HomeMy WebLinkAbout6C - Belmont Estates
Maintenance Center
17073 Adelmann Street S.E.
Prior Lake, Minnesota 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
JANUARY 3, 2006
5C
JANE KANSIER, PLANNING DIRECTOR
CONSIDER APPROVAL OF A RESOLUTION APPROVING THE
ASSIGNMENT OF THE DEVELOPMENT CONTRACT FOR THE PLAT
KNOWN AS BELMONT ESTATES
DISCUSSION:
Introduction
The purpose of this agenda item is to determine if the City Council wishes to
approve the assignment of the approved Development Contract for Belmont
Estates from Arcon Development to Toll Brothers. The City's standard
development contract requires Council approval of such assignment requests.
Historv
On December 5, 2005, the City Council approved the final plat and
Development Contract for Belmont Estates, located north of 165lh Street and
CSAH 12, east of Marschall Road, south of Howard Lake and directly west of
the Stemmer Ridge development. The final plat consists of 25.55 acres and
creates 33 lots for single family dwellings, along with 3 outlots used for
stormwater management purposes.
Current Circumstances
Arcon Development is requesting approval of the assignment of the
Development Contract for the Belmont Estates 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. "
Arcon previously received such an assignment for the Stemmer Ridge
Development Contract. Arcon's request to transfer this development is similar
to Stemmer Ridge and reflects the fact that Arcon does not build homes. Toll
Brothers has been in the residential construction business for 38 years, and is
presently active in nineteen states in addition to Minnesota. Our experience
with Toll has been satisfactory.
The Development Contract specifies the required improvements for this plat.
Trunk sewer, watermain and storm sewer area charges are outlined in the
Contract. The parkland dedication requirements for this plat will be satisfied in
part by a cash dedication, since the actual parkland was dedicated as part of
Stemmer Ridge. The City Development Fees collected as part of this contract
total $620,412.00. The Developer will also post a $2,225,718.00 letter of credit
to cover construction costs.
ISSUES:
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.
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FINANCIAL
IMPACT:
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 development fees and LOC are submitted.
ALTERNATIVES:
The City Council has the following alternatives:
1. Adopt a resolution approving the assignment of the Development Contract
for Belmont Estates.
2. Deny the resolution approving the assignment.
3. Defer this item and provide staff with specific direction.
The staff recommends Alternative #1.
RECOMMENDED
MOTION:
1. A motion and second to adopt a resolution approving the assignment of the
Development Contract for Belmont Estates and authorizing the Mayor and
City Manager to sign the agreement
Reviewed by:
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Maintenance Center
17073 Adelmann Street S.E.
Prior Lake, Minnesota 55372
RESOLUTION 06-XX
A RESOLUTION AUTHORIZING THE ASSIGNMENT OF THE "BELMONT ESTATES"
DEVELOPMENT CONTRACT
Motion By:
Second By:
WHEREAS, On December 5, 2005, the City Council approved the final plat known as Belmont
Estates 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
"Belmont Estates".
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 3RD DAY OF JANUARY, 2006.
Hauaen Hauaen
Dornbusch Dornbusch
Erickson Erickson
LeMair LeMair
Millar Millar
YES
NO
Frank Boyles, City Manager
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Phone 952.440.9675 / Fax 952.440.9678
ARCON
DEVELOPMENT, INC.
7625 METRO BLVD. · SUITE 350 · EDINA, MINNESOTA 55439 · PHONE 952/835-4981 · FAX 952/835-0069
E-mail: arcon@arcondevelopment.com · www.arcondevelopment.com
December 6,2005
Jane Kansier
City of Prior Lake
17073 Adelmann Street NE
Prior Lake, MN 55372-1714
RE: Development Contract Assignment
Berens Woods & Belmont Estates - 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 Berens Woods and Belmont Estates properties in addition to
Stemmer Ridge. 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 of both Berens Woods and Belmont Estates. Nevertheless, Arcon
will continue their first hands involvement in the development and completion of the projects 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
Contracts need to be assigned from Arcon to Toll pursuant to Section 46D of the contracts.
Arcon Development, Inc. hereby requests that the Development Contracts for Berens Woods and
Belmont Estates be assigned to Toll Brothers, Inc. at the January 3rd, 2006 City Council meeting.
Based upon our recent correspondence, I believe that we are to a point to where this can happen.
Please do not hesitate to contact me if you need any assistance with the documents.
If you have any questions or comments, feel free to contact me at 952-835-4981. Thank you.
Dustin Kern
Project Manager
CC: Michael Noonan, Toll Brothers
WE DO MORE THAN DEVELOP LAND.... WE CREATE NEIGHBORHOODS
DEVELOPERS - PLANNERS - CONTRACTORS
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LOCATION MAP
BELMONT ESTATES
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ASSIGNMENT AND ASSUMPTION OF TERMS AND CONDITIONS OF
DEVELOPMENT CONTRACT
Belmont Estates
Project #04-34
This Assignment and Assumption Agreement ("Agreement") of Development Contract is
entered into this 3rd day of January, 2006, by and among the City of Prior Lake, a Minnesota
municipal corporation ("City"), Arcon Development, Inc., a Minnesota corporation ("Arcon"),
and Toll Bros, Inc. or its Nominee, a Pennsylvania corporation ("Toll").
RECITALS
(1) Whereas, the City and Arcon have entered into a Development Contract
("Contract") effective December 5, 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
Belmont Estates development; and
(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.
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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 of the 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% ofthe 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 Belmont Estates 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 sixty (60) days of the
City Council's approval of this Agreement. Toll shall provide the City with a recorded copy of
the Agreement. Toll covenants with the City, its successors and assigns, that Toll is well seized
in fee title ofthe 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
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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, INe.
By
Its
And
Its
TOLL BROS, INC.
By
Its
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3
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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, Inc.
day of
of
Notary Public
STATE OF
)
) ss.
)
COUNTY OF
The foregoing instrument was acknowledged before me this
200-, by and
the and
Bros, Inc.
day of
of Toll
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
City of Prior Lake
16200 Eagle Creek Avenue SE
Prior Lake, Minnesota 55372
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