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DEVELOPMENT CONTRACT FOR
AF Columbia Heights, LLC
a
INDEX TO CITY OF COLUMBIA HEIGHTS
DEVELOPMENT CONTRACT FOR
AF Columbia Heights, LLC
RECITALS
ARTICLE I — DEFINITIONS
1.1 Terms
1.2 City ufColumbia Heights
1.3 Developer, Owner
2.4 Plot
1.5 Development Plans
1.6 Development Contract
17 Council
1.8 PVVD
1.9 Director ofPVVD
1.10 County
111 Developer Improvements
1.12 Developer Public Improvements
1.13 Developer Default
1.14 Force Majeune
1.15 Developer Warranties
A. Authority
B. No Default
C. Present Compliance With Laws
ARTICLE 3 — RESPONSIBILITY FOR COSTS
3.1 Developer Improvement Costs
3.2 Enforcement Costs
3.3 Time of Payment
D. Continuing Compliance With Laws
E. No Litigation
F. Full Disclosure
G. Two Year Warranty On Proper Work and Materials
H. Obtaining Permits
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
Construction
2.7
Inspection
2.8
Faithful Performance of Construction Contracts
2.9
City Acceptance
ARTICLE 3 — RESPONSIBILITY FOR COSTS
3.1 Developer Improvement Costs
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 QF CITY
6.1 Indemnification ufCity
ARTICLE 7— CITY REMEDIES UPON DEVELOPER DEFAULT
7.1 City Remedies
72 No Additional Waiver Implied by One Waiver
7.3 Nn 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
8.3
Validity
9.4
Recording
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
CITY OF COLUMBIA HEIGHTS
DEVELOPMENT CONTRACT FOR
AF Columbia Heights, LLC
THIS AGREEMENT, made and entered into on the day of , 2017, by and between
the CITY OF COLUMBIA HEIGHTS, a municipality of the State of Minnesota, (hereinafter referred to as
the CITY), and AF Columbia Heights, LLC (hereinafter referred to as the OWNER and DEVELOPER)
identified herein.
WHEREAS, the DEVELOPER has applied to the CITY for approval of the Plat;
WHEREAS, the CITY has approved the Plat subject to 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.
The DEVELOPER shall install two new stop signs to calm traffic entering and exiting at the Planet
Fitness and La Casita properties.
4. The DEVELOPER shall be responsible for continuing the proposed sidewalk; wrapping around the
south west side of the building and be continued to connect to the sidewalk on the north end of the
building. Additionally, the sidewalk shall empty onto 51S` Court NE.
WHEREAS, the DEVELOPER has filed Three (3) 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 terms 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:
ARTICLE L
DEFINITIONS
1.1 TERMS. The following terms, 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 AF Columbia Heights,
LLC.
1.4 PLAT. "PLAT" means the approved plat of PF Columbia Heights, in the City of Columbia
Heights, Anoka County, Minnesota.
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 part of this 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 Department of the City of Columbia 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 and 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:
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, tornadoes, landslides, lightning and earthquakes (but not
including reasonably anticipated weather conditions for the geographic area), riots,
insurrections, war or civil disorder affecting the performance 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 organized 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
perform 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 party or by which it is bound which would materially
affect performance under this DEVELOPMENT CONTRACT. DEVELOPER is not a
party to or bound by any mortgage, lien, lease, agreement, instrument, order,
judgment or decree which would prohibit the execution or performance 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 any applicable zoning,
environmental or other law, ordinance or regulation) affecting the PLAT and the
DEVELOPMENT PLANS and the DEVELOPER IMPROVEMENTS; and DEVELOPER is
not aware of any pending or threatened claim of any such violation.
D. CONTINUING COMPLIANCE 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.
NO LITIGATION. To the best of DEVELOPER'S knowledge, 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 furnished
or to be furnished 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 this DEVELOPMENT
CONTRACT for DEVELOPER installed PUBLIC IMPROVEMENTS 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 the repair work being completed.
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 this DEVELOPMENT CONTRACT.
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 40`h Avenue N.E.
Columbia Heights, Minnesota 55413
If to DEVELOPER AF Columbia Heights, LLC
Attention: Rick Petron
175 Strafford Ave., Suite 310
Wayne, PA 19087
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 of time 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 terms of this 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 hydro
seed in all boulevards within 14 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.
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 Site Plan shall occur until the DEVELOPER
IMPROVEMENTS have been installed. Unless otherwise agreed to by the City, this
provision excludes Site Landscaping and Site Street Lighting.
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.
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 commencement of
the laying of utility lines, subgrade 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 performed
without the opportunity for adequate CITY inspection.
2.8 FAITHFUL PERFORMANCE OF CONSTRUCTION CONTRACTS. The DEVELOPER shall fully
and faithfully comply with all terms 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 to repair or replace, as directed by the
CITY and at the DEVELOPER's sole cost and expense, any work or materials that within
two (2) years after acceptance of the DEVELOPER PUBLIC IMPROVEMENTS by the CITY
becomes defective in the commercially reasonable judgment 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 conform. 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 furnishing 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 incurred in the
enforcement of this DEVELOPMENT CONTRACT, including engineering and attorneys'
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.
ARTICLE 5
CITY WARRANTIES
5.1 STATEMENT OF CITY WARRANTIES. The City hereby makes and states the CITY
WARRANTIES.
ARTICLE 6
INDEMNIFICATION
6.1 INDEMNIFICATION OF THE CITY. Except for any damages or claims that arise solely
from the willful misconduct or gross negligence of the CITY, the 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, 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, 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 permits 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 DEFAULT 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, 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 DEFAULT within the
CURE PERIOD. If the DEVELOPER, after FORMAL NOTICE to it by the CITY, does not cure
the DEVELOPER DEFAULT 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 permits for buildings within
the PLAT;
e) the CITY may, at its sole option, perform the work or improvements to
be performed 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 therefrom, 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.
Upon an event of default, the limited partners of the OWNER shall have the right to cure
any such default and the CITY shall accept such default as if cured by the OWNER itself.
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, 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 DEFAULT and notwithstanding the requirement
relating to giving the DEVELOPER a thirty (30) day period to cure the DEVELOPER
DEFAULT, in the event of an emergency as determined by the Director of PWD, 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 DEFAULT. 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 REQUIREMENT. 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 form 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 term ending May 31, 2018. In the alternative, the letter of credit may be for a
one year term provided it is automatically renewable for successive one year periods
from the present or any future expiration dates with a final expiration date of December
31, 2018, 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 irrevocable letter of credit shall secure
compliance by the DEVELOPER with the terms of this DEVELOPMENT 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 DEFAULT; or
b) upon the CITY receiving notice that the irrevocable letter of credit will
be allowed to lapse before May 31, 2018.
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 %) of that 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 landscaping
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 determined 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 permitting 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
affirmative 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.
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 of the remaining portion of this DEVELOPMENT CONTRACT.
9.4 RECORDING. The 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 CITY.
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 performance of any
obligations by the other or waive the fulfillment of any condition that is precedent to
the performance by the party so waiving of any of its obligations under this
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 governed by and construed
in accordance with the laws of the State of Minnesota.
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 of this
DEVELOPMENT CONTRACT are included for purposes of convenience only, and shall not
affect the construction of interpretation of any of its provisions.
9.11 INCONSISTENCY. If the 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 and
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 perform 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
conjunction with site development and prior to issuance of a final certificate of
occupancy and building.
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, fencing and /or screening. The letter of
credit, 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. A
portion of the letter of credit may be released after one growing season as
determined by the DIRECTOR OF PUBLIC WORKS.
C) The OWNER shall be responsible for continued maintenance of fencing,
landscaping and screening materials to remain in compliance with the
requirements of this Section.
d) All DEVELOPMENT turf irrigation systems shall include rain detecting shutoff
devices to control irrigation function during wet weather.
9.14 RECORD DRAWINGS. The OWNER shall provide to the CITY, upon completion of the
DEVELOPER IMPROVEMENTS, a complete set of Record Drawings documenting the
constructed or "as- built" condition of the DEVELOPER IMPROVEMENTS. The Record
Drawings shall be submitted in electronic and hard copy form consistent with CITY
requirements, and provided to the PWD within six (6) months of the completion of the
DEVELOPER IMPROVEMENTS. Additionally, the OWNER shall include in the Record
Drawings GPS Data of all sanitary sewer and water main service locations at the service
extensions or property lines. The GPS Data shall include X, Y & Z coordinate data
consistent with City requirements.
9.15 ADDITIONAL AGREEMENTS.
A. The OWNER and the CITY hereby agree that the maintenance costs of the Site Storm
Water BMP's shall be by the DEVELOPER. The DEVELOPER shall inspect Site Storm
Water BMP's and shall be inspected annually for sediment accumulation and
function, with reports provided to the PWD. Necessary storm water maintenance or
repair activities shall be conducted or cause to be conducted by the DEVELOPER, in
the event the DEVELOPER does not repair or maintain Storm Water BMP's, the CITY
shall repair or maintain with said costs billed to the DEVELOPER by the CITY, payable
within 30 days.
B. The OWNER shall dedicate public drainage and utility easements for all Site Storm
Water BMP's.
9.17 RELEASE OF DEVELOPMENT CONTRACT. Upon completion of all DEVELOPER
IMPROVEMENTS and all DEVELOPER PUBLIC IMPROVEMENTS, and upon the expiration
of the Section 1.15G. 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.
IN WITNESS WHEREOF, the parties have executed this DEVELOPMENT
CONTRACT.
CITY OF COLUMBIA HEIGHTS
STATE OF MINNESOTA
) ss.
COUNTY OF ANOKA )
DEVELOPER: AF Columbia Heights, LLC
CY
Its: aftlIv
On this day of f 2017, before me a Notary Public within and
for said County, personally appeared o me Donna Schmitt 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
affixed to said instrument was signed and sealed in behalf of said municipality by authority of its City
Council and said Mayor and City Manager acknowledged said instrument to be the free act and deed
of said municipality.
`p r • JODiYN GRIFFIN
Natary Public- Minnesota
My Commission Expires Jan 31, 2022
No ry Public
STATE OF MINNESOTA
) ss.
COUNTY OF ANOKA )
On this day of , 2017, before me a Notary Public within and
for said County, personally appeared , to me personally known,,.Vho being by me
duly sworn, said that he is the ( �-rr ,9s / of /iF- Goc.✓ A /At6onsbehalf of said
Notary Public
COMMONWEALTH OF PENNSYLVANIA
NOTARIAL SEAL
Susan L. Renauro, Notary Public
Radnor Twp., Delaware County
My Commission Expires Aug. 13, 2018
MEMBER, PENNSYLVANIA ASSOCIATION OF NOTARIES
THIS INSTRUMENT DRAFTED BV:
BizabethHolnobeck
City Planner
City ofColumbia Heights
59040~' Avenue N.E.
Columbia Heights, K4NS5421
Kevin Hansen, P.E.
Public Works Director/City Engineer
City of Columbia Heights
63738^' Avenue N.E.
Columbia Heights, MN 55421
763/706-3705
James Hoeft
City Attorney
8arna,GurK and Steffen, ltd
2O0 Coon Rapids Boulevard
Suite 400
Coon Rapids, K4N
763/783-5122
EXHIBIT A
LIST OF DEVELOPMENT PLANS
PLAN DESCRIPTION
DESIGN
PLAN DATE
1.
Site Plan
Edward Farr Architects
12/05/16
2.
Erosion Control and Grading Plan
HTPO
12/05/16
(including the project SWPPP)
3.
Street Connections (Public)
HTPO
12/05/16
4.a
Utility/Site Plan (Private)
HTPO
12/05/16
4.b
Site Storm Water BMPs
HTPO
12/05/16
5.
Landscape Plan
HTPO
12/05/16
6.
Storm Water Pollution
HTPO
12/05/16
Prevention Plan
EXHIBIT B
DEVELOPER PUBLIC IMPROVEMENTS
The items checked with "PUBLIC" below are those DEVELOPER IMPROVEMENTS that are
DEVELOPER-PUBLIC IMPROVEMENTS.
CHECKED COMPLETION DATE IMPROVEMENT
11/31/17 Grading/Removals/Erosion Control
Plan
11/31/17 Utilities (Storm Sewer)
11/31/17 Streets (Connections)
6/31/18 Landscaping
Note: Pursuant to Section 2.4, all Developer Improvements must be completed prior to the
final occupancy of the building. Unless otherwise agreed to by the City, this provision shall
exclude Site Landscaping.
EXHIBIT C
ESCROW AND PARK DEDICATION CALCULATION(S)
DEVELOPER IMPROVEMENTS
1. SWPPP /Erosion Control /Restoration (site) $ 12,500.00
2. Utilities (Storm Sewer & BMP completion) $ 78,000.00
3. Public Street Connections /Repairs $ 6,800.00
4. Landscaping $ 46,000.00
$ 143,300.00
MULTIPLIED BY: 1.25
EQUALS: $ 145,091.25
For the above work, DEVELOPER shall post escrow* for $ 145,091.25
(* Form in accordance with Section 8.1 of this agreement.)
PARK DEDICATION FEES:
N/A
In addition to the letter of credit required above, the DEVELOPER shall also deposit $3,500 in
cash with the CITY contemporaneously with execution of this DEVELOPMENT CONTRACT. This
$3,500 shall be to pay the CITY for the past and future engineering site inspection fees with at
the CITY's standard rates charged for such tasks. The CITY represents to the DEVELOPER that
the sum of $0 is presently outstanding for such site inspection fees and that no additional
amount will be charged to the DEVELOPER for engineering site inspection fees incurred prior to
the effective date of this DEVELOPMENT CONTRACT. Upon acceptance of the DEVELOPER
PUBLIC IMPROVEMENTS, the CITY shall return to the DEVELOPER any remaining portion of the
$3,500 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 $3,500 deposit, the DEVELOPER is responsible for payment of such
excess within thirty (30) days after billing by the CITY.