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1997 Grading Contract . GRADING CONTRACT City of Albertville Cedar Creek Golf Course Property AGREEMENT dated November , 1997 by and between the CITY OF ALBERTVILLE, a municipal corporation ("City"), and PILOT LAND DEVELOPMENT COMPANY, INC., a Minnesota corporation (the "Developer"). 1. REQUEST FOR GRADING APPROVAL. The Developer has asked the City to approve the grading for the Golf Course area (referred to in this contract as the "Golf Course"). The City has granted PUD concept approval for the Cedar Creek PUD, and the Developer now desires to grade the Golf Course before fmal approval of the Golf Course is granted by the City. 2. CONDITIONS OF APPROVAL. The City hereby approves the grading on the condition the Developer enter into this Contract, abide by its terms and furnish the security required by it. 3. GRADING AND DRAINAGE PLAN. The Golf Course shall be graded in accordance with the Grading and Drainage plan dated , 1997 and on file with the City of Albertville, but the City engineer shall have the authority to limit the timing of the grading with respect to any grading action which affects the flow of water in County Ditch #9, said limitation to be applied by the City Engineer after consultation with the Wright County Soil and Water Conservation District and/or the Wright County Board. The plan shall not be attached to this permit. If the plan varies from the written terms of this permit, the written terms of this agreement shall control. 4. TIME OF PERFORMANCE. The Developer shall complete the grading and erosion control by October 31, 1998. The Developer may, however, request an extension of time from the City. If an extension is granted, it shall be conditioned upon updating the security posted by the Developer to reflect cost increases (if any) and the extended completion date. 5. EROSION CONTROL. Developer shall implement all erosion control measures detailed on the Grading and Drainage plan (including construction of all ponds) in the order required by the City Engineer. Developer shall also implement any additional erosion control measures required by the City Engineer or the Wright County Soil and Water Conservation District. All areas disturbed by the excavation and backfIling operations shall be reseeded forthwith after the completion of the work in that area. Except as otherwise provided in the erosion control plan, seed shall be rye grass or other fast- growing seed suitable to the existing soil to provide a temporaty ground cover as rapidly as possible. All seeded areas shall be mulched and disc anchored as necessary for seed 1 retention. The parties recognize that time is of the essence in controlling erosion. If the Developer does not comply with the erosion control plan and/or the requirements of the City Engineer or Wright County Soil and Water Conservation District, the City may take such action as it deems appropriate to control erosion, and the landowner hereby grants the City permission to enter upon the land and take such necessary erosion control actions.. 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. If the Developer does not reimburse the City for any cost the City incurred for such work within thirty (30) days, the City may draw down the letter of credit to pay any costs. No development will be allowed and no building permits will be issued unless the Golf Course is in full compliance with the erosion control requirements. 6. "AS BUILT" GRADING PLAN. Within thirty (30) days after completion of the grading and before the City releases the security, the Developer shall provide the City with an "as constructed" grading plan. 7. CLEAN UP. The Developer shall promptly clean dirt and debris from streets that has resulted from construction work by the Developer, its agents or assigns. 8. SECURITY. To guarantee compliance with the terms of this permit and to reimburse the City for any damage to public property as a result of the grading permitted herein, the Developer shall furnish the City with a cash escrow or irrevocable letter of credit from a bank ("security") for $2,000 for each acre to be filled, excavated or graded. The bank and form of the letter of credit shall be subject to the approval of the City Attorney. The letter of credit shall be for a term ending November 30, 1998, and shall be renewed annually by the Developer until all grading is complete as specified herein. The City reserves the right to draw on the letter of credit anytime within 45 days of its expiration if the Developer does not provide the City with a renewal or an acceptable substitute letter of credit. 9. RESPONSIBILITY FOR COSTS. A. Except as otherwise specified herein, the Developer shall pay all costs incurred by it or the City in conjunction with the grading and erosion control, including but not limited to Soil and Water Conservation District charges, legal, planning, engineering and inspection expenses incurred in connection with approval and acceptance of the permit, the preparation of this permit, and all costs and expenses incurred by the City in monitoring and inspecting the grading and erosion control. B. The Developer shall hold the City and its officers and employees harmless from claims made by itself and third parties for damages sustained or costs incurred resulting from permit approval and work done in conjunction with it. The 2 Developer shall indemnify the City and its officers and employees for all costs, damages and expenses which the City may payor incur in consequence of such claims, including attorney's fees. C. The Developer shall reimburse the City for costs incurred in the enforcement of this permit, including engineering and attorney's fees. D. The Developer shall pay in full all bills submitted to it by the City for obligations incurred under this permit within thirty (30) days after receipt. If the bills are not paid on time, the City may halt all work and construction. 10. DEVELOPER'S DEF AUL T. In the event of default by the Developer as to any of the work to be performed by it hereunder, the City may, at its option, perform the work and Developer shall promptly reimburse the City for any expense incurred by the City, provided the Developer is first given notice of the work in default not less than 48 hours in advance. This permit is a license for the City to act, and it shall not be necessary for the City to seek a court order for permission to enter the land. When the City does any such work, the City may, in addition to its other remedies, assess the cost of such in whole or in part to the property under this agreement. 11. PLAT APPROVAL. The City's approval to grade the property is given without prejudice to the City's right to approve or deny any or all future phases of the platting and/or PUD process. CITY OF ALBERTVILLE BY: Mark Olson, Mayor ATTEST: Linda Houghton, City Clerk DEVELOPER: PILOT LAND DEVELOPMENT COMPANY, INC. BY: Its President 3 STATE OF MINNESOTA) ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of , 1997, by Mark Olson as Mayor of the City of Albertville, a Minnesota municipal corporation, on behalf of the city and pursuant to the authority of the City Council. Notary Public STATE OF MINNESOTA) ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of , 1997, by Linda Houghton, as Clerk of the City of Albertville, a Minnesota municipal corporation, on behalf of the city and pursuant to the authority of the City Council. Notary Public STATE OF MINNESOTA) ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of , 1997, by Kent Roessler, as President of Pilot Land Decvelopment Company, Inc. Notary Public 4 TIllS INSTRUMENT DRAFTED BY: Michael C. Couri Radzwill & Couri P.O. Box 369 705 Central Ave. E St. Michael, MN 55376 5