HomeMy WebLinkAbout9C - Deerfield 5th Final Plat
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
ISSUES:
CITY COUNCIL AGENDA REPORT
SEPTEMBER 6, 2005
9C
JANE KANSIER, PLANNING DIRECTOR
CONSIDER APPROVAL OF A RESOLUTION APPROVING THE FINAL
PLAT AND DEVELOPMENT CONTRACT FOR DEERFIELD FIFTH
ADDITION
Introduction
Deerfield Development and Lehrer and Associates have filed an application for
approval of a preliminary plat to be known as Deerfield Industrial Fifth Addition.
The final plat consists of 3 lots and 2 outlots for future development. This
agenda item requests City Council clarification on a policy issue with respect to
this final plat.
History
In August of 2004, the City Council adopted Resolution 04-125 approving the
final plat for the Deerfield Industrial Park located east of Fish Point Road, on
the south side of Cottonwood Lane and Adelmann Street. The plat consisted
of 60.93 acres that were subdivided into 6 outlots.
Current Circumstances
The final plat of Deerfield Fifth Addition consists of 19.34 acres to be
subdivided into 3 lots for commercial and industrial development. Lot 1, Block
1, and Lot 1, Block 2, are zoned 1-1; Lot 1, Block 3 is zoned C-5. The plat also
includes 2 outlots for future development.
The principal requirements for final plat approval include a signed
Development Contract with surety for the installation of utilities and streets and
the satisfactory completion of all preliminary plat conditions.
There are no public improvements required as a part of Deerfield Industrial
Park Fifth Addition. The Development Contract specifies the development
fees for the platted lots.
The Developers have indicated they have buyers for Lot 1, Block 1 and for Lot
1, Block 3. There is not a specific buyer for Lot 1, Block 2 at this time.
Because of the uncertainty of the immediate sale of this lot, the Developers
are asking the Council to defer the development fees for Lot 1, Block 2.
Normally, all development fees are collected at the time of final plat. This
amounts to approximately $47,900 in development fees for this lot. The
developers are proposing the development fees be collected with a building
permit or after the lot is sold, which is not consistent with our previous policies.
If the developers do not wish to pay the development fees for this lot, they
have the option of either removing the lot from the plat, or platting it as part of
Outlot A, for future development. The Developers have advised staff they do
www.cityofpriorlake.com
F: \:/-Rhoo~ 19~"44@:. 96l/SFl blfuxc95~c414fi~'9.6 7 8
FINANCIAL
IMPACT:
ALTERNATIVES:
RECOMMENDED
MOTION:
Reviewed by:
not wish to pursue either of these options because they believe it will delay the
platting process too long. The staff discussed this with the Scott County
Surveyor, who advised staff that changing the lot to an outlot would not impact
the County's review time. The staff is concerned that the precedence set
would be undesirable and lead to an accounting nightmare.
Therefore, the attached Development Contract is written to include the fees for
all three lots. If the City Council wishes to defer the fees for Lot 1, Block 2, the
contract will have to be redrafted accordingly, and Lot 1, Block 2, would be
replatted as part of Outlot A.
Approval of this final plat will allow construction of new business
establishments, which will contribute to the City's tax base. The required
development fees are deposited into the appropriate City accounts.
The City Council has the following alternatives:
1. Adopt the resolution with conditions approving the final plat and
Development Contract for Deerfield Industrial Park Fifth Addition as
written.
2. Adopt a resolution with conditions approving the final plat and Development
Contract for Deerfield Industrial Park Fifth Addition modified to replat Lot 1,
Block 2 as part of Outlot A.
3. Deny the resolution approving the final plat.
4. Defer this item and provide staff with specific direction.
Staff recommends Alternative #1 or #2.
A motion and second to adopt a resolution approving the final plat and
Development Contract for Deerfield Industrial Park Fifth Addition and
authorizing the Mayor and City Manager to sign the Development Contract with
the conditions contained in the alternative the City Council selects.
\OS
August26,2005
Lehrer and Associates
Attention: Joe Lehr
7586 167th Street East
Prior Lake, MN 55372
Deerfield Development
Attention: John Mesenbrink
7765 - 175th Street East
Prior Lake, MN 55372
RE: Development Fees for Deerfield Industrial Park 5th Addition
/4/
Dear Joe and John:
Based on our recent conversations, the City staff understands you are requesting the
City Council defer the development fees, which would normally be collected with the
development contract and final plat, on Lot 1, Block 2, Deerfield Industrial Park 5th
Addition. You are proposing the City defer these fees until a building permit is issued for
this lot. You are requesting this deferral because this lot has not been sold at this time,
and you are unsure when it will be sold. However, you would like to plat the lot at this
time to facilitate development. You understand you have the option of platting this lot as
an outlot, but do not wish to pursue this avenue because you believe it will delay
approval of the final plat and jeopardize other sales.
Of ~~ ~
A ~cP>{\.~IfJ~
\~ 0
As I have explained, the City staff is preparing the development contract based on
standard City practices. This contract includes the development fees for Lot 1, Block 2.
The City Council must make the decision about deferring the fees. By signing this letter,
you are stating your understanding of this matter.
Sincerely,
a.~
ane Kansier, AICP
lanning Director
I have read the above letter and understand the City staff will forward this to the City
Council as a statement of my request to defer the development fees on Lot 1, Block 2,
Deerfield Industrial Park 5th Addition until a building permit is issued. so understand
the City Council has the final authority to determine whet r or not defer the fees.
Signed:
Joe Lehrer, President
Lehrer & Associates
1:\05 IIIes\05 subdivlslon\05 llnal p/alldeerlield ind park 5thlfee ~afpriorlake. com
Page 1
Phone 952.440.9675 / Fax 952.440.9678
_M"___'_'___'_'~"_'__,~__'''_''_''______''_______'''''''__...._.....___....._.___......
DEVELOPMENT CONTRACT
DEERFIELD INDUSTRIAL PARK 5TH ADDITION
PROJECT #05-179
This DEVELOPMENT CONTRACT is entered into this 6th day of September, 2005, by and
between the CITY OF PRIOR LAKE, a Minnesota municipal corporation ("City"), and Deerfield
Development, LLC, a Minnesota Limited Liability Corporation and Lehrer and Associates, Inc., a
Minnesota Corporation (the "Developer"). Based on the mutual promises and covenants set forth herein,
the sufficiency of which is not disputed, the City and the Developer (collectively "Parties") agree as
follows:
1. REOUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a Plat
for Deerfleld Industrial Park Fifth Addition (referred to in this Development Contract as the "Plat"). The
land is legally described as:
Outlot B, DEERFIELD INDUSTRIAL PARK. THIRD ADDITION and Outlot A, DEERFIELD
INDUSTRIAL PARK FOURTH ADDITION, according to the recorded plat thereof, Scott County,
Minnesota
L:\05 FILES\05 SUBDIVISION\05 FINAL PLA 1\Deerfield Ind Park 5th\dev contract.DOC
Page I
2. CONDITIONS OF PLAT APPROVAL. The City hereby approves the Plat on condition
that the Developer enter into this Development Contract, furnish the Security required by it, and record the
Plat and Development Contract with the County Recorder or Registrar of Titles within 90 days after the
City Council approves the final Plat.
3. RIGHT TO PROCEED. Within the Plat or land to be platted, the Developer may not
construct sewer lines, water lines, streets, utilities, public or private improvements, or any buildings until
all the following conditions have been satisfied: 1) this Development Contract has been fully executed by
both parties, 2) the necessary security, development fees and insurance have been received by the City, and
3) the City Engineer or Designee has issued a letter that all conditions have been satisfied and that the
Developer may proceed. The foregoing restriction on the Developer's "Right To Proceed" does not apply
to grading or other approvals set forth in Resolution No. 04-72, dated April 19, 2004, approving the
Preliminary Plat for Deerfield Industrial Park.
4. PHASED DEVELOPMENT. If the Plat is a phase of a multiphased preliminary Plat, the
City may refuse to approve Final Plats of subsequent phases if the Developer has breached this
Development Contract or any terms or conditions set out in the Resolution approving the Final Plat and the
breach has not been remedied. Development of subsequent phases may not proceed until the City approves
Development Contracts for such phases. Fees and charges collected by the City in connection with
infrastructure, public improvements and parkland dedication requirements are not being imposed on
outlots, if any, in the Plat that are designated in an approved Preliminary Plat for future subdivision into lots
and blocks. Such charges will be calculated and imposed when the outlots are subdivided into lots and
blocks.
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 2
5. PRELIMINARY PLAT STATUS. If the Plat is a phase of a multiphased preliminary Plat,
the Developer shall submit a Staging Plan for City Council approval which may allow the Developer more
than one (1) year to subdivide the property into lots and blocks.
6. DEVELOPMENT PLANS. The Plat shall be developed in accordance with the Plans
identified below. The Plans shall be approved by the City Engineer prior to consideration of the Final Plat
and Developer's Contract by the City Council. The plans shall not be attached to this Development
Contract, but are incorporated by reference and made a part of this Development Contract as if fully set
forth herein. If the plans vary from the written terms of this Development Contract, the more specific or
stringent controls shall apply. The Plans are:
Plan A --
Final Plat Dated July 21, 2005 (prepared by Rehder and Associates, Inc.)
All plans set forth above are incorporated herein and made part of this Development Contract.
7. DEVELOPER INSTALLED IMPROVEMENTS. The Developer shall install and pay for
the following:
A. Setting oflron Monuments
B. Wetland Buffer Signage
The Developer Installed hnprovements shall be installed in accordance with the City's Subdivision
Ordinance, City standard specifications for utilities and street construction, the City's Public Works Design
Manual, and any other applicable City ordinances, all of which are incorporated herein by reference. The
Developer shall submit plans and specifications, which have been prepared by a Minnesota registered
professional civil engineer to the City for approval by the City Engineer. The Developer shall obtain all
necessary permits and approvals from any other agencies having jurisdiction before proceeding with that
aspect of the construction as it relates to that permit. The Developer, its contractors and subcontractors,
shall follow all instructions received from the City's authorized personnel. The Developer or the
Developer's engineer shall schedule a preconstruction meeting with all parties concerned, including the
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 3
City staff, to review the program for the construction work. Before the Security for the completion of
utilities is released, iron monuments must be installed in accordance with Minn. Stat. ~505.02. The
Developer's surveyor shall submit a written notice to the City certifying that the monuments have been
installed.
8. CONSTRUCTION OBSERVATION No construction observation is required.
9. DEVELOPER PROVIDED CONSTRUCTION SERVICES. The Developer shall be
responsible for providing all other construction services including, but not limited to:
A. As-built drawings of grading plans.
B. Lot comers and monwnents.
10. SUBDIVISION MONUMENTS. The Developer shall install all subdivision
monwnentation within one (1) year from the date of recording the plat, or the monwnentation 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 (1) year period from recording of the Plat, the Developer shall submit to the
City Engineer written verification by a registered land surveyor that the required monwnents have been
installed throughout the plat.
11. TIME OF PERFORMANCE. No improvements required.
12. LICENSE. The Developer hereby grants the City, its agents, employees, officers and
contractors a non-revocable license to enter the Plat to perform all work and inspections deemed
appropriate by the City in conjunction with the development of the Plat.
13. EROSION CONTROL. A. Prior to initiating site grading, the erosion control plan, Plan
B, and Stonnwater Pollution Prevention Plan (SWPPP) shall be implemented by the Developer and
inspected and approved by the City. The City may require the Developer, at no cost to the City, to install
additional erosion control measures if they are necessary to meet erosion control objectives. All areas
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 4
disturbed by the excavation and backfilling operations shall be reseeded immediately after the
completion of the work in that area. All seeded areas shall be mulched, and disc anchored as necessary
for seed retention. The parties recognize that time is of the essence in controlling erosion. If the
Developer does not comply with the erosion control plan and schedule or supplementary conditions
imposed by the City, the City may take such action as it deems appropriate to control erosion. The City
will endeavor to notify the Developer in advance of any proposed action, but failure of the City to do so
will not affect the Developer's and City's rights or obligations hereunder. The Developer shall be solely
responsible for any costs incurred by the City for erosion control measures. The Developer shall fully
reimburse the City for any cost incurred within ten (10) days of the date of the City's invoice. If the
Developer does not reimburse the City for any cost the City incurred for such work within ten (10) days,
the City may, without further notice to the Developer, draw down the Irrevocable Letter of Credit to pay
any costs. No development, utility or street construction will be allowed unless the Plat is in full
compliance with the erosion control requirements. Due to the time sensitive nature of providing for
erosion control, the notice provisions set out in Paragraph 39 shall not apply to notifications to the
Developer under this paragraph.
(1) The Developer shall seed or lay cultured sod in all boulevard areas behind curb within thirty
(30) days, or within a timeline established by the City Engineer, of the completion of street related
improvements (sod does not need to be installed in areas of buildable lots where silt fence is required
behind curbs). (2) Restore all other areas disturbed by the development grading and construction
operations within this time period. (3) Boulevard and disturbed area restoration shall be in accordance
with the approved Plan B and SWPPP. (No building permits will be issued until the Developer has
installed silt-fence behind the curb of all buildable lots).
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 5
14. CLEAN UP. The Developer shall clean dirt and debris from streets that has resulted from
any and all construction work by the Developer, homebuilders, contractors and subcontractors, their agents
or assigns. Prior to any construction in the Plat, the Developer shall identify, in writing, a responsible party
and schedule for erosion control, street cleaning, and street sweeping. If the Developer fails to perform the
required clean up within 24 hours of receiving instructions and notice from the City, the City, without
further notice, will perform the work and charge the associated cost to the Developer. If the Developer
does not reimburse the City for any cost the City incurred for such work within ten (10) days of receipt of
the invoice, the City may draw down, without further notice, the Irrevocable Letter of Credit to pay any
costs incurred by the City. Due to the time sensitive nature of clean up, the notice provisions set out in
Paragraph 39 shall not apply to notifications to the Developer under this paragraph.
15. GRADING PLAN.
A. The Plat shall be graded in accordance with the approved grading, development and
erosion control plans for Deerfield Industrial Park. The plans and work shall conform to the requirements
set forth in the City of Prior Lake Public Works Design Manual.
B. As-bunts. Before the City releases the Grading Security, the Developer shall
provide the City with an as built grading plan and a certification by a registered land surveyor or engineer
that all ponds, swales, and ditches have been constructed on public easements or land owned by the City.
The as built plan shall include field verified elevations of the following: a) cross sections of ponds, b)
location and elevations along all swales and ditches, and c) lot corners and house pads. The City may
withhold issuance of building permits until the approved certified grading plan is on file with the City and
all erosion control measures are in place as determined by the City Engineer. The Developer shall also
submit a lot tabulation certified by a registered engineer showing that all pads have been corrected in
accordance with project specifications.
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 6
.'-'"""-'~~"'~.""'-'-~-"-'-""-'''~'''~-''''-''''-"'-''"..~..~----,.._*-......_--_.~-~--,-~."----~-----~----~._----,~
16. OWNERSHIP OF DEVELOPER INSTALLED IMPROVEMENTS. Upon completion
of the Developer Installed Improvements required by this Development Contract; (1) fmal written
acceptance by the City Engineer and, (2) adoption of a resolution of acceptance by the City Council, the
improvements lying within public right-of-way and easements shall become City property. The Developer
shall be responsible for all pond maintenance until written acceptance by the City of the Developer installed
improvements. (Alternative): Pond shall be maintained in perpetuity by developer or homeowner's
association.
17. STREET MAINTENANCE. Developer shall be responsible for all street maintenance
until final written acceptance by the City of the Developer Installed Improvements.
18. CONSTRUCTION ACCESS. Construction traffic access and egress for grading, public
utility construction, and street construction is restricted to Adelmann Street and CSAH 87. No construction
traffic is permitted on the adjacent local streets.
19. IMPROVEMENTS REOUIRED BEFORE ISSUANCE OF BUILDING PERMITS.
A. Grading, utilities, curbing, and one lift of bituminous shall be installed on all streets
providing access and adjacent to a lot prior to issuance of any building permits for that lot. Grading as-
builts for the proposed building permit shall be approved prior to issuance of a building permit. Before a
building permit will be issued a minimum of one (1) active fire hydrant within 300 feet of the unit must be
available for fire protection. If building permits are issued prior to the acceptance of the Developer
Installed Improvements, the Developer assumes all liability and costs incurred as a result of the delays in
completion of the Developer Installed Improvements; including damages to Developer Installed
Improvements caused by the City, or its agents or contractors, the Developer, its contractors,
subcontractors, material men, employees, agents or third parties.
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 7
B. A temporary or permanent Certificate of Occupancy shall not be issued for any
building in the plat until water and sanitary sewer improvements have been installed and the streets have
been completed and the first lift of bituminous has been placed and said improvements have been inspected
and determined by the City to be available for use.
20. CITY ADMINISTRATION. The Developer shall pay a fee for City administration. City
administration will include all activities necessary to implement this Developer's Contract. These activities
include, but are not limited to, preparation of the Development Contract, consultation with Developer and
its Engineer on the status of or problems regarding the development of the Plat, project monitoring during
the warranty period, processing of requests for reduction in security, and any consulting or legal fees
incurred by the City. Fees for this service shall be $500.00. This amount includes the costs which have
already been incurred by the City Engineering and Planning Departments for preparation of this
Development Contract and review of the final plat.
21. CITY CONSTRUCTION OBSERVATION. No observation required.
22. TRUNK STORMWATER ACREAGE CHARGE. The Developer shall pay a trunk
stormwater acreage charge of $25,894.00 for trunk stormwater improvements prior to the City signing the
final Plat. The amount was calculated as follows: 4.48 acres at $5,780.00 per acre. This charge was
determined by the Trunk Storm Water Fee Study adopted by City Council Resolution # 05-18 on January
18,2005.
23.
TRUNK WATER ACREAGE CHARGE. A trunk water acreage charge of $24,640.00
shall be paid by the Developer for trunk watermain improvements prior to the City signing the final Plat.
The amount was calculated as follows: 4.48 acres at $5,500.00 per acre. This charge was determined by
the Trunk Water System Fee Study adopted by the City Council Resolution #05-07 on January 3,2005.
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 8
24. TRUNK SANITARY SEWER ACREAGE CHARGE. A trunk sanitary sewer trunk area
charge of $13,619.00 shall be paid by the Developer for sanitary sewer trunk improvements prior to the
City signing the final Plat. The amount was calculated as follows: 4.48 acres at $3,040.00 per acre. This
charge was determined by the Trunk Sanitary Sewer Fee Study adopted by City Council Resolution on #05-
18 on JaIlUary 18,2005.
25. STREET OVERSIZE ACREAGE CHARGE. The Developer shall pay a street oversize
acreage charge of $22,042.00 for street oversizing improvements prior to the City signing the final Plat.
The amount was calculated as follows: 4.48 acres at $4,920.00 per acres. This charge was determined by
the Transportation Plan Fee Study adopted by City Council Resolution #05-18 on January 18, 2005.
26. CSAH 21 ESCROW. This Development Contract requires the Developer to pay a CSAH
21 Turn Lanes Construction Charge of $10,901.00 for future improvements to the CSAH 21/87
intersection prior to the City signing the final Plat. The Deerfield Industrial Park share was determined as a
50% share of the estimated $250,000 cost of the CSAH 21/87 turn lane improvements spread over 60.9
acres. The amount was calculated as follows 5.31 acres (gross) at $2,053.00 per acre.
27. PARK AND TRAIL DEDICATION The Parkland Dedication for Deerfield Industrial
Park 4th Addition was satisfied by the dedication in Deerfield Industrial Park Addition.
28. STREET LIGHTS AND OPERATIONAL COSTS. 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 streetlights until the City accepts the Developer Installed Improvements,
at which time the billing shall be transferred to the City. The street light plan must be acceptable to the
City Engineer and in accordance with the Public Works Design Manual.
1:\05 files\05 subdivision\05 final plat\deerfleld ind park 5th\dev contract.doc
Page 9
29. LANDSCAPING. Landscaping shall be determined at the time of development of the lot.
A letter of credit guaranteeing the landscaping shall be required at that time. If this section is to be satisfied
by existing trees, a tree protection security may also be required. Upon satisfactory completion of the
landscaping, the escrow funds, without interest, less any draw made by the City, shall be returned to the
person who deposited the funds with the City. If the required landscaping is not installed the City is
granted a license to enter upon a lot and install the landscaping using the escrowed funds deposited by the
builder at the time the building permit was issued.
30. TREE PRESERVATION AND REPLACEMENT. None required.
31. SECURITY. No security is required, however the letter of credit for Deerfield Industrial
Park (#03-40) will not be reduced below 5% until the required irons and monumentation for Deerfield
Industrial Park Fifth Addition have been placed and certification has been received by the City.
32. REDUCTION OF SECURITY. No security required.
33. CITY DEVELOPMENT FEES. The Developer shall also furnish the City with a cash fee
of $97,597.00 for City Development Fees. The amount of the cash fee was calculated as follows:
CITY DEVELOPMENT FEES:
City Administration $ 500.00
Trunk Stormwater Acreage Charge $ 25,894.00
Trunk Water Acreage Charges $ 24,640.00
Trunk Sanitary Sewer Acreage Charges $ 13,619.00
Street Oversize Acreage Charge $ 22,042.00
Park and Trail Dedication Fee (ifin lieu of land) $ 0.00
CSAH 21/87 Turn Lanes Escrow $ 10,901.00
TOTAL CITY DEVELOPMENT FEES $ 97,597.00
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 10
34. WARRANTY. No warranty required.
35. OVERSIZING. No oversizing is required.
36. CLAIMS.
A. City Authorized to Commence Interpleader Action. In the event that the City
receives claims from labor, materialmen, or others that work required by this Development Contract has
been performed, the sums due them have not been paid, and the laborers, materialmen, or others are
seeking payment from the City, the Developer hereby authorizes the City to commence an Interpleader
action pursuant to the Minnesota Rules of Civil Procedure for the District Courts, to draw upon the
Irrevocable Letter of Credit Security in an amount up to one-hundred twenty-five percent (125%) of the
claim(s) and deposit the funds in compliance with the Rule, and upon such deposit, the Developer shall
release, discharge, and dismiss the City from any further proceedings as it pertains to the Irrevocable
Letters of Credit deposited with the District Court, except that the Court shall retain jurisdiction to
determine attorneys' fees pursuant to this Development Contract.
B. Prompt Payment to Subcontractors Required. The Developer shall pay any
subcontractor within ten (10) days of the Developer's receipt of payment by the City for undisputed services
provided by the subcontractor. If the Developer fails within that time to pay the subcontractor any
undisputed amount for which the Developer has received payment by the City, the Developer shall pay
interest to the subcontractor on the unpaid amount at the rate of one and one-half percent (1.5%) per month
or any part of a month. The minimum monthly interest penalty payment for an unpaid balance of one-
hundred dollars ($100) or more is ten dollars ($10). For an unpaid balance ofless than one-hundred dollars
($100), the Developer shall pay the actual interest penalty due to the subcontractor. A subcontractor who
prevails in a civil action to collect interest penalties from the Developer shall be awarded its costs and
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page II
disbursement, including attorney's fees incurred in bringing the action, from the Irrevocable Letter of Credit
or other security provided by the Developer to the City. (See Minn. Stat. ~471.425, Subd. 4a.)
37. RESPONSIBILITY FOR COSTS.
A. The Developer shall reimburse the City for costs incurred in the enforcement of this
Development Contract, including engineering and attorneys' fees.
B. Except as provided in Paragraphs 14 and 15 of this Development Contract, the
Developer shall pay in full all bills submitted to it by the City for obligations incurred under this
Development Contract within thirty (30) days after receipt. If the bills are not paid on time, the City may
issue a stop work order until the bills are paid in full.
38. DEVELOPER'S DEFAULT.
A. Definition. In the context of this Development Contract, "Event of Default" shall
include, but not be limited to, anyone or more of the following events: (1) failure by the Developer to pay,
in a timely manner, all real estate property taxes and assessments with respect to the development property;
(2) failure by the Developer to construct the Developer Installed Improvements pursuant to the terms,
conditions and limitations oftms Development Contract; (3) failure by the Developer to observe or perform
any covenant, condition, obligation or agreement on its part to be observed or performed under this
Development Contract; (4) transfer of any interest in the Plat without prior written approval by the City
Council. (For the purpose of this paragraph 39) The sale of a lot, except an outlot, to a builder is not an
event of default); (5) failure to correct any warranty deficiencies; (6) failure by the Developer to reimburse
the City for any costs incurred by the City in connection with this Development Contract; (7) failure by the
Developer to renew the Irrevocable Letter of Credit at least forty-five (45) days prior to its expiration date;
(8) receipt by the City from the Developer's insurer of a notice of pending termination of insurance; (9) a
1:\05 files\05 subdivision\05 final plat\deerfie1d ind park 5th\dev contract.doc
Page 12
breach of any material provision of this Development Contract. With respect to this paragraph, "material
provision" shall be construed broadly to offer the City the fullest protection and recourse possible.
B. Event of Default - Remedies. Whenever an Event of Default occurs, the City, after
providing the Developer with ten (10) days written notice in accordance with the terms of Paragraph 39 of
this Development Contract, may take anyone or more of the following actions:
1. The City may suspend its performance under this Development Contract.
2. The City may cancel or suspend this Development Contract.
3. The City may draw upon or bring action upon any or all of the Securities
provided to the City pursuant to any of the terms of this Development Contract.
4. The City may take whatever action, including legal or administrative action,
which may be necessary or desirable to the City to collect any payments due under this Development
Contract or to enforce performance and/or observance of any obligation, agreement or covenant of
development under this Development Contract.
5. The City may suspend issuance of building permits and/or certificates of
occupancy on any of the lots in this Plat.
6. The City may draw upon the Irrevocable Letter of Credit if the City receives
notice that the bank elects not to renew the Irrevocable Letter of Credit.
7. The City may, at its option, install or complete the Developer Installed
Improvements using the Irrevocable Letter of Credit to pay for the related costs.
8. Any fees incurred by the City associated with enforcing any of the
provisions set out in sections 1-7 above shall be the sole responsibility of the Developer.
C. Election of Remedies. None of the actions set forth in this Section are exclusive or
otherwise limit the City in any manner.
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 13
39. NOTICES. Whenever any paragraph in this Development Contract, with the exception of
paragraphs 14 and 15, requires Notice to be provided to the Developer, the notice shall include the
following: (1) the nature of the breach of the term or condition that requires compliance by the Developer,
or the Event of Default that has occurred; (2) what the Developer must do to cure the breach or remedy the
Event of Default; and (3) the time the Developer has to cure the breach or remedy the Event of Default.
Required Notices to the Developer shall be in writing, and shall be either hand delivered to the
Developer, its employees or agents, or mailed to the Developer by certified mail at the following address:
Deerfield Development, LLC, 7765 l75th Street, Prior Lake, Minnesota, 55372; Lehrer and Associates,
Inc., 7586 167th Street, Prior Lake, Minnesota, 55372. Notices to the City shall be in writing and shall be
either hand delivered to the City Manager, or mailed to the City by certified mail in care of the City
Manager at the following address: City of Prior Lake, 16200 Eagle Creek Avenue, Prior Lake, Minnesota
55372-1714. Concurrent with providing Notice to the City, Notice(s) shall be served upon the City
Attorney Suesan Lea Pace, Esq. at Halleland Lewis Nilan & Johnson, US Bank Plaza, 220 South Sixth
Street, Suite 600, Minneapolis, Minnesota, 55402-4501.
40. INDEMNIFICA TION. Developer shall indemnify, defend, and hold the City, its Council,
agents, employees, attorneys and representatives harmless against and in respect of any and all claims,
demands, actions, suits, proceedings, liens, losses, costs, expenses, obligations, liabilities, damages,
recoveries, and deficiencies, including interest, penalties, and attorneys' fees, that the City incurs or suffers,
which arise out of, result from or relate to this Development Contract. The responsibility to indemnify and
hold the City harmless from claims arising out of or resulting from the actions or inactions of the City, its
Council, agents, employees, attorneys and representatives does not extend to any willful or intentional
misconduct on the part of any of these individuals.
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 14
41. NO THIRD PARTY RECOURSE. The City and Developer agree that third parties shall
have no recourse against the City under this Development Contract. The Developer agrees that any party
allegedly injured or aggrieved as a result of the City's approval of the Plat shall seek recourse against the
Developer or the Developer's agents. In all such matters, including court actions, the Developer agrees that
the indemnification and hold hannless provisions set out in Paragraph 41 shall apply to said actions.
42. INSURANCE REOUIREMENTS. Developer, at its sole cost and expense, shall take out
and maintain or cause to be taken out and maintained, until the expiration of the warranty period(s) on the
Developer Installed hnprovements, public liability and property damage insurance covering personal
injury, including death, and claims for property damage which may arise out of Developer's work or the
work of its subcontractors or by one directly or indirectly employed by any of them. Limits for bodily injury
and death shall be not less than $1,000,000 for one person and $2,000,000 for each occurrence; limits for
property damage shall be not less than $500,000 for each occurrence; or a combination single limit policy
of $1,000,000 or more. The City shall be named as an additional insured on the policy, and the Developer
shall file with the City a certificate evidencing coverage prior to the City signing the Plat. The certificate
shall provide that the City must be given thirty (30) days advance written notice of the cancellation of the
insurance. The Certificate shall be in the form attached hereto as Exhibit C. All insurance certificates shall
have expiration dates falling on June 30th or December 31 st of each year. Each insurance certificate shall
have the project name and City project number clearly shown.
43. RECORDING DEVELOPMENT CONTRACT. This Development Contract shall run
with the land. The Developer, at its sole cost and expense, shall record this Development Contract against
the title to the property within sixty (60) days of the City Council's approval of the Development Contract.
The Developer shall provide the City with a recorded copy of the Development Contract. The Developer
covenants with the City, its successors and assigns, that the Developer is well seized in fee title of the
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 15
property being final platted and/or has obtained consents to this Development Contract, in the form
attached hereto, from all parties who have an interest in the property; that there are no unrecorded interests
in the property being final platted; and that the Developer indemnifies and holds the City harmless for any
breach of the foregoing covenants.
44. SPECIAL PROVISIONS. The following special provIsIons shall apply to Plat
development:
A. Compliance with all of the conditions listed in the Resolution approving the final
Plat.
B. The Developer is required to submit the final Plat in electronic format. The
electronic format shall be compatible with the City's current software. h1 addition upon completion of the
project the Developer shall provide the City with as-built utility plans in electronic format compatible with
the City's current software and with layers, colors and line-types formatted in accordance with City
standards. Additionally three (3) full size (22x34 inch) paper copies and one (1) reduced (llx 17 inch) copy
shall be certified and submitted to the City.
C. The Developer hereby waives any claim against the City for removal of signs placed
in the right-of-way in violation of the City Zoning Ordinance and State Statutes. The City shall not be
responsible for any damage to, or loss of, signs removed pursuant to this provision.
45. MISCELLANEOUS.
A. Compliance With Other Laws. The Developer represents to the City that the Plat
complies with all county, metropolitan, state, and federal laws and regulations, including but not limited to:
subdivision ordinances, zoning ordinances, and environmental regulations. If the City determines that the
Plat does not comply, the City may, at its option, refuse to allow construction or development work in the
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 16
Plat until the Developer does comply. Upon the City's demand, the Developer shall cease work until there
is compliance.
B. Severability. If any portion, section, subsection, sentence, clause, paragraph, or
phrase of this Development Contract is for any reason held invalid, such decision shall not affect the
validity of the remaining portion of this Development Contract.
C. Amendments. There shall be no amendments to this Development Contract unless
in writing, signed by the parties and approved by resolution of the City Council. The City's failure to
promptly take legal action to enforce this Development Contract shall not be a waiver or release.
D. Assignment The Developer may not assign this Development Contract without the
prior written approval of the City Council which approval shall not unreasonably be withheld. The
Developer's obligation 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.
E. Interpretation. This Development Contract 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 Development Contract as a
whole rather than to any particular section or subdivision hereof. Titles in this Development Contract are
inserted for convenience of reference only and shall be disregarded in constructing or interpreting any of its
proVISIons.
F. Jurisdiction. This Development Contract shall be governed by the laws of the State
of Minnesota.
CITY OF PRIOR LAKE
(SEAL)
By:
Jack G. Haugen, Mayor
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 17
By:
Frank Boyles, City Manager
DEVELOPER:
By:
Its:
By:
Its:
STATE OF MINNESOTA )
( ss.
COUNTY OF SCOTT)
The foregoing instrument was acknowledged before me this _ day of , 20-,
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
day of
, 20-,
by
NOTARY PUBLIC
DRAFTED BY:
City of Prior Lake
16200 Eagle Creek Avenue SE
Prior Lake, Minnesota 55372
1:\05 files\05 subdivision\05 final plat\deerfie1d ind park 5th\dev contract.doc
Page 18
FEE OWNER CONSENT
TO
DEVELOPMENT CONTRACT
, fee owners of all or part of
the subject property, the development of which is governed by the foregoing Development Contract, affirm
and consent to the provisions thereof and agree to be bound by the provisions as the same may apply to that
portion of the subject property owned by them.
Dated this _ day of
,20_.
STATEOFMINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of
20_, by
NOTARY PUBLIC
DRAFTED BY:
City of Prior Lake
16200 Eagle Creek Avenue SE
Prior Lake, Minnesota 55372
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 19
MORTGAGEE CONSENT
TO
DEVELOPMENT CONTRACT
, which holds a mortgage on
the subject property, the development of which is governed by the foregoing Development Contract, agrees
that the Development Contract shall remain in full force and effect even if it forecloses on its mortgage.
Dated this _ day of
,20_.
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of
20____, by
NOTARY PUBLIC
DRAFTED BY:
City of Prior Lake
16200 Eagle Creek Avenue SE
Prior Lake, Minnesota 55372
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 20
CONTRACT PURCHASER CONSENT
TO
DEVELOPMENT CONTRACT
, which/who has a
contract purchaser's interest in all or part of the subject property, the development of which is governed by
the foregoing Development Contract, hereby affirms and consents to the provisions thereof and agrees to be
bound by the provisions as the same may apply to that portion of the subject property in which there is a
contract purchaser's interest.
Dated this _ day of
,20_,
STATEOFMINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of
20_, by
NOTARY PUBLIC
DRAFTED BY:
City of Prior Lake
16200 Eagle Creek Avenue SE
Prior Lake, Minnesota 55372
1:\05 files\05 subdivision\05 final plat\deerfie1d ind park 5th\dev contract.doc
Page 21
~
o
~
.....
c
C
<C
E
~
~
C::
~
...J
S
f:
(/)
5
~
.....
c
GJ
w:
ffi
UJ
c
~
.!!! l;
~:{I )tit)
-~j ~,.-
~h ~"
.!~ ~ 1~
I~j jJ
~~! iJ
~;~
O:.t
~h
ii-i~
I!li
~tn
t!.
~~~i
~i'&~
hfi
~;d
h~J
!A!S
l~lt
1~~1
"u,.
irn
"500-
r.~l
:l~:i
.!H~
fi~~
:~ l.
lea
_1lI~~
f
!
I
!I
A~
~
~
i
'1
to
lit
..
l
~
;,
~
..
i
~
~
~
J
I
!
~
. i
i~ .~
U;r
~~ r
~] ~
h
U ~
."
21 .~
Il i
~i i ~
i} l .
if i J
)~ ~ 1
.~ f ~
~.. ~ 11
31 ~ f
11 ~ 11 I
!1 ~ 1 I
{I I h ~
lS I j!i" "
!J ~~ oj
1 ti I t
~! i I; ~ ..:
~i i H i t~
III i i~ il! 1 i
~;t! 1t L ~ If
I~ I l~ I II
Ifl!l i! j ~ I Ill!
;Ii ~~:1 I.. I ~ }ol~
;/SIl i1 n It ~~.. r
~J~ & ~ ;4 'i I ~ 1 ; t ~
~ .. 11. J" ;Illl,!
~
l
..
.
i
~
j
J
t
~
f
~
i
&
"
II
..
~
~
g
l
~
1
J
...
~
;,
~
S
li i
I ~
'i. AI
it
3~
u
'"
1>2
~;
".~
~)
~
0.,
ai
!.~
;,l
l.
~~
~s
~"
i!
~~
11
" ~!
! ~:
~ ;<:
~ I
~ I
~ i!l~
~ -aO
8 it
5 ~ I ~
f
'~
fJ
~
~Il
U
~
I
AI
.
t
I
-
"
2
~
.
~
I
J
1
~
t
S
~
i
.
j
i
1
.
J
1
..
i
i~
~ .
~
l
i
!
'.
s
b
!
. 11
t
I
..
5
i
i
I ~
! I
1
I
~
..
5
..
I
i
!
~
I
1
15 {
~ ~
~ :
~ L
~ .~
~ L
~ I
c ~
~ ~
o ;,
~ j
~ -
I
..
t
I
jt
J1
I"
i~
!f
,~ ~
H ~i
AI
~
i
J I
. ~
I 1
j
..
I
"
II
.
i
"
[
I
~
;,
~
~
"
i
!I i
I b
i A
1 l
1 ~
j
J
I
..
<;
I
l
11
~
I
;~
~ J
~ .
8 :
~ j
,;
J~
fJ
u
i
~
.~
~
! I
! j
! 1
Lt
~\. -'~~I
~; ~:~: :"i:ID~
~
1 !
& j;
3 '0
~ g
I 1
~ t
I l
"
~
.
t
I
~
~
s
s
1
~ i
~ I
I ~
~ s
~ ~
~ ~
~ f
~ ~
.
~
3
..
5
l
1
.
.
;f
"
II
i
~
.~
j
j
S
I
~
~
I
-;
:i
8
;,
I
'i
.
~
I
..
t
If
~1
ii
h
.~
i;
II il
..; 'Jl
~~ ~~
;Ilo ,!o;
1
~
;Il
!
i
1
..
I
.~
i~
-; .
I
1
!
'.
..
u
.s
"
iii II
Q) .c
'0 Ul
'0 "I
~ '0
~
il
'1J ..
c: .c
o Ul
L..
Q)
'1J
..c:
Q)
a::
,;
!~
iiI
"]
.:.
<-
h
:z
0
~
--
c
c
<( \
\
.",
E ". (,
'"
~: ~ I
,
r-,
CL: ~: ~
~ :~
c ~I:
~ ~~~
a:: ."
, -
~ '..
."
'"
'"
','
...J ~: )
'.,
",
s c~(
"
".
g: ,--
'"
'"
~ :~
(I) ',.
".
'.
"
~ ~~ :
'.,
~... .I
C "-
c:;:(
:z .-'
--
c
cj
CL:
ffi
l.W
C
,
1
-'\\n'
!II'lll' \\\
'. (\ I,
. - -----,-- -':IJ:
,,~U <I~) ~J\:::-::J
<.i
.s
'"
iii ..
-z- "
Q) OJ
.....
-~ 1l 0
I '0 <'I
~ Q"t
I 0 (;
Ld- U)
I 0" en <'I
~ ::l! :' <l:
-~ ..
~!J! '0 "
, I ~ ri: ~l! c: .<::
'u ~ 0 en
I ~ i ~~ S:i
~ ,g ...
, '\: , Q)
L__' _ ... ~ '0
.I:.
Q)
0::
. -... "....,..,
A ..."...."..
....-..."....1. ....
I
I ';'-!::::'.
~.~~;;~, "
~""';-:1::'~<j)!i/
"" ~ r:/''j,'>''rF
1'-~9Y
OJ[ 101 .~jt
: : l:.~
I: : ~l;
! L J ;;~
! :---~ .j ~~
:: f----=l .sltc;
to' 'Hd
8,5: : () .;1:
.~~: : i~il
a'i 011 101 !.2 00
CJ:\i~;/.! cr:J:1-=i_L .':;'!~)_=i:j
LO'l:LS Nt.'l:.Sl:.DS
----
l!l
.::.
I-
o
i:!
::>
o
T
'of':
"
\.'
tc~.
.',
""}
.::-
/'
-----
----
,:;;"
:~;
I;; ii!
Hf :~J l!i
,r'W''"'
.(:..:(:': ,,).~ .
... .r...... \.::~
.:((?\ ....
-
z
gJ l~
~~ ;k.; 1~
. ~ ~~:" ;1l~ ~j
c !i!~ k!~ hi
.- il~t;: l J-
. '\I!!1ll ~_! ~H
~ Jif,. ~,B s~
~I! iii IIi
EXHIBIT "B"
SAMPLE IRREVOCABLE LETTER OF CREDIT
No.
Date:
TO: City of Prior Lake
16200 Eagle Creek Avenue
Prior Lake, Minnesota 55372-1715
Dear Sir or Madam:
We hereby issue, for the account of (Name ofDevelooer) and in your favor, our Irrevocable Letter
of Credit in the amount of $ , available to you by your draft drawn on sight on the undersigned bank.
The draft must:
a) Bear the clause, "Drawn under Letter of Credit No.
(Name of Bank) ";
, dated
, 20_, of
b) Be signed by the Mayor or City Manager of the City of Prior Lake.
c) Be presented for payment at
(Address of Bank)
, on or before 4:00 p.m. on November 30, 20_.
This Letter of Credit shall automatically renew for successive one-year terms unless, at least forty-five (45)
days prior to the next annual renewal date (which shall be November 30 of each year), the Bank delivers written
notice to the Prior Lake City Manager that it intends to modify the terms of, or cancel, this Letter of Credit. Written
notice is effective if sent by certified mail, postage prepaid, and deposited in the U.S. Mail, at least forty-five (45)
days prior to the next annual renewal date addressed as follows: Prior Lake City Manager, Prior Lake City Hall,
16200 Eagle Creek Avenue, Prior Lake, Minnesota 55372-1714, and is actually received by the City Manager at
least forty-five (45) days prior to the renewal date.
This Letter of Credit sets forth in full our understanding which shall not in any way be modified, amended,
amplified, or limited by reference to any document, instrument, or agreement, whether or not referred to herein.
This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be
made under this Letter of Credit.
This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice for
Documentary Credits, International Chamber of Commerce Publication No. 400.
We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored
upon presentation.
BY:
Its
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 24
EXHIBIT "C"
SAMPLE CERTIFICATE OF INSURANCE
PROJECT:
CERTIFICATE HOLDER: City of Prior Lake
16200 Eagle Creek Avenue
Prior Lake, Minnesota 55372-1714
INSURED:
ADDITIONAL INSURED:
City of Prior Lake
AGENT:
WORKERS' COMPENSATION:
Policy No.
Effective Date:
Expiration Date:
Insurance Company:
COVERAGE - Workers' Compensation, Statutory.
GENERAL LIABILITY:
Policy No.
Effective Date:
Expiration Date:
Insurance Company:
( ) Claims Made
( ) Occurrence
LIMITS: [Minimum]
Bodily Injury and Death:
$1,000,000 for one person $2,000,000 for each occurrence
Property Damage:
$500,000 for each occurrence
-OR-
Combination Single Limit Policy $1,000,000 or more
COVERAGE PROVIDED:
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 25
Operations of Contractor: YES
Operations of Sub-Contractor (Contingent): YES
Does Personal Injury Include Claims Related to Employment? YES
Completed Operations/Products: YES
Contractual Liability (Broad Form): YES
Governmental Immunity is Waived: YES
Property Damage Liability Includes:
Damage Due to Blasting YES
Damage Due to Collapse YES
Damage Due to Underground Facilities YES
Broad Form Property Damage YES
AUTOMOBILE LIABILITY:
Policy No.
Effective Date:
Expiration Date:
Insurance Company:
(X) Any Auto
LIMITS: [Minimum]
Bodily Injury:
$1,000,000 each person $2,000,000 each occurrence
Property Damage:
$500,000 each occurrence
-OR-
Combined Single Limit Policy: $1,000,000 each occurrence
ARE ANY DEDUCTIBLES APPLICABLE TO BODILY INJURY OR PROPERTY DAMAGE ON ANY
OF THE ABOVE COVERAGES:
If so, list:
Amount: $
[Not to exceed $1,000.00]
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELED BEFORE THE EXPIRATION
DATE THEREOF, THE ISSUING COMPANY WILL MAIL TIllRTY (30) DAYS WRITTEN NOTICE TO
THE PARTIES TO WHOM TillS CERTIFICATE IS ISSUED.
Dated at
On
BY:
Authorized Insurance Representative
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 26
EXHIBIT "D"
TO
DEVELOPMENT CONTRACT
(Oversizing Calcnlations for Developer Installed Improvements)
NO OVERSIZING REQUIRED
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 27
EXHIBIT "E"
TO
DEVELOPMENT CONTRACT
ESTIMATED CONSTRUCTION COSTS
NO PUBLIC IMPROVEMENTS REQUIRED.
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 28
EXHIBIT "F'
TO
DEVELOPMENT CONTRACT
CONDITIONS OF PLAT APPROVAL
1. A current title opinion or commitment of title insurance is submitted acceptable to the City Attorney.
2. Payment of all fees prior to release of the final plat mylars.
3. Reductions of the entire final 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 ofthe final plat with all required signatures are submitted.
5. The developer provides financial security, acceptable to the City Engineer prior to release ofthe final
plat mylars.
6. The final plat and all pertinent documents must be filed with Scott County within 90 days from the
date of final plat approval. Failure to record the documents by December 6, 2005, will render the
final plat null and void.
1:\05 files\05 subdivision\05 final plat\deerfield ind park 5th\dev contract.doc
Page 29