the City with a recorded copy of
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the Agreement. Toll covenants with the City, its successors and assigns, that Toll is well seized
in fee title of the property described in the Contract, being final platted and/or has obtained
consents as set forth in said Contract, in the forms attached thereto, from all parties who have an
interest in the property, that there are no unrecorded interests in the property being final platted,
and that Toll indemnifies and holds the City harmless for any breach of the foregoing covenants.
6. Jurisdiction; Toll. By execution of this Agreement, Toll hereby consents to, and
agrees to be bound by, the jurisdiction of the State of Minnesota, all in accordance with the terms
and conditions as more specifically set forth in the Contract.
7. Successors and Assigns. The Parties agree that each, and their respective
successors and assigns, shall all be bound by, and inure to the benefit of, all the terms and
conditions provided for herein, and in the Contract, and all other agreements, attachments and
exhibits incorporated by reference in such Contract.
CITY OF PRIOR LAKE
By
Jack Haugen, its Mayor
By
Frank Boyles, City Manager
ARCON DEVELOPMENT, INC.
By
Its
And
Its
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TOLL BROS, INe.
By
Its
And
Its
STATE OF MINNESOTA )
) ss.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this _ day of
200_, by Jack G. Haugen, Mayor, and by Frank Boyles, City Manager, of the City of Prior Lake,
a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority
granted by its City Council.
Notary Public
~
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this
200-, by , the
Arcon Development, mc.
day of
of
Notary Public
STATE OF
)
) ss.
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COUNTY OF
) .
The foregoing instrument was acknowledged before me this
200___, by and
the and
Bros, Inc.
day of
of Toll
Notary Public
TIllS INSTRUMENT WAS DRAFTED BY:
City of Prior Lake
16200 Eagle Creek Avenue SE
Prior Lake, Minnesota 55372
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7625 METRO BLVD. · SUITE 350 · EDINA, MINNESOTA 55439 · PHONE 952/835-4981 · FAX 952/835-0069
E-",ail: arcon@arcondevelopment.com · www.arcondevelop".ent.com
July 12, 2005
Jane Kansier
City of Prior Lake
16200 Eagle Creek Avenue SE
Prior Lake, MN 55372
RE: Development Contract Assignment
Stemmer Ridge - Prior Lake, MN
Dear Jane:
As you know, Arcon Development, Inc. will be working with Toll Brothers, Inc. in the
development and construction of the Stemmer Ridge property. Toll Brothers is a "luxury"
homebuilder that has committed to entering the Twin Cities marketplace. Toll Brothers will
bring an exciting new flavor to the area and we are excited to unveil their capabilities in the City
of Prior Lake. To learn more about Toll Brothers, feel free to visit their web site at
www.tollbrothers.com.
~
Toll Brothers will be assuming all of the responsibilities of Arcon with respect to the
development and construction ofre-aligned County Road 12 and Stemmer Ridge pursuant to the
Development Contract between Arcon and the City of Prior Lake. Nevertheless, Arcon will
continue their first hands involvement in the development and completion of Stemmer Ridge as I
completely understand the relationship that we have established with the City of Prior Lake.
As you know, in order for Toll Brothers to formally take on this responsibility, the Development
Contract needs to be assigned from Arcon to Toll pursuant to Section 46D of the contract. The
actual "Assignment and Assumption of Terms and Conditions of Development Contract" has
previously been submitted to you.
Arcon Development, Inc. hereby requests that the Development Contract for Stemmer Ridge,
Project #03-34, be assigned to Toll Brothers, Inc. at the August 1 st City Council meeting. Based
upon our recent correspondence, I believe that we are to a point to where this can happen.
If you have any questions or comments, feel free to contact me at 952-835-4981. Thank you.
Dustin Kern
Proj ect Manager
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