HomeMy WebLinkAboutContract 1864
DEVELOPMENT CONTRACT FOR
PLAT OF
PARK VIEW, Phase I
ANOKA COUNTY, MINNESOTA
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INDEX TO CITY OF COLUMBIA HEIGHTS
DEVELOPMhNTCONTRACTFOR
PARK VIEW, ANOKA COUNTY, MINNESOTA
RECITALS
ARTICLE 1 - DEFINITIONS
1.1 Tenns
1.2 City of Columbia Heights
1.3 Developer, Owner
1.4 Plat
1.5 Development Plans
1.6 Development Contract
1.7 Council
1.8 PWD
1.9 Director of PWD
1.10 County
1.11 Developer Improvements
1.12 Developer Public Improvements
1.13 Developer Default
1.14 Force Majeure
1.15 Developer Warranties
A. Authority
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B. No Default
C. Present Compliance With Laws
D. Continuing Compliance With Laws
E. No Litigation
F. Full Disclosure
G. Two Year Warranty On Proper Work and Materials
H. Obtaining Pemlits
1.16 City Warranties
A. Authority
1.17 Formal Notice
ARTICLE 2 - DEVELOPER IMPROVEMENTS
2.1 Developer Improvements
2.2 Boulevard and Area Restoration
2.3 Street Maintenance
2.4 Occupancy
2.5 Approval of Contractors and Engineer
2.6 Constmction
2.7 Inspection
2.8 Faithful Performance of Constmction Contracts
2.9 City Acceptance
ARTICLE 3 - RESPONSmILITY FOR COSTS
3.1 Developer Improvement Costs
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3.2 Enforcement Costs
3.3 Time of Payment
ARTICLE 4 - DEVELOPER WARRANTIES
4.1 Statement of Developer Warranties
ARTICLE 5 - CITY WARRANTIES
5.1 Statement of City Warranties
ARTICLE 6 - INDEMNIFICATION OF CITY
6.1 Indemnification of City
ARTICLE 7 - CITY REMEDIES UPON DEVELOPER DEFAULT
7.1 City Remedies
7.2 No Additional Waiver Implied by One Waiver
7.3 No Remedy Exclusive
7.4 Emergency
ARTICLE 8 - ESCROW DEPOSIT
8.1 Escrow Requirement
8.2 Escrow Release and Escrow Increase; Developer Improvements
ARTICLE 9 - MISCELLANEOUS
9.1 City's Duties
9.2 No Third Party Recourse
9.3 Validity
9.4 Recording
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9.5 Binding Agreement
9.6 Contract Assignment
9.7 Amendment and Waiver
9.8 Governing Law
9.9 Counterparts
9.10 Headings
9.11 Inconsistency
9.12 Access
9.13 Landscaping
9.14 Park Dedication
9.15 Record Drawings
9.16 Additional Agreements
9.17 Release of Development Contract
EXHIBIT A - LIST OF DEVELOPMENT PLANS
EXHIBIT B - DEVELOPER PUBLIC IMPROVEMENTS
EXHIBIT C - ESCROW AND PARK DEDICATION CALCULATION
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CITY OF COLUMBIA HEIGHTS
DEVELOPIWENTCONTRACTFOR
PARK VIEW, Phase I
TIDS AGREEMENT, made and entered into on the day of , 2005, by and
between the CITY OF COLUMBIA HEIGHTS, a municipality of the State of Minnesota,
(hereinafter called the CITY), and the OWNER and DEVELOPER identified herein.
RECITALS:
WHEREAS, the DEVELOPER is requesting final approval of the PLAT;
WHEREAS, the DEVELOPER has applied to the CITY for approval of the preliminary and final
plat and the DEVELOPMENT PLANS, and the same have been approved by the CITY,
WHEREAS, in conjunction with the granting of final plat approval and other approvals, the CITY
requires the installation of: a. Site Landscaping and Street Lighting.
WHEREAS, under authority granted to it, including Minnesota Statutes Chapters 412, 429 and 462,
the COUNCIL has agreed to approve the DEVELOPMENT PLANS on the following conditions:
1. That the DEVELOPER enter into this DEVELOPMENT CONTRACT, which contract
defines the work which the DEVELOPER undertakes to complete within the PLAT; AND
2. The DEVELOPER shall provide an irrevocable letter of credit, or cash deposit, in the amount
and with conditions satisfactory to the CITY, providing for the actual construction and installation of
such improvements within the period specified by the CITY.
WHEREAS, the DEVELOPER has filed four (4) complete sets of the DEVELOPMENT PLANS
with the CITY;
WHEREAS, the DEVELOPMENT PLANS have been prepared by a registered professional
engineer and have been submitted to and approved by the DIRECTOR OF THE PWD.
NOW, THEREFORE, subject to the tenns and conditions of this DEVELOPMENT CONTRACT
and in reliance upon the representations, warranties and covenants of the parties herein contained, the
CITY, OWNER and DEVELOPER agree as follows:
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ARTICLE L
DEFINITIONS
1.1 TERIViS. The following tenns, unless elsewhere defined specifically in the
DEVELOPMENT CONTRACT, shall have the following meanings as set forth
below.
1.2 CITY. "CITY" means the City of Columbia Heights, a Minnesota municipal
corporation.
1.3 DEVELOPER: OWNER, BUILDER. "DEVELOPER - OWNER" means Huset
Park Development Corporation, , a Mimlesota Corporation.
1.4 PLAT. "PLAT" means the plat of PARK VIEW, Phase I, in the City of Columbia
Heights, Anoka County, Milmesota.
1.5 DEVELOPMENT PLANS. "DEVELOPMENT PLANS" means all those plans,
drawings, specifications and surveys identified and checked on the attached Exhibit A,
and hereby incorporated by reference and made a pmi ofthis DEVELOPMENT
CONTRACT.
1.6 DEVELOPMENT CONTRACT. "DEVELOPMENT CONTRACT" means this
instant contract by and among the CITY, OWNER and DEVELOPER.
1.7 COUNCIL. "COUNCIL" means the Council of the City of Columbia Heights.
1.8 PWD. "PWD" means the Public Works DepaIiment of the City of Cohunbia Heights.
1.9 DIRECTOR OF PWD. "DIRECTOR OF PWD" means the Director of Public
Works Department of the City of Columbia Heights and his delegates.
1.10 COUNTY. "COUNTY" means Anoka County, Minnesota.
1.11 DEVELOPER IMPROVEMENTS. "DEVELOPER IMPROVEMENTS" means
mld includes all the improvements identified on the attached Exhibit B.
1.12 DEVELOPER PUBLIC IMPROVEMENTS. "DEVELOPER PUBLIC
IMPROVEMENTS" means and includes, jointly and severally, all the improvements
identified and checked on the attached Exhibit B that are further labeled "public".
DEVELOPER PUBLIC IMPROVEMENTS are improvements to be constructed by
the DEVELOPER within public right-of-way and which are to be approved and later
accepted by the CITY. DEVELOPER PUBLIC IMPROVEMENTS are part of
DEVELOPER IMPROVEMENTS.
1.13 DEVELOPER DEFAULT. "DEVELOPER DEFAULT" means and includes, jointly
and severally, any of the following or any combination thereof:
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a) failure by the DEVELOPER to timely pay the CITY any money required to be
paid under the DEVELOPMENT CONTRACT;
b) failure by the DEVELOPER to timely construct the DEVELOPER PUBLIC
IMPROVEMENTS according to the DEVELOPMENT PLANS and the CITY
standards and specifications;
c) 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;
d) breach of the DEVELOPER WARRANTIES.
1.14 FORCE MAJEURE. "FORCE MAJEURE" means acts of God, including, but not
limited to floods, ice storms, blizzards, tomadoes, landslides, lightning and
earthquakes (but not including reasonably anticipated weather conditions for the
geographic area), riots, insurrections, war or civil disorder affecting the perfonnance
of work, blockades, power or other utilitY failures, and fires or explosions.
1.15 DEVELOPER WARRANTIES. "DEVELOPER WARRANTIES" means that the
Developer hereby warrants and represents the following:
A. AUTHORITY. Developer is a corporation, validly existing and in good
standing under the laws of the State of Minnesota.
DEVELOPER has the right, power, legal capacity and authority to enter into
and perfonn its obligations under this DEVELOPMENT CONTRACT, and no
approvals or consents of any persons are necessary in connection with the
authority of DEVELOPER to enter into and perform its obligations under this
DEVELOPMENT CONTRACT.
B. NO DEFAULT. DEVELOPER is not in default under any lease, contract or
agreement to which it is a paliy or by which it is bound which would affect
perfOrmallCe under this DEVELOPMENT CONTRACT. DEVELOPER is not
a party to or bound by allY mortgage, lien, lease, agreement, instrument, order,
judgment or decree which would prohibit the execution or perfomlance of this
DEVELOPMENT CONTRACT by DEVELOPER or prohibit any of the
transactions provided for in this DEVELOPMENT CONTRACT.
C. PRESENT COMPLIANCE WITH LAWS. DEVELOPER has complied
with and is not in violation of applicable federal, state or local statutes, laws,
and regulations (including, without limitation, permits and licenses and allY
applicable zoning, enviromnental or other law, OrdlllallCe or regulation)
affecting the PLAT and the DEVELOPMENT PLANS alld the DEVELOPER
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IMPROVEMENTS; and DEVELOPER is not aware of any pending or
threatened claim of any such violation.
D. CONTINlJING COM.-PLIANCE WITH LAWS. DEVELOPER will comply
with all applicable federal, state and local statutes, laws and regulations
(including, without limitation, permits and licenses and any applicable zoning,
environmental or other law, ordinance or regulation) affecting the PLAT and
the DEVELOPMENT PLANS and the DEVELOPER IMPROVEMENTS.
E. NO LITIGATION. To the best of Developer's knowledge, and except for as
specifically contemplated by the Redevelopment Contract by and between the
parties dated October 25,2004, there is no suit, action, arbitration or legal,
administrative or other proceeding or governmental investigation pending, or
threatened against or affecting DEVELOPER, except as disclosed in writing to
the City, or the PLAT, or the DEVELOPMENT PLANS or the DEVELOPER
IMPROVEMENTS. DEVELOPER is not in material default with respect to
any order, writ, injunction or decree of any federal, state, local or foreign court,
department, agency or instrumentality.
F. FULL DISCLOSURE. None of the representatives and warranties made by
DEVELOPER or made in any exhibit hereto or memorandum or writing
fumished or to be fumished by DEVELOPER or on its behalf contains or will
contain any untrue statement of material fact or omit any material fact the
omission of which would be misleading.
G. TWO YEAR WARRANTY ON PROPER WORK AND MATERIALS.
The DEVELOPER warrants all work required to be performed by it under tIns
DEVELOPMENT CONTRACT against poor material and faulty workmanship
for a period of two (2) years after its completion and acceptance by the CITY.
The DEVELOPER shall be solely responsible for all costs of performing repair
work required by the CITY within thirty (30) days of notification.
H. OBTAINING PERMITS. The DEVELOPER shall obtain in a timely
manner and pay for all required permits, licenses and approvals, and shall
meet, in a timely manner, all requirements of all applicable, local, state and
federal laws and regulations which must be obtained or met before the
DEVELOPER IMPROVEMENTS may be lawfully constructed.
1.16 CITY WARRANTIES. "CITY WARRANTIES" means that the CITY hereby
warrants and represents as follows:
A. AUTHORITY. CITY is a municipal corporation duly incorporated and
validly existing in good standing the laws of the State of Minnesota.
CITY has the right, power, legal capacity and authority to enter into and
perform its obligations under tins DEVELOPMENT CONTRACT.
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1.17 FORMAL NOTICE. "FORMAL NOTICES" means notices given by one party to
the other if in writing and if and when delivered or tendered either in person or by
depositing it in the United States Mail and in a sealed envelope, by certified mail,
return receipt requested, with postage and postal charges prepaid, addressed as
follows:
If to CITY:
City of Columbia Heights
Attention: City Manager
590 40th Avenue N.E.
Columbia Heights, Minnesota 55413
If to DEVELOPER
Huset Park Development Corporation
c/o Brad Schafer
500 Banks Building
615 First Avenue NE
Minneapolis, Minnesota 55413, and
or to such other address as the party addressed shall have previously designated
by notice given in accordance with this Section. Notices shall be deemed to have
been duly given on the date of service if served personally on the party to whom
notice is to be given, or on the third day after mailing if mailed as provided
above, provided, that a notice not given as above shall, if it is in writing, be
deemed given if and when actually received by a party.
ARTICLE 2
DEVELOPER IMPROVEMENTS
2.1 DEVELOPER IMPROVEMENTS. The DEVELOPER shall install, at its own
cost, the DEVELOPER IMPROVEMENTS in accordance with the DEVELOPMENT
PLANS. The DEVELOPER IMPROVEMENTS shall be completed by the dates
shown on Exhibit B, except as completion dates are extended by subsequent resolution
of the COUNCIL. Failure of the CITY to promptly take action to enforce this
DEVELOPMENT CONTRACT after expiration oftime in which the DEVELOPER
IMPROVEMENTS are to be completed shall not waive or release any rights of the
CITY; the CITY may take action at any time thereafter, and the tenns ofthis contract
shall be deemed to be automatically extended until such time as the DEVELOPER
IMPROVEMENTS are completed to the CITY's reasonable satisfaction.
2.2 BOULEVARD AND AREA RESTORATION. The DEVELOPER shall lay
cultured sod or hydroseed in all boulevards within 21 days of the completion of street
related improvements and restore all other areas disturbed by the development grading
operation in accordance with the approved erosion control plan, over the entire PLAT.
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2.3 STREET MAINTENANCE. The DEVELOPER shall clear, on a daily basis, any
soil, earth or debris from the streets and wetlands within or adjacent to this PLAT
resulting from the grading or building on the land within the PLAT by the
DEVELOPER or its agents, and shall restore to the CITY's specifications any gravel
base contaminated by mixing construction or excavation debris, or earth in it, and
repair to the CITY's specifications any damage to bituminous surfacing resulting from
the use of construction equipment.
2.4 OCCUPANCY. Unless otherwise agreed to by the City, no certificate of occupancy
and no occupancy of any building in the PLAT shall occur until the DEVELOPER
IMPROVEMENTS have been installed, except for the Site Landscaping and Site
Street Lighting, which may be a condition subsequent.
2.5 APPROVAL OF CONTRACTORS AND ENGINEER. Any contractor or engineer
preparing plans and specifications selected by the DEVELOPER to design, construct
or install any DEVELOPER PUBLIC IMPROVEMENTS must be approved in writing
by the DIRECTOR OF PWD, which approval shall not be unreasonably withheld;
provided however that the CITY hereby specifically approves Frattalone Companies,
Inc., BKBM Engineers, and RLK-Kuusisto for such purposes.
2.6 CONSTRUCTION. The construction, installation, materials and equipment related
to DEVELOPER PUBLIC IMPROVEMENTS shall be in accordance with the
DEVELOPMENT PLANS. The DEVELOPER shall cause the contractors to furnish
the PWD with a written schedule of proposed operations, subcontractors and material
suppliers, at least five (5) days prior to commencement of construction work. The
DEVELOPER shall notify the CITY in writing, coordinate and hold a pre-construction
conference with all affected parties at least three (3) days prior to starting construction
of any DEVELOPER PUBLIC IMPROVEMENTS.
2.7 INSPECTION. The PWD or its designated representative, shall periodically inspect
the work installed by the DEVELOPER, its contractors, subcontractors or agents. The
DEVELOPER shall notify the PWD two (2) working days prior to the COlllillencement
of the laying of utility lines, sub grade preparation, the laying of gravel base for street
construction or any other improvement work which shall be subsequently buried or
covered to allow the CITY an opportunity to inspect such improvement work. Upon
receipt of said notice, the City shall have a reasonable time, not to be less than three
(3) working days, to inspect the improvements. Failure to notify the CITY to allow it
to inspect said work shall result in the CITY'S right pursuant to Article 8 to withhold
the release of any portion of the escrow amount resulting from work being perfonned
without the opportunity for adequate CITY inspection.
2.8 FAITHFUL PERFORMANCE OF CONSTRUCTION CONTRACTS. The
DEVELOPER shall fully and faithfully comply with all telms of any and all contracts
entered into by the DEVELOPER for the installation and construction of all of the
DEVELOPER PUBLIC IMPROVEMENTS; and the DEVELOPER shall obtain lien
waivers. Within thirty (30) days after FORMAL NOTICE, the DEVELOPER agrees
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to repair or replace, as directed by the CITY and at the DEVELOPER's sole cost and
expense, any work or materials that within one (1) year after acceptance of the
DEVELOPER PUBLIC IMPROVEMENTS by the CITY becomes defective in the
commercially reasonable judgm_ent of the City.
2.9 CITY ACCEPTANCE. The DEVELOPER shall give FORMAL NOTICE to the
CITY within thirty (30) days once DEVELOPER PUBLIC IMPROVEMENTS have
been completed in accordance with this DEVELOPMENT CONTRACT and the
ordinances, CITY standards and specifications and the DEVELOPMENT PLANS.
The CITY shall then inspect the DEVELOPER PUBLIC IMPROVEMENTS and
notify the DEVELOPER of any DEVELOPER PUBLIC IMPROVEMENTS that do
not so confonn. Upon compliance with this DEVELOPMENT CONTRACT and
CITY ordinances, standards and specifications, and the DEVELOPMENT PLANS,
the DEVELOPER PUBLIC IMPROVEMENTS shall become the property of the
CITY upon FORMAL NOTICE of acceptance by the CITY. After acceptance, the
DEVELOPER PUBLIC IMPROVEMENTS become the property of the CITY. If the
DEVELOPER PUBLIC IMPROVEMENTS do not conform, FORMAL NOTICE
shall be given to the DEVELOPER of the need for repair or replacement.
ARTICLE 3
RESPONSIBILITY FOR COSTS
3.1 DEVELOPER IMPROVEMENT COSTS. The DEVELOPER shall pay for the
DEVELOPER IMPROVEMENTS; that is, all costs of persons doing work or
fumishing skills, tools, machinery or materials, or insurance premiums or equipment
or supplies and all just claims for the same; and the CITY shall be under no obligation
to pay the contractor or any subcontractor any sum whatsoever on account thereof,
whether or not the CITY shall have approved the contract or subcontract.
3.2 ENFORCEMENT COSTS. The DEVELOPER shall pay the CITY for costs
incuned in the enforcement of this DEVELOPMENT CONTRACT, including
engineering and attomeys' fees.
3.3 TIME OF PAYMENT. The DEVELOPER shall pay all bills from the CITY within
thirty (30) days after billing. Bills not paid within thirty (30) days shall accrue interest
at the rate of 6% per year.
ARTICLE 4
DEVELOPER WARRANTIES
4.1 STATEMENT OF DEVELOPER WARRANTIES. The Developer hereby makes
and states the DEVELOPER WARRANTIES.
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ARTICLE 5
CITY WARRANTIES
5.1 STATEMENT OF CITY W.t\.J1IlA.-NTIES. The City hereby makes and states the
CITY WARRANTIES.
ARTICLE 6
INDEMNIFICATION
6.1 INDEMNIFICATION OF THE CITY. DEVELOPER shall indenmify, defend and
hold the CITY its COUNCIL, agents, employees, artomeys and representatives
harmless against and in respect of any and all claims, demands, actions, suits,
proceedings, losses, costs, expenses, obligations, liabilities, damages, recoveries, and
deficiencies, including interest, penalties and artomeys' fees, that the CITY incurs or
suffers, which arise out of, results from or relates to:
a) breach by the DEVELOPER of the DEVELOPER WARRANTIES;
b) failure of the DEVELOPER to timely construct the DEVELOPER PUBLIC
IMPROVEMENTS according to the DEVELOPMENT PLANS and the CITY
ordinances, standards and specifications;
c) failure by the DEVELOPER to observe or perform any covenant, conditions,
obligation or agreement on its part to be observed or performed under this
DEVELOPMENT CONTRACT;
d) failure by the DEVELOPER to pay contractors, subcontractors, laborers, or
materialmen;
e) failure by the DEVELOPER to pay for materials;
f) failure to obtain the necessary pennits and authorizations to construct
the DEVELOPER PUBLIC IMPROVEMENTS;
g) construction of the DEVELOPMENT PUBLIC IMPROVEMENTS.
ARTICLE 7
CITY REMEDIES UPON DEVELOPER DEFAULT
7.1 CITY REMEDIES. If a DEVELOPER DEF AUL T occurs, that is not caused by
FORCE MAJEURE, the CITY shall give the DEVELOPER FORMAL NOTICE of
the DEVELOPER DEFAULT, specifying the nature of the asserted default, and the
DEVELOPER shall have to cure the DEVELOPER DEFAULT within a thirty (30)
days cure period, hereinafter defined as "CURE PERIOD". Said CURE PERIOD may
be extended by the CITY for a reasonable period of time to be determined by the
DIRECTOR OF PWD, at his sole discretion, provided that the DEVELOPER submits,
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to the CITY using the FORMAL NOTICE procedures of Section 1.17 within the
CURE PERIOD, a reasonable plan or contract bid that demonstrates that it is
impractical to cure the DEVELOPER DEF AUL T within the CURE PERIOD. If the
DEVELOPER, after FORlv1AL NOTICE to it by the CITY, does not cure the
DEVELOPER DEF AUL T within the CURE PERIOD or DIRECTOR OF PWD
approved extension thereof, then the CITY may avail itself of any remedy afforded by
law and any of the following remedies.
a) the CITY may specifically enforce this DEVELOPMENT
CONTRACT;
b) the CITY may suspend any work improvement or obligation to be
performed by the CITY;
c) the CITY may collect on the irrevocable letter of credit or cash deposit;
d) the CITY may deny building and occupancy pel1nits for buildings
within the PLAT;
e) the CITY may, at its sole option, perfOlm the work or improvements to
be perfol1ned by the DEVELOPER, in which case the DEVELOPER
shall within thirty (30) days after written billing by the CITY reimburse
the CITY for any costs and expenses incurred by the CITY. In the
alternative, the CITY may in whole or in part, specially assess any of
the costs and expenses incurred by the CITY; and the DEVELOPER
and OWNER hereby waive any and all procedural and substantive
objections to the installation and construction of the work and
improvements and the special assessment resulting there from,
including but not limited to notice and hearing requirement and any
claim that the special assessments exceed benefit to the PLAT. The
DEVELOPER and OWNER hereby waive any appeal rights up to the
amount indicated on Exhibit 'C' pursuant to Minn. Stat. 429.081.
7.2 NO ADDITIONAL WAIVER IMPLIED BY ONE WAIVER. In the event any
agreement contained in this DEVELOPMENT CONTRACT is breached by the
DEVELOPER and thereafter waived in writing by the CITY, such waiver shall be
limited to the particular breach so waived and shall not be deemed to waive any other
concurrent, previous or subsequent breach hereunder. All waivers by the CITY must
be in writing.
7.3 NO REMEDY EXCLUSIVE. No remedy herein conferred upon or reserved to the
CITY shall be exclusive of any other available remedy or remedies, but each and
every such remedy shall be cumulative and shall be in addition to every other remedy
given under the DEVELOPMENT CONTRACT or now or hereafter existing at law or
in equity or by statute; provided however that the CITY shall not have the power to
exercise both the remedy provided by Section 7.1(c) and, concurrently or sequentially,
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the remedy provided by Section 7 .1 (e), to the extent that the remedy in Section 7 .1 (c)
provides reimbursement to the City for any costs and expenses incurred by the City.
No delay or omission to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a waiver thereof, but any
such right and power may be exercised from time to time and as often as may be
deemed expedient. In order to entitle the CITY to exercise any remedy reserved to it,
it shall not be necessary to give notice, other than the FORMAL NOTICE.
7.4 EMERGENCY. Notwithstanding the requirement relating to FORMAL NOTICE to
the DEVELOPER in case of a DEVELOPER DEF AUL T and notwithstanding the
requirement relating to giving the DEVELOPER a thirty (30) day period to cure the
DEVELOPER DEF AUL T, in the event of an emergency as determined by the
Director ofPWD, resulting from the DEVELOPER DEFAULT, the CITY may
perform the work or improvement to be performed by the DEVELOPER without
giving any notice or FORMAL NOTICE to the DEVELOPER and without giving the
DEVELOPER a forty-eight (48) hour period to cure the DEVELOPER DEF AUL T. In
such case, the DEVELOPER shall within thirty (30) days after written billing by the
CITY reimburse the CITY for any and all costs incurred by the CITY. In the
alternative, the CITY may, in whole or in part, specially assess the costs and expenses
incurred by the CITY; and the DEVELOPER and OWNER hereby waive any and all
procedural and substantive objections to the installation and construction of the work
and improvements and the special assessments resulting there from, including but not
limited to notice and hearing requirements and any claim that the special assessments
exceed benefit to the PLAT. The DEVELOPER and OWNER hereby waive any
appeal rights up to the amount indicated on Exhibit 'c' pursuant to Minn. Stat.
429.081.
ARTICLE 8
ESCROW DEPOSIT
8.1 ESCROW REOIDREMENT. Contemporaneously herewith, the DEVELOPER
shall deposit with the CITY an irrevocable letter of credit, or cash deposit for the
amounts set forth on Exhibit C.
All cost estimates shall be acceptable to the DIRECTOR OF PWD. The total escrow
amount was calculated as shown on the attached Exhibit C. The bank and fonn of the
irrevocable letter of credit, or cash deposit shall be subject to approval by the City
Finance Director and City Attorney and shall continue to be in full force and effect
until released by the CITY pursuant to Section 8.2 below. The irrevocable letter of
credit shall be for a tenn ending December 31, 2007. In the alternative, the letter of
credit may be for a one year tenn provided it is automatically renewable for successive
one year periods from the present or any future expiration dates with a final expiration
date of July 31,2007, and further provided that the irrevocable letter of credit states
that at least sixty (60) days prior to the expiration date the bank will notify the City if
the bank elects not to renew for an additional period. The in-evocable letter of credit
shall secure compliance by the DEVELOPER with the tenns of this DEVELOPMENT
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CONTRACT. The CITY may draw down on the irrevocable letter of credit or cash
deposit, without any further notice than that provided in Section 7.1 relating to a
DEVELOPER DEFAULT, for any of the following reasons:
a) a DEVELOPER DEF AUL T; or
b) upon the CITY receiving notice that the irrevocable letter of credit will
be allowed to lapse before December 31, 2007.
With CITY approval, the irrevocable letter of credit or cash deposit may be reduced
pursuant to Section 8.2 from time to time as financial obligations are paid.
8.2 ESCROW RELEASE AND ESCROW INCREASE; DEVELOPER
IMPROVEMENTS. Periodically, upon the DEVELOPER's written request and
upon completion by the DEVELOPER and acceptance by the CITY of any speCific
DEVELOPER PUBLIC IMPROVEMENTS, ninety percent (90%) ofthat portion of
the irrevocable letter of credit, or cash deposit covering those specific completed
improvements only shall be released. The final ten percent (10%) of that portion of
the irrevocable letter of credit, or cash deposit, for those specific completed
improvements shall be held until acceptance by the CITY and expiration of the
warranty period under Section 1.15 hereof; in the alternative, the DEVELOPER may
post a bond satisfactory to the CITY with respect to the final ten percent (10%).
If it is detennined by the CITY that the DEVELOPMENT PLANS were not strictly
adhered to, or that work was done without CITY inspection, the CITY may require, as
a condition of acceptance, that the DEVELOPER post an irrevocable letter of credit,
or cash deposit equal to 125% of the estimated amount necessary to correct the
deficiency or to protect against deficiencies arising there from. Said additional
irrevocable letter of credit, or cash deposit, shall remain in force for such time as the
CITY deems reasonably necessary, not to exceed two (2) years. In the event that
work, which is concealed, was done without pel111itting CITY inspection, then the
CITY may, in the alternative, require the concealed condition to be exposed for
inspection purposes.
ARTICLE 9
MISCELLANEOUS
9.1 CITY'S DUTIES. The terms of this DEVELOPMENT CONTRACT shall not be
considered an affinnative duty upon the CITY to complete any DEVELOPMENT
IMPROVEMENTS.
9.2 NO THIRD PARTY RECOURSE. Third parties shall have no recourse against the
CITY under this DEVELOPMENT CONTRACT.
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9.3 VALIDITY. If any portion, section, subsection, sentence, clause, paragraph or phrase
of this DEVELOPMENT CONTRACT is for any reason held to be invalid, such
decision shall not affect the validity ofthe remaining portion ofthis DEVELOPMENT
CONTF..p.~CT.
9.4 RECORDING. The DEVELOPMENT CONTRACT and PLAT shall be recorded
with the COUNTY Recorder and the DEVELOPER shall provide and execute any and
all documents necessary to implement the recording.
9.5 BINDING AGREEMENT. The parties mutually recognize and agree that all terms
and conditions of this recordable DEVELOPMENT CONTRACT shall run with the
PLAT and shall be binding upon the heirs, successors, administrators and assigns of
the DEVELOPER.
9.6 . CONTRACT ASSIGNMENT. The DEVELOPER may not assign this
DEVELOPMENT CONTRACT without the written permission of the COUNCIL.
The DEVELOPER's obligations 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.
9.7 AMENDMENT AND WAIVER. The parties hereto may by mutual written-
agreement amend this DEVELOPMENT CONTRACT in any respect. Any party
hereto may extend the time for the performance of any of the obligations of another,
waive any inaccuracies in representations by another contained in this
DEVELOPMENT CONTRACT or in any document delivered pursuant hereto which
inaccuracies would otherwise constitute a breach of this DEVELOPMENT
CONTRACT, waive compliance by another with any of the covenants contained in
this DEVELOPMENT CONTRACT and perfonnance of any obligations by the other
or waive the fulfillment of any condition that is precedent to the perfonnance by the
party so waiving of any of its obligations under tIns DEVELOPMENT CONTRACT.
Any agreement on the part of any party for any such amendment, extension or waiver
must be in writing. No waiver of any of the provisions of this DEVELOPMENT
CONTRACT shall be deemed, or shall constitute, a waiver of any other provisions,
whether or not similar, nor shall any waiver constitute a continuing waiver.
9.8 GOVERNING LAW. This DEVELOPMENT CONTRACT shall be govemed by
and construed in accordance with the laws of the State of Mnmesota.
9.9 COUNTERPARTS. This DEVELOPMENT CONTRACT may be executed in any
number of counterparts, each of which shall be deemed an original but all of which
shall constitute one and the same instrument.
9.10 HEADINGS. The subject headings of the paragraphs and subparagraphs oftlns
DEVELOPMENT CONTRACT are included for purposes of convenience only, and
shall not affect the construction of interpretation of any of its provisions.
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9.11 INCONSISTENCY. Ifthe DEVELOPMENT PLANS are inconsistent with the
words of this DEVELOPMENT CONTRACT or if the obligations imposed hereunder
upon the DEVELOPER are inconsistent, then that provision or term which
imposes a greater a..lld more demanding obligation on the DEVELOPER shall prevail.
9.12 ACCESS. The DEVELOPER hereby grants to the CITY, its agents, employees,
officers, and contractors a license to enter the PLAT to perfonn all inspections deemed
appropriate by the CITY during the installation of DEVELOPER IMPROVEMENTS
by the DEVELOPER.
9.13 LANDSCAPING. Installation and Maintenance. The following regulations shall
govern the installation and maintenance of landscaping and screening materials.
a) All landscaping materials and screening materials shall be installed in
corijunction with site development and prior to issuance of a final certificate of
occupancy and building. This requirement shall be based on the landscaping
and screening materials for Block 1, for each building (lot grouping).
b) A letter of credit or other security as acceptable to the CITY shall be deposited
with the Director of Public Works, in an amount equal to ten percent (10%) of
the estimated cost of landscaping and/or screening. The letter of credit or other
security as acceptable to the CITY, or portions thereof, shall be forfeited to
maintain and/or replace materials for a period of time to include at least two
(2) growing seasons, as defined by MnDOT. A portion ofthe letter of credit or
other security as acceptable to the CITY may be released after one growing
season as determined by the Director of Public Works.
c) The property owner shall be responsible for continued maintenance of
landscaping and screening materials to remain in compliance with the
requirements of tIns Section. Plant materials that show signs of disease or
damage shall be promptly removed and replaced immediately, or within the
next planting season if required by the weather.
9.14 PARK DEDICATION. Subject to reduction for all applicable existing credits in
favor ofthe Redeveloper, and except as those credits are applied to offset otherwise
applicable dedication fees as provided by the Redevelopment Contract, the City
hereby detennines Park dedication fees in the amount of $750.00 per unit, and that
such fees be paid at Final Plat Approval by the City Council, to be deposited in City
Fund 412, Parks Capital Improvements. The calculation shall be as provided in
Appendix C.
9.15 RECORD DRAWINGS. The OWNER shall provide to the CITY, upon completion
ofthe DEVELOPER IMPROVEMENTS, a complete set of Record Drawings
documenting the constructed or "as-built" condition ofthe DEVELOPER
IMPROVEMENTS. The Record Drawings shall be submitted in electronic and hard
copy fonn consistent with CITY requirements, and provided to the PWD witlnn six
(6) months of the completion ofthe DEVELOPER IMPROVEMENTS.
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9.16 ADDITIONAL AGREEMENTS.
A. OWNER hereby agrees that the CITY shall not release the PLAT to the OWNER
for recording until the OWNER has documented Land Acquisition
Agreement/Easements and a Stonn Water Pond and Appurtenances Maintenance
Agreement, which is in a fonn that is reasonably acceptable to the CITY's
attorney.
B. The DEVELOPER and OWNER hereby waive any and all procedural and
substantive objections to the installation and construction of the work and
improvements and the special assessment resulting there from, including but not
limited to notice and hearing requirement and any claim that the special
assessments exceed benefit to the PLAT for City project 0404, Huset Parkway.
The DEVELOPER and OWNER hereby waive any appeal rights pursuant to
Minn. Stat. 429.081 in conjunction with the Huset Parkway Public Improvement
Project No. 0404.
C. The OWNER and the CITY hereby agree that the maintenance costs of the large
stonn water pond located at the northeast comer of 5th Street and Huset Parkway
shall be shared by the DEVELOPMENT and CITY on an even 50/50 split. ..
Necessary maintenance activities shall be conducted or cause to be conducted by
the CITY, with said costs billed to the DEVELOPMENT by the CITY, payable
within 30 days. In order to enforce the provisions of this Section9.16(C), the
governing documents of all homeowners' associations (collectively, the "HOA")
shall be subject to the reasonable review and approval ofthe City Attorney to
assure that the HOA's documents include a requirement for said necessary storm
water pond maintenance and reimbursement to the City for fifty percent (50%) of
said cost.
9.17 RELEASE OF DEVELOPMENT CONTRACT. Upon completion of all
DEVELOPER IMPROVEMENTS and all DEVELOPER PUBLIC
IMPROVEMENTS, and upon the expiration of the Section1.15G. TWO YEAR
WARRANTY ON PROPER WORK AND MATERIALS, the DEVELOPER may
submit to the CITY a draft release of this DEVELOPMENT CONTRACT for review
and approval by the CITY's attorney. The CITY agrees to cooperate with the
DEVELOPER to process a recordable release of this DEVELOPMENT CONTRACT
for title purposes provided that said improvements have been completed and said
warranties have expired.
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IN WITNESS WHEREOF, the parties have executed this DEVELOPMENT
CONTRACT.
CITY OF COLUMBIA HEIGHTS
Bd,~
Gary PetJrson, Mayor
By:
dd8i5~
Walt Fehst, City'Manager
DEVELOPER:
HUSETPARKDEVELOPMENT
CORPORATION
By:g
Brad Schafer
P~}IXJJ
Its
STATE OF MINNESOTA )
) SSe
COUNTYOFANOKA )
On thisd.-q1!:\ day of i G--< ,2005, before me a Notary Public
within and for said County, personall ppeared to me Gary Peterson and Walt Fehst,
personally known, who being each by me duly sworn, each did say that they are respectively the
Mayor and City Manager of the City of Columbia Heights, the municipality named in the
foregoing instrument, and that the seal afIlXed to said instrument was signed and sealed in
behalf of said municipality by authority of its City Council and said Mayor and City Manager
ack..nowledged said instrument to be the free act and deed of said municipality.
- iN>
PATRICIA V. MUSCOVITZ
NOTARY PUBLIC MINNESOTA
My Comm expires 01-31.2010
STATE OF MINNESOTA )
) SSe
COUNTYOFANOKA )
On this cf?~7'I? day of ,2005, before me a Notary Public within
and for said County, personally appe rad ,S afe!Lto me personally known, who being by
me duly sworn, said that he is the 2/1/ of Huset Park Development
Corporation, named in the foregoing instrument, and that said instrument was signed in behalf
of said Huset Park Development Corporation, a Minnesota Corporation by authority of its
Board of Directors, and said Brad Schafer acknowledged said instrument to be the free act and
deed of Huset Park Development Corporation.
~riUJ-~->)~!j ~d:
(~ Notary"Public. j
-. C
MARVF $WANOON -
Notary Publio-Minnesola
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TillS INSTRUMENT DRAFTED BY:
Kevin Hansen, P .E.
Public Works Director/City Engineer
City of Columbia Heights
637 38th Avenue N.E.
Columbia Heights, MN 55421
763/706-3705
James Hoeft
City Attorney
Barna, Guzy, and Steffen, ltd
200 Coon Rapids Boulevard
Suite 400
Coon Rapids, MN
763/783-5122
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1.
PLAN DESCRIPTION
Development Plat
2.
EXIllBIT A
LIST OF DEVELOPMENT PLANS
DESIGN
PLAN DATE
5/09/05
RLK- Kuusisto
Erosion Control and Grading Plan
BKBM Engineers
6/15/05
3.
Street Plan (private)
4.
BKBM Engineers
6/15/05
Utility/Site Plan (public/Private)
BKBM Engineers
6/15/05
5.
Landscape Plan
6.
Street Light Plan
7. Other
RLK-Kuusisto
5/09/05
RLK-Kuusisto
5/09/05
- 22-
EXIllBIT B
DEVELOPERPUBLIC~ROVEMENTS
The items checked with "PUBLIC" below are those DEVELOPER IMPROVEMENTS that
are DEVELOPER-PUBLIC IMPROVEMENTS.
CHECKED COMPLETION DATE ~ROVEMENT
12/31/05 Grading Plan
X Public 12/31/05 Utilities (Sanitary Sewer
and Water Mains)
12/31/05 Utilities (Storm Sewer)
6/31/06 Streets (plat)
12/31/06 Landscaping
12/31/06 Street Lighting
Note: Pursuant to Section 2.4, all Developer Improvements must be completed prior to the
final occupancy of any building on Park View, Phase I, except for the Site Landscaping and
Site Street Lighting, which may be a condition subsequent.
- 23 -
EXIllBIT C
ESCROW AND PARK DEDICATION CALCULATION(S)
DEVELOPERIMWROVEMENTS
1.
Erosion ControI/Restoration
$ 75,000
2.
Utilities
$ 846,875
3.
Public Street Connections
$ 25,000
4.
Landscaping (inc!. Retaining Walls)
$ 470,000
5.
Street Lighting
$ 52,500
l\fUL TIPLIED BY: 1.25
EQUALS:
$ 1,836,725
For the above work, DEVELOPER shall post escrow* for $ 1.836.725.
(* Form in accordance with Section 8.1 ofthis agreement.)
1.
Park Dedication
$750.00 per unit
MULTIPLIED BY:
123 dwelling units
EQUALS
$ 92,250.00
Less: Land Area Credits
Land area contributed:
48,325 square feet
Times
$2.75 per square foot
Total land area credit
$132,893.75
Divided by Estimated total dwelling units
500
Equals
$265.79 per unit land area credit
Multiplied by
123 dwelling units
Equals
$32,692.17 Total land area credit
Net Park Dedication Fee
$59,557.83
- 24-
In addition to the letter of credit required above, the DEVELOPER shall also deposit
$25,000 in cash with the CITY contemporaneously with execution of this DEVELOPMENT
CONTRACT. This $25,000 shall be to pay the CITY for engineering site inspection fees at
the CITY's standard rates charged for such tasks. Upon acceptance of the DEVELOPER
PUBLIC IMPROVEMENTS, the CITY shall return to the DEVELOPER any remaining
portion of the $25,000 not otherwise charged against the DEVELOPER for engineering
inspection performed by the CITY. To the extent the engineering inspection fees,
calculated according to the CITY's standard rates, exceed the $25,000 deposit, the
DEVELOPER is responsible for payment of such excess within thirty (30) days after billing
by the CITY.
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