HomeMy WebLinkAbout5L- Premier Dance Academy
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
ISSUES:
FINANCIAL
IMPACT:
CITY COUNCIL AGENDA REPORT
MARCH 5, 2007
5L
DANETTE MOORE, PLANNING COORDINATOR
CONSIDER APPROVAL OF: 1) A RESOLUTION AUTHORIZING
EXECUTION OF A COOPERATIVE AGREEMENT WITH SCOTT COUNTY;
AND 2) A RESOLUTION AUTHORIZING EXECUTION OF A DEVELOPMENT
CONTRACT WITH PREMIERE DANCE ACADEMY
Introduction
In order to facilitate the construction of the Premiere Dance Academy, a
Cooperative Agreement between the City and Scott County and a
Development Contract between the City and the Developer are necessary.
This agenda report recommends approval of both the Cooperative Agreement
and the Development Contract.
Historv
Premier Dance Academy is proposing construction of a new building on the
property located at 4616 Colorado Street. As part of the construction, the
developer will be placing fill on the CSAH 21 right-of-way. This work requires
a Cooperative Agreement between the City and Scott County, and a
Development Contract between the City and the Developer.
Current Circumstances
In order to ensure the development of this site is consistent with the future
plans for CSAH 21, the developer, the County and the City have been working
together to meet all objectives. To avoid the need for a future retaining wall,
the County has agreed to allow the placement of fill on the right-of-way, and to
pay a total amount not to exceed $6,600 (estimated at this time to be $6,072,
but may be adjusted depending on amount of fill necessary) towards the cost
of this fill. In return, the Developer will dedicate ten feet of right-of-way for the
future expansion of CSAH 21.
This arrangement requires two separate agreements. The first is a
Cooperative Agreement between the City and Scott County. This provides a
mechanism for Scott County to reimburse the cost of the fill to the developer
through the City. The second agreement, the Development Contract between
the City and the Developer, enables the City to turn over the money to the
Developer, after an inspection of the work, and after a determination that all of
the conditions have been met.
The proposed cooperative agreement and development contract allow the
construction of the Premiere Dance Academy building, and also assure the
future right-of-way needs will be met.
There are no financial impacts to the City as a result of the agreements. All
costs will be passed from the County to the Developer.
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ALTERNATIVES:
The City Council has the following alternatives:
1. (a) Adopt a Resolution authorizing the execution of a Cooperative
Agreement between the City and Scott County, and (b) adopt a Resolution
authorizing execution of a Development Contract with the Premiere Dance
Academy.
2. Deny the Resolutions authorizing the Cooperative Agreement and the
Development Contract.
3. Defer this item and provide staff with specific direction.
Staff recommends Alternative #1 a and b.
RECOMMENDED
MOTION:
A motion and second to adopt a Resolution authorizing the execution of a
Cooperative Agreement between the City and Scott County and authorizing
the Mayor and City Manager to sign the Cooperative Agreement.
A motion and second to adopt a Resolution authorizing the execution of a
Development Contract for the Premiere Dance Academy and authorizing the
Mayor and City Manager to sign the Development Contract.
Reviewed by:
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....'"..
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
RESOLUTION 07 -xx
AUTHORIZING EXECUTION OF A COOPERATIVE AGREEMENT WITH SCOTT COUNTY RELATED
TO THE PREMIERE DANCE ACADEMY SITE
Motion By:
Second By:
WHEREAS, the City of Prior Lake has approved a site plan for the future Premiere Dance Academy
site at 4616 Colorado Street; and
WHEREAS, City staff has worked with Scott County and Dawn Schulberg of Premiere Dance
Academy to draft a Cooperative Agreement to allow for the reimbursement of Dawn
Schulberg by the City and the County for the cost of fill for improvements; and
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. That the City Manager and Mayor are hereby authorized to enter into a Cooperative Agreement
with Scott County for the exchange of funds related to fill within the right of way and the granting of
future right of way for CSAH 21 improvements.
PASSED AND ADOPTED THIS 5th DAY OF MARCH, 2007.
Hauaen Haugen
Dornbush Dornbush
Erickson Erickson
LeMair LeMair
Millar Millar
YES
NO
Frank Boyles, City Manager
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
RESOLUTION 07 -xx
AUTHORIZING EXECUTION OF A DEVELOPMENT CONTRACT WITH PREMIERE DANCE
ACADEMY
Motion By:
Second By:
WHEREAS, the City of Prior Lake has approved a site plan for the future Premiere Dance Academy
site at 4616 Colorado Street; and
WHEREAS, the City providing a mechanism for the Scott County to reimbursement the developer
for the cost of fill within the right of way of CSAH 21 will facilitate the future construction
of the Premiere Dance Academy at 4616 Colorado Street.
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. That the City Manager and Mayor are hereby authorized to execute the Development Agreement.
PASSED AND ADOPTED THIS 5th DAY OF MARCH, 2007.
YES
NO
Haugen Haugen
Dornbush Dornbush
Erickson Erickson
LeMalr LeMair
Millar Millar
Frank Boyles, City Manager
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
CSAH 21 Premiere Dance Academy
City of Prior Lake
County of Scott
COOPERATIVE AGREEMENT
THIS AGREEMENT, made and entered into this 5th day of March, 2007, by and between the City of
Prior Lake, a body politic and corporate under the laws of the State of Minnesota, (hereinafter "City") and the
County of Scott, a body politic and corporate under the laws of the State of Minnesota,( hereinafter "
County. ").
RECITALS:
A. Premiere Dance Academy, (hereinafter "Developer"), is the owner of a parcel of land legally
described as follows:
City of Prior Lake Lot-OB Block-OB & Lot 14 & W 12' Of Lot 12
Subject to public road rights-of-way and easements of record. (hereinafter "Property")
B. The Developer has submitted a site plan entitled "Premiere Dance Academy" to the City.
C. The County adopted a plan for future road improvements after completing the CSAH 21
Corridor Study. The Study determined that the County will need an additional ten foot (10 ft)
strip of highway right-of-way adjacent to the Developer's Property..
D. The County desires the Developer's Site to be in conformance with the CSAH 21 Corridor
Study.
E. The Developer has requested County assistance to conform the Property to the CSAH 21
Corridor Study
F. The Developer has agreed to dedicate an additional ten (10) feet of highway right-of-way to the
County.
G. The County has agreed to pay for fill material which will conform the Property to the CSAH 21
Corridor Study, within the CSAH 21 right-of-way adjacent to the Developer's Property, as
shown on the Developer's site plan for the Premiere Dance Academy.
H. The City Engineer has prepared an estimate of quantities and unit prices of material and labor for
the above described work and an estimate of the total cost for the work in the sum of $6,072, and
not to exceed $6,600 (if the fill in the right-of-way exceeds 1,000 yards, the developer shall be
responsible for the remaining fill necessary). I. It is contemplated that said improvement work shall be carried out by the parties under the
provisions of Minn. Stat. Sec. 162.17, subd. 1.
1
CSAH 21 Premiere Dance Academy
City of Prior Lake
County of Scott
NOW, THEREFORE, BASED UPON THE MUTUAL PREMISES AND COVENANTS SETFORTH
HEREIN, THE SUFFICIENCY AND SUFFICIENCY OF WHICH IS NOT DISPUTED, THE PARTIES
AGREE AS FOLLOWS:
1. The County shall prepare a highway right-of-way document for execution by the Developer and will be
responsible for recording the document.
2. The City shall enter into a Development Contract with the Developer to ensure a contractual relationship
between a party to this Agreement and the Developer, and to ensure the Developer's fulfillment of its
obligations and reimbursement of the costs covered in this Agreement. The Developer will complete all
improvements for the work as described in recital "G" of this Agreement and in accordance with the
Developer's approved site plan.
3. The City shall administer the contract and inspect the construction of the work at the sole cost of the
City. The County Engineer shall cooperate with the City Engineer and his staff at their request to the extent
necessary.
4. The County shall, based on the agreed to quantities and prices, reimburse the City for its share in the cost
of the work upon submission of a valid invoice.
5. In the event that a dispute arises, the County and the City agree that all disputes between them arising
out of or relating to this Agreement shall be submitted, upon agreement of both parties, to mediation, with the
cost being shared equally.
6. Since each party recognizes each other as a political subdivision of the State of Minnesota, each party
shall maintain general liability and automobile liability coverage protecting itself, its officers, agents, employees
and duly authorized volunteers against any usual and customary public liability claims to the limits prescribed
under Minn. Stat. Sec. 466.04 and Workers' Compensation and shall be in accordance with the Minnesota
statutory requirements. Said policies shall be kept in effect during the entire term of this Agreement.
7. All records kept by the City and the County with respect to the Project shall be subject to examination by
the representatives of each party. All data collected, created, received, maintained or disseminated for any
purpose by the activities of the City or County pursuant to this Agreement shall be governed by Minnesota
Statutes Chapter 13, as amended, and the Minnesota Rilles implementing such Act now in force or hereafter
adopted.
8. The City shall, at its own expense, remove and replace all City owned signs that are within the
construction limits of this Project.
2
CSAH 21 Premiere Dance Academy
City of Prior Lake
County of Scott
9. Neither the County, its officers, agents or employees, either in their individual or official capacity, shall
be responsible or liable in any manner to the City for any claim, demand, action or cause of action of any kind or
character arising out of, allegedly arising out of or by reason of the performance, negligent performance or
nonperformance of the described maintenance, restoration, repair or replacement work by the City, or arising out
of the negligence of any contractor under any contract let by the City for the performance of said work; and the
City agrees to defend, save and keep said County, its officers, agents and employees harmless from all claims,
demands, actions or causes of action arising out of negligent performance by the City, its officers, agents or
employees.
10. It is further agreed that neither the City, its officers, agents or employees, either in their individual or
official capacity, shall be responsible or liable in any manner to the County for any claim, demand, action or
cause of action of any kind or character arising out of, allegedly arising out of or by reason of the performance,
negligent performance or nonperformance of the described maintenance, restoration, repair or replacement work
by the County, or arising out of the negligence of any contractor under any contract let by the County for the
performance of said work; and the County agrees to defend, save and keep said City, its officers, agents and
employees harmless from all claims, demands, actions or causes of action arising out of negligent performance
by the County, its officers, agents or employees.
11. It is further agreed that each party to this Agreement shall not be responsible or liable to the other or to
any other person or entity for any claims, damages, actions, or causes of actions of any kind or character arising
out of, allegedly arising out of or by reason of the performance, negligent performance or nonperformance of
any work or part hereof by the other as provided herein; and each party further agrees to defend at its sole cost
and expense any action or proceeding commenced for the purpose of asserting any claim of whatsoever
character arising in connection with or by virtue of performance of its own work as provided herein.
12. It is further agreed that any and all employees of the City and all other persons engaged by the City in the
performance of any work or services required or provided herein to be performed by the City shall not be
considered employees, agents or independent contractors of the County, and that any and all claims that mayor
might arise under the Worker's Compensation Act or the Unemployment Compensation Act of the State of
Minnesota on behalf of said City employees while so engaged and any and all claims made by any third parties
as a consequence of any act or omission on the part of said City employees while so engaged shall be the sole
responsibility of the City and shall not be the obligation or responsibility of the County.
3
CSAH 21 Premiere Dance Academy
City of Prior Lake
County of Scott
Any and all employees of the County and all other persons engaged by the County in the performance of
any work or services required or provided for herein to be performed by the County shall not be considered
employees, agents or independent contractors of the City, and that any and all claims that mayor might arise
under the Worker's Compensation Act or the Unemployment Compensation Act of the State of Minnesota on
behalf of said County employees while so engaged and any and all claims made by any third parties as a
consequence of any act or omission on the part of said County employees while so engaged in any of the work
or services provided to be rendered herein shall be the sole responsibility of the County and shall not be the
obligation or responsibility of the City.
13. The provisions of Minn. Stat. Sec. 181.59 and of any applicable local ordinance relating to Civil Rights
and discrimination and the affirmative action policy statement of Scott County shall be considered a part of this
Agreement as though fully set forth herein. See Exhibit "A".
14. Pursuant to Minn. Stat. Sec. 16C.05, subd. 5 (2004), the books, records, documents, and accounting
procedures and practices of the County and City pursuant to this Agreement shall be subject to examination by
the County, City and the State Auditor. Complete and accurate records of the work performed pursuant to this
Agreement shall be kept by the County and City for a minimum of six (6) years following termination of this
Agreement for such auditing purposes. The retention period shall be automatically extended during the course of
any administrative or judicial action involving the County or the City regarding matters to which the records are
relevant. The retention period shall be automatically extended until the administrative or judicial action is
finally completed or until the authorized agent of the County or City notifies each party in writing that the
records no longer need to be kept.
15. The laws of the State of Minnesota shall govern all questions and interpretations concerning the validity
and construction of this Agreement and the legal relations between the parties and performance under it. The
appropriate venue and jurisdiction for any litigation hereunder will be those courts located with the County of
Scott, State of Minnesota. Litigation, however, in the federal courts involving the parties shall be in the
appropriate federal court within the State of Minnesota.
16. In the event any provision of this Agreement shall be held invalid and unenforceable, the remaining
provisions shall be valid and binding upon the parties unless such invalidity or non-enforceability woilld cause
the Agreement to fail its purpose. One or more waivers by either party of any provision, term, condition or
covenant shall not be construed by the other party as a waiver of a subsequent breach of the same by the other
party.
4
CSAH 21 Premiere Dance Academy
City of Prior Lake
County of Scott
17. The County's Authorized Agent for the purpose of the administration of this Agreement is Maria A.
Heller, Public Works Technician, or her successor. Her current address and phone number are Scott County
Highway Department, 600 Country Trail East, Jordan, MN 55352, (952) 496-8369.
The City's Authorized Agent for the purpose of the administration of this Agreement is Steve Albrecht,
City Engineer, or his successor. His current address and phone number are 17073 Adelmann St. SE, Prior Lake,
MN 55372, (952) 447-9890. Any change in name, address, or telephone shall be noticed to the other party.
5
IN TESTIMONY WHEREOF, The parties hereto have caused this Agreement to be executed
by their respective duly authorized officers as of the day and year first above written.
CITY OF PRIOR LAKE
(SEAL)
By
Jack Haugen, Mayor
And
Frank Boyles, City Manager
Date
Date
COUNTY OF SCOTT
ATTEST:
By
David Unmacht, County Administrator
By
Barbara Marschall, Chair of Its County Board
Date
Date
Upon proper execution, this agreement
will be legally valid and binding.
RECOMMEND FOR APPROVAL:
By
Pat Ciliberto, County Attorney
By
Mitchell J. Rasmussen, County Engineer
Date
Date
APPROVED AS TO EXECUTION:
By
Pat Ciliberto, County Attorney
Date
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EXHIBIT A
I
I
POLICY STATEMENT
It is the policy of Scott County Govemment to provide Equal Opportunity to all employees and
applicants for employment in accordance with all applicable Equal Employment Opportunity
laws, directives, and regulations of Federal, State, and local governing bodies or agencies
thereof, including Minnesota Statutes, Chapter 363.
Scott County will not engage in any employment practices which discriminate against or
harass any employee or applicant for employment because of race, color, creed, religion,
national origin, sex. disability, age. martial status, sexual orientation, or status with regard to
publiC assistance. Such employment practices include, but are not limited to, the following:
hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, selection, layoff,
disciplinary action, termination, rates of payor other forms of compensation, and selection for
training, including apprenticeship.
Further, Scott County fully supports incorporation of nondiscrimination rules and regulations
into contracts and will commit the necessary time and resources to achieve the goals of Equal
Employment Opportunity.
Any employee of the County who does not comply with the Equal Employment Opportunity
Policies and Procedures set forth in this Statement and Plan will be subject to disciplinary
action. Any subcontractor of the County not complying with all applicable Equal Employment
Opportunity laws, directives, and regulations of Federal, State, and local governing bodies or
agencies thereof, including Minnesota Statutes, Chapter 363, will be subject to appropriate
contractual sanctions.
Scott County has designated the Employee Relations Director as the manager of the Equal
Opportunity Program. These responsibilities win include monitoring all Equal Employment
Opportunity activities and reporting the effectiveness of this program, as required by Federal,
State, and local agencies. The Scott County Administrator will receive and review reports on
the progress of the program. If any employee or applicant for employment believes he or she
has been discriminated against, please contact the Scott County Employee Relations Director,
Scott County Employee Relations, Government Center Room 201, 200 Fourth Avenue West.
Shakopee, Minnesota 55379-1220, or call (952) 496--8103.
dtJ~
ta~ J. Unmadrt
Scott County Administrator
t!aJ.r-J/l~ (11,4 It 4!/ti1f!{
Barbara Marschall Date 1/212007
Chair, Board of Commissioners
Date 1/21007
DEVELOPMENT CONTRACT
PREMIERE DANCE ACADEMY
PROJECT #06-121
This SHORT FORM DEVELOPMENT CONTRACT is entered into this 5th day of March,
2007, by and between the CITY OF PRIOR LAKE, a Minnesota municipal corporation ("City"), and
Dawn Schu1berg, an individuallbusiness owner of Premiere Dance Academy (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 SITE PLAN APPROVAL. The Developer has asked the City to approve
a Site Plan for Premiere Dance Academy (referred to in this Development Contract as the "Plan"). The
land is legally described as: Lot 13, Block 13 & Lot 14 & W 12' of Lot 12, Scott County, Minnesota.
2. CONDITIONS OF SITE PLAN APPROVAL. The City hereby approves the Plan on
condition that the Developer enter into this Development Contract, and record the Development Contract
with the County Recorder or Registrar of Titles within 90 days after the City Council approves the
Development Contract.
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3. DEVELOPMENT PLANS. The Site Plan shall be developed in accordance with the Plans
identified below. 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 plan varies from
the written terms of this Development Contract, the more specific or stringent controls shall apply. The
Plan includes:
Plan A --
Site Plan Dated February 9,2007 (prepared by David Linner)
Plan B --
Grading, Drainage, Erosion Control, and Utility Plans Dated February 13,
2007 (prepared by RLK Incorporated)
The plans set forth above is incorporated herein and made part of this Development Contract.
4. LICENSE. The Developer hereby grants the City, its agents, employees, officers and
contractors a non-revocable license to enter the property to perform all work and inspections deemed
appropriate by the City in conjunction with the development of the Plat.
5. EROSION CONTROL. Prior to initiating site grading, the erosion control plan shall be
implemented by the Developer and inspected and approved by the City. The City may impose, at no cost
to the City, additional erosion control requirements if they are necessary to meet erosion control
objectives. 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, no development,
utility or street construction will be allowed until the site is in full compliance with the erosion control
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requirements. Further, no building permits will be issued if the site fails to conform to the approved
erosion control plan or if any costs remain unpaid beyond the three allowed under this paragraph. The
notice provisions set out in Paragraph 15 shall not apply to notifications to the Developer under this
paragraph.
6. CLEAN UP. The Developer shall clean dirt and debris from streets that has resu1ted from
any and all construction work by the Developer, homebuilders, contractors and subcontractors, their agents
or assigns. Prior to any construction in the site, the Developer shall identify, in writing, a responsible party
and schedu1e 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 issue a stop work order on the site and no further building permit inspections will
be performed until all costs are paid. The notice provisions set out in Paragraph 15 shall not apply to
notifications to the Developer under this paragraph.
7. PLACEMENT OF FILL ON CSAH 21 RIGHT-OF-WAY. The Developer shall be
reimbursed for the placement of fill on the CSAH 21 right-of-way as shown on the approved Grading and
Erosion Control Plan, and as detailed in the Cooperative Agreement between the City and Scott County
attached as Exhibit A to this Contract. The total reimbursement is estimated to be $6,072, and not to
exceed $6,600 (if the fill in the right-of-way exceeds 1,000 yards, the developer shall be responsible for the
remaining fill necessary). Prior to reimbursement the Developer must submit a request for reimbursement
to the City. The City Engineer will verify that all work has been completed in accordance with the plans
and specifications prior to recommending reimbursement. Reimbursement requests are limited to one per
month and must be submitted by the 1 st of each month to be considered by the City Council at their 2nd
meeting on the 3rd Monday of each month.
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8. DEVELOPER PROVIDED CONSTRUCTION SERVICES The Developer shall be
responsible for providing all other construction services including, but not limited to:
A. Construction surveying
B. As-built drawings of grading plans.
C. As-built record drawings showing location, dimensions and elevations of all utility
improvements, including but not limited to top nut of hydrants, manhole rims, manhole inverts. (Field tie
dimensions to sewer and water services shall be provided to the Developer's Engineer, by City staff or City
consu1tants.) As-built record drawings shall follow the requirements set forth in the Public Works Design
Manual (pWDM). The as-built record drawings shall be submitted to the City for approval within six (6)
months of substantial base pavement course placement.
D. Project Testing: The Developer is responsible, at the Developer's sole cost, to
provide testing to certify that Developer Installed Improvements were completed in compliance with the
approved final plans and specifications. The personnel performing the testing shall be certified by the
Minnesota Department of Transportation. The City Engineer has the sole discretion to determine if
additional testing is necessary. The cost of additional testing is to be paid by the Developer.
E. Lot corners and monuments.
9. 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. Pursuant to Paragraphs 6 and 7 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. In the event the Developer fails to reimburse the City, the City will not issue
any further building permits.
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10. SECURITY. To guarantee compliance with the terms of this Development Contract,
payment of the costs of all Developer Installed Improvements, and construction of all Developer Installed
Improvements, the Developer shall furnish the City with an Irrevocable Letter of Credit in an amount equal
to 125% of the estimated Developer Improvement Costs. The Irrevocable Letter of Credit ("Security")
shall be in the form attached hereto as Exhibit B, from a bank for $37,811.00. The amount of the Security
was calcu1ated as follows:
DEVELOPER INSTALLED IMPROVEMENTS COSTS:
$ 28,365.00
ESTIMATED DEVELOPER INSTALLED IMPROVEMENTS SUBTOTAL $
28.365.00
$
X 1.25
35,456.00
PLSL Watershed District LOC
GradingLOC
$
$
1,875.00
480.00
TOTAL FOR IRREVOCABLE LETTER OF CREDIT AMOUNT
$
37,811.00
This breakdown is for historical reference; it is not a restriction on the use of the Security. The
bank on which the Irrevocable Letter of Credit is drawn shall be subject to the approval of the City. The
bank shall be authorized to do business in the State of Minnesota with a principal branch located within the
seven County Twin City Metropolitan area. The Security shall be for a term ending December 31, 2008
unless otherwise approved by the City Engineer. The Irrevocable 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 January 1st of each year), the Bank delivers written notice to the Prior Lake City Manager
that it intends to modify the terms of, or cancel, the Irrevocable 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
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Manager at least forty-five (45) days prior to the renewal date. If the required Developer Installed
Improvements are not completed at least thirty (30) days prior to the expiration of the Security, the City
may draw on the Irrevocable Letter of Credit. If the Security is drawn down, the proceeds shall be used to
cure the default.
11. REDUCTION OF SECURITY. Upon receipt of proof satisfactory to the City that the
required portions of the Developer installed improvements have been satisfactorily completed and financial
obligations to the City have been satisfied, the Security may be reduced by seventy-five percent (75%) of
the financial obligations that have been satisfied upon written authorization by the City Engineer. Any
requests for reductions in the Security must be made in writing to the City Engineer and must be
accompanied by lien waivers from any contractor or subcontractor for the Developer. Twenty-five percent
(25%) of the Security shall be retained until all Developer Installed Improvements and other obligations
under this Development Contract have been completed, including, but not limited to, all fmancial
obligations to the City, and the receipt of all required as-built street, utility and grading plans by the City.
Once the City has accepted the project, as-builts have been completed, all punch list items are completed
and warranty bonds submitted, the Irrevocable Letter of Credit may be reduced to 5%. Upon completion of
the warranty period the 5% Irrevocable Letter of Credit may be released.
In no event shall the five
percent (5%) Security be released until the Developer provides the City Engineer with a certificate from the
Developer's registered land surveyor stating that all irons have been set following site grading and utility
and street construction.
12. NOTICES. Required Notices to the Developer regarding Paragraphs 6 an 7 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: 16210 Eagle Creek Avenue, #101, Prior Lake, MN
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
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Lake, 4646 Dakota Street, 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, 600 US Bank Plaza South, 220 South Sixth Street, Minneapolis, Minnesota, 55402-4501.
13. INDEMNIFICATION. 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, resu1t from or relate to this Development Contract. The responsibility to indemnify and
hold the City harmless from claims arising out of or resu1ting 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.
14. 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 resu1t 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 harmless provisions set out in Paragraph 16 shall apply to said actions.
15. 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 ninety (90) 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 property and/or has obtained consents to this Development Contract, in the form attached hereto,
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from all parties who have an interest in the property; that there are no unrecorded interests in the property;
and that the Developer indemnifies and holds the City harmless for any breach of the foregoing covenants.
16. WARRANTY. The Developer warrants all Developer Installed Improvements required to be
constructed by it pursuant to this Development Contract against poor material and fau1ty workmanship.
The Developer shall post warranty bonds in the amount of twenty-five (25%) of the improvements as
security. The warranty period for streets is one (1) year. The warranty period for underground utilities is
one (1) year. The warranty period on Developer Installed Improvements shall commence on the date the
City Council adopts a resolution accepting the improvements. All punch list items must be completed and
"as-built" drawings received prior to the commencement of the warranty period. The retained Security may
be used by the City to pay for warranty work. The City standard specifications for utilities and street
construction identify the procedures for final acceptance of streets and utilities. These standards are set out
in the Public Works Design Manual.
17. INSURANCE REOUJREMENTS. 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 Improvements, 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
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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.
18. 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
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. 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 particu1ar section or subdivision, refer to this Development Contract as a
whole rather than to any particu1ar section or subdivision hereof. Titles in this Development Contract are
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inserted for convenience of reference only and shall be disregarded in constructing or interpreting any of its
provisions.
F. Jurisdicition. This Development Contract shall be governed by the laws of the
State of Minnesota.
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CITY OF PRIOR LAKE
(SEAL)
By:
Jack G. Haugen, Mayor
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
4646 Dakota Street SE
Prior Lake, Minnesota 55372
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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
4646 Dakota Street SE
Prior Lake, Minnesota 55372
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EXlDBIT "A"
TO
DEVELOPMENT CONTRACT
Cooperative Agreement:
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EXHIBIT "B"
TO
DEVELOPMENT CONTRACT
Estimated Improvement Costs:
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