2000-10-06 Development Agreement
CITY OF ALBERTVILLE DEVELOPER'S AGREEMENT
Cedar Creek North Third Addition
THIS AGREEMENT, entered into this G Itt day of CJ~Jw, 2000 by and
between Pilot Land Development Company, Inc., referred to herein as "Developer"; and the
CITY OF ALBERTVILLE, CQUIlty of Wright, State ofMinneso~ hereinafter referred to as
"City";
WITNESSETH:
WHEREAS, Developer is the fee owner and developer of a parcel or parcels of land
described in Exhibit A, attached hereto and incorporated herein by reference, which
parcel(s) of land are proposed to be subdivided and platted for development, and which
subdivision, which is the subject of this Agreement, is intended to bear the name "Cedar
Creek North Third Addition" and may sometimes hereinafter be referred to as the "Subject
Property" or "Said Plat"; and
WHEREAS, the City has given preliminary approval of Developer's Development
Stage plan of Cedar Creek North Third Addition contingent upon compliance with certain
City requirements including, but not limited to, matters set forth herein; and
WHEREAS, the City requires that certain public improvements including, but not
limited to, grading, sanitaty sewer, ffiWlicipal water, storm sewer and streets (hereafter
"Municipal Improvements") be installed to serve the Subject Property and, further, to be
financed by Developer;
WHEREAS, the City further requires that certain on- and off-site improvements be
installed by the Developer within the Subject Property, which improvements consist of
boulevards, top soil and sod, grading control per lot, bituminous or concrete driveways,
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parking lot, drainage swales, benning, street signs, street cleanup during project
development, erosion control, and other site-related items; and
WHEREAS, this Agreement is entered into for the purpose of setting forth and
memorializing for the parties and subsequent owners, the Wlderstandings and agreements of
the parties concerning the development of the Subject Property; and
WHEREAS, the City and Developer have previously entered into a Developer's
Agreement titled "City of Albertville Developer's Agreement Cedar Creek Golf Course
Planned Unit Development Concept Plan Master Agreement" ("Master Agreement") under
which the City granted concept plan approval to the plan for the area covered by said Master
Agreement; and
WHEREAS, the City and Developer desire to supplement the Master Agreement
with the site specific details applicable to Cedar Creek North Third Addition, as evidenced
by the execution of this Agreement; and
WHEREAS, the City and Developer desire to have this Agreement and the Master
Agreement read together as if the entire Master Agreement were recited herein;
NOW, THEREFORE, IT IS HEREBY AND HEREIN MUTUALLY
AGREED, in consideration of each party's promises and considerations herein set forth, as
follows:
1. Concept Plan Master Agreement.
A. That certain Developer's Agreement entitled "City of Albertville Developer's
Agreement Cedar Creek Golf Course Planned Unit Development Concept Plan
Master Agreement" ("Master Agreement") between Pilot Land Development
Company, Inc. and the City of Albertville, dated Februaty 27, 1998 is hereby
incorporated herein the same as if the text of said Agreement were contained within
this document.
B. It is the intent of the parties that this Developer's Agreement ("Developer's
Agreement") supplement the Master Agreement as to the specific development
issues related to Cedar Creek North Third Addition, and that these two documents be
read together to determine the rights and obligations of the parties with respect to the
property contained within the Cedar Creek North Third Addition. In the event of a
conflict between the terms of the Master Agreement and this Developer's
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Agreement, the terms of this Developer's Agreement shall control with respect to any
conflicting issues within Cedar Creek North Third Addition, but any such conflicts shall not
alter the terms of the Master Agreement as they apply to other plats, now existing or to be
platted in the future, within the remaining land area subject to the Master Agreement.
2. Construction of Municipal Improvements. The Developer shall construct those Municipal
Improvements located on and off Said Plat as detailed in the Plans and Specifications for Cedar
Creek North Third Addition, as prepared by Meyer-Rohlin, Inc. dated July 28, 2000 as on file
with the City Clerk, said improvements to include installation of water mains, sanitary and
storm sewers, storm water ponding, site grading, curb and gutter, and paved streets. All such
improvements shall be constructed according to the standards adopted by the City, along with
all items required by the City Engineer. Unless the City Engineer specifies a later date, said
improvements shall be installed by October 31 51, 2002 with the wear course of bituminous
pavement to be installed after May 15th, 2003 but before August 31st, 2003.
3. Construction of On- and Off-Site Improvements. Developer shall construct all on- and off-
site improvements including installation of boulevards, street signs, traffic signs, yard top soil,
sod and seed in all yards, grading control per lot, bituminous or concrete driveways and parking
lots, drainage swales, benning, and like items as necessary, street cleanup during project
development, and erosion control, all as required by City ordinance. Front and side yards shall
be sodded. Backyards may be seeded or sodded. In all cases permanent turf or grass must be
established over all areas of the lot not covered by a hard or impervious surface. Said on- and
off-site improvements shall be installed no later than October 31, 2003, with the exception of
erosion control, drainage swales and berming, which shall be installed upon initial grading of
Said Plat.
4. Intended Use of Subdivision Lots, Requirements. It is the Developer's and City's intent that
single-family detached dwelling units be constructed on the lots in Said Plat (one unit on each
lot). Developer agrees that it shall not construct any units other than said single-family detached
dwelling units on the land in Said Plat. Lots located in Said Plat may have varying front yard
setbacks, provided that no front yard setback may be less than thirty (30) feet. The final plat
must show the minimum front yard setbacks and these setbacks must remain in force throughout
the life of the Planned Unit Development.
5. Surety Requirements.
A. Developer will provide the City with an irrevocable letter of credit (or other
surety as approved by the City Attolney) as security that the obligations of the
Developer under this COl1tract shall be performed. Said letter of credit or
surety shall be in the amount of $522,200, representing the sum of 100% of
the estimated cost of the Municipal Improvements ($506,000) and 50% of the
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on and off-site improvements ($16,200). Said letter of credit or surety must
meet the approval of the City attorney as to form and issuing bank. If a bond
is used for up to 25% of the surety amoWlt, said bond shall be in an amount at
least 1.5 times the percentage of the required surety which the bond
represents.
A. The City may draw on said letter of credit or surety to complete work not
performed by Developer (including but not limited to on- and off-site
improvements, Municipal Improvements described above, erosion control,
and other such measures), to pay liens on property to be dedicated to the City,
to reimburse itself for costs incurred in the drafting, execution, administration
or enforcement of this Agreement, to repair or correct deficiencies or other
problems which occur to the Municipal Improvements during the warranty
period, or to otherwise fulfill the obligations of Developef under this
agreement.
B. In the event that any cas~ irrevocable letter of credit, or other surety referred
to herein is ever utilized and fOWld to be deficient in amount to payor
reimburse the City in total as required herein, the Developer agrees that upon
being billed by the City, Developer will pay within thirty (30) days of the
mailing of said billing, the said deficient amoWlt. If there should be an
overage in the amount of utilized security, the City will, upon making said
detennination, refund to the Developer any monies which the City has in its
possession which are in excess of the actual costs of the project as paid by the
City.
c. Developer hereby agrees to allow the City to specially assess Developer's
property for any and all costs incurred by the City in enforcing any of the
terms of this agreement should Developer's letter of credit or surety prove
insufficient or should Developer fail to maintain said letter of credit or surety
in the amoWlt required above within 30 days of mailing of written request by
the City. Should the City assess Developer's property for said costs,
Developer agrees not to contest or appeal such assessment and waives all
statutory rights of appeal under Minnesota Statutes, including Minnesota
Statute 429.081.
D. That portion of said cas~ irrevocable letter of credit or other surety with
respect to the performance of Site Improvements shall be released upon
certification of the City Engineer and approval of the City Council that all
such items are satisfactorily completed pursuant to this Agreement.
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F. In the event a surety referred to herein is in the form of an irrevocable letter of
credit, which by its terms may become null and void prior to the time at
which all monetary or other obligations of the Developer are paid or satisfied,
it is agreed that the Developer shall provide the City with a new letter of
credit or other surety, acceptable to the City, at least forty-five (45) days prior
to the expiration of the original letter of credit. If a new letter of credit is not
received as required above, the City may without notice to Developer declare
a default in the terms of this Agreement and thence draw in part or in total, at
the City's discretion, upon the expiring letter of credit to avoid the loss of
surety for the continued obligation. The form of any irrevocable letter of
credit or other surety must be approved by the City Attorney prior to its
Issuance.
6. Surety Release.
A. Periodically, as payments are made by the Developer for the completion of
portions of the Municipal Improvements and/or On- and Off-site
Improvements, and when it is reasonably prudent, the Developer may request
of the City that the surety be proportionately reduced for that portion of the
Municipal Improvements which have been fully completed and payment
made therefor. All such decisions shall be at the discretion of the City
Council. The City's cost for processing reduction request(s) shall be billed to
the Developer. Such cost shall be paid to the City within thirty (30) days of
the date of mailing of the billing.
B. The Developer may request of the City a reduction or release of any surety as
follows:
1. When another acceptable letter of credit or surety is furnished to the
City to replace a prior letter of credit or surety.
11. When all or a portion of the Municipal Improvements or the on- and
off-site improvements have been installed, the letter of credit or surety
may be reduced by the dollar amount attributable to that portion of
improvements so installed, except that the City shall retain the letter of
credit or surety in the amount of 10% of the estimated construction
price of the MWlicipal Improvements dwing the fIrst year of the
warranty period and 5% of the estimated construction price of the
MWlicipal Improvements dwing the second year of the warranty
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period.
111. As to all requests brought under this paragraph B, the City Council
shall have complete discretion whether to reduce or not to reduce said
letter of credit or surety.
c. The costs incurred by the City in processing any reduction request shall be
billed to the Developer and paid to the City within thirty (30) days of billing.
6. Sanitary Sewer Trunk Line Fees. Developer agrees that the City's Sanitaty Sewer
Trunk Line Fee Ordinance requires the Developer to pay $1,400.00 per acre in sanitaty
sewer trunk line fees. There are 12.67 acres in Said Plat. However, per the agreement
outlined in Parkside 3rd Addition Developer's Agreement, paragraph 2, pages 2-5, the
developer will be credited $900.00 per acre prior to the installation of a sanitary sewer
trunk line. Therefore, the Developer shall be required to pay $6,335.00 ($500.00 x
12.67 acres). Developer will pay said fee prior to the release of the final plat by the City.
7. Erosion and Siltation Control. Before any grading is started on any site, all erosion
control measures as shown on the approved erosion control plan shall be strictly
complied with as set forth in the attached Exhibit B. Developer shall also install all
erosion control measures deemed necessary by the City Engineer should the erosion
control plan prove inadequate in any respect.
8. Ditch Cleaning. Developer shall comply with all requirements set forth for drainage
into any county ditch or other ditch through which water from Subject Property may
drain, and shall make any necessary improvements or go through any necessary
procedures to ensure compliance with any legally enforceable federal, state, county or
city requirements, all at Developer's expense. The City may elect to (but shall not be
required to) refund to the Developer expenses incWTed by Developer for machine
operator time spent cleaning the ditch beyond the bOWldaries of Said Plat.
9. Miscellaneous.
A. This Contract shall run with the land and shall be recorded against the title to the
property (or shall be recorded via a short-form companion document referencing
this Agreement). Upon the Developer's request the City will execute and deliver
to the Developer a release discharging Developer's obligations Wlder this
Agreement, provided the Developer has completed all work and met all
'obligations required under this Contract, and after expiration of the warranty
period.
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B. The Developer represents to the City that Said Plat complies with all City,
county, state and federal laws and regulations, including but not limited to,
subdivision ordinances, zoning ordinances, and environmental regulations. If the
City detennines that the plat does not comply, the City may, at its option, refuse
to allow construction or development work in Said Plat Wltil the Developer so
complies. Upon the City's demand, the Developer shall cease work until there is
compliance.
B. Prior to the execution of this Agreement and prior to the start of any construction
on the Subject Property, Developer shall provide the City with evidence of good
and marketable title to all of Subject Property. Evidence of good and marketable
title shall consist of a Title Insurance Policy or Commitment from a national title
insurance company, or an abstract of title updated by an abstract company
registered under the laws of the State of Minnesota.
C. Developer shall not place any structure at an elevation such that the lowest grade
opening is less than two feet above the highest known surface water level or
ordinary high water level or less than one foot above the 100-year flood level of
any adjacent water body or wetland. If sufficient data on high water levels is not
available, the elevation of the line of permanent aquatic vegetation shall be used
as the estimated high water elevation. When fill is required to meet this
elevation, the fill shall be allowed to stabilize and construction shall not begin
until the property has been approved by the Building Inspector or a professional
soils engineer.
F. The Albertville City Council reserves the right to allocate wastewater treatment
capacity in a manner it fmds to be in the best interests of the public heal~ safety
and welfare.
10. Dedications to the City.
A. The Developer, upon presentation to the City of evidence of good and marketable
title to Subject Property, and upon completion of all construction work and
certification of completion by the City Engineer, shall dedicate all roads, road
right of ways, sewers and water mains to the City. Upon acceptance of
dedication, Developer shall provide to the City "As-Builts" of all sewers, water
mains, and roads. Acceptance by City of any dedication shall occur upon
passage of a resolution to such effect by the City Council.
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C. Developer acknowledges that a total of 1.27 acres of park land (12.67 acres of
land x .10) are needed under the City's current park dedication. The Developer is
not dedicating any park land with this plat. Developer shall meet its park
dedication requirements through the payment of $1,300 per residential lot platted
in this plat, subject to offsets in favor of the Developer for excess park land
dedicated in prior plats and the cost of construction of trails built by Developer at
the City's direction. Developer shall make any payments due to the City under
this paragraph at such time as the City directs.
11. Indemnity. Developer shall hold the City and its officers, employees and agents
harmless from claims made by Developer and Third Parties for damages sustained or
costs incurred resulting from Said Plat approval and development. The Developer shall
indemnify the City and its officers, employees and agents for all costs, damages or
expenses which the City may payor incur in consequence of such claims, including
attorney's fees. Third parties shall have no recourse against the City under this contract.
12. Maintain Public Property Damaged or Cluttered During Construction.
Developer agrees to assume full financial responsibility for any damage which may
occur to public property including but not limited to streets, street sub- base, base,
bituminous sUlface, curb, utility system including but not limited to watermain,
sanitary sewer or storm sewer when said damage occurs as a result of the activity
which takes place during the development of Said Plat. The Developer further
agrees to pay all costs required to repair the streets and/or utility systems damaged or
cluttered with debris when occurring as a direct or indirect result of the construction
that takes place in Said Plat.
Developer agrees to clean the streets on a daily basis. Developer further agrees that
any damage to public property caused by Developer, its agents or employees, will be
repaired immediately if deemed to be an emergency by the City. Developer further
agrees that any damage to public property caused by Developer, its agents or
employees, will be repaired within 14 days if not deemed to be an emergency by the
City.
If Developer fails to so clean the streets or repair or maintain said public property,
the City may undertake making or causing it to be cleaned up, repaired or
maintained. When the City undertakes such activity, the Developer shall reimburse
the City for all of its expenses within thirty (30) days of its billing to the Developer.
If the Developer fails to pay said bill within thirty (30) days, then the City may
specially assess such costs against the lots within Said Plat and/or take necessary
legal action to recover such costs and the Developer agrees that the City shall he
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entitled to attorneys fees incurred by the City as a result of such legal action.
Developer knowingly and vollUltarily waives all rights to appeal said special
assessments under Minnesota Statutes section 429.081.
13. Wastewater Treatment Plant Expansion. The Albertville City Council reserves
the right to allocate wastewater treatment capacity in a manner it finds to be in the
best interests of the public health, safety and welfare. Developer acknowledges and
agrees that the City is clllTently in the process of expanding its wastewater treatment
plant capacity. Developer further acknowledges and agrees that delay in the
availability of wastewater treatment plant capacity may occur for some lots located
within Said Plat and that such delay in capacity availability may also delay the
issuance of building permits for some lots within Said Plat.
14. Assignment of Contract. The obligations of the Developer under this Contract
cannot be assigned without the express written consent of the City Council through
Council resolution.
15. Agreement Effect. This agreement shall be binding upon and extend to the
representatives, heirs, successors and assigns of the parties hereto.
CITY OF ALBERTVILLE,
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. ,
STATE OF MINNESOTA)
) SSe
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this / 7 day of
(J er- , 2000, 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.
~~
STATE OF MINNESOTA )
) SSe
COUNTY OF WRIGHT )
Notary Public
e"': NOt CARol. M. SEVeRSON
" . "" ,,' :~"" MY PUBUC. M'NNt=~
;' '''.' My Commission ExpIres.lan. ~
The foregoing instrument was acknowledged before me this / 7 day of
o eT , 2000, by Linda Goeb, 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)
) SSe
COUNTY OF WRIGHT )
(i),
: '". CAROL M. SEVERSON
.~ , . ,'~ NOTARY PUBUC - MINNESOTA
'!~~.: ~.'- My Commission expires Jan. 31, 2005
d) The foregoing instrument was acknowledged before me this //~# day of
u;J~ , 2000, by Kent Roessler, as President of Pilot Land Development
Company, me. bJ~k
Notary Public
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DRAFTED BY:
Couri & MacArthur Law
Office
P.O. Box 369
705 Central Avenue East
St. Michael, MN 55376
(612)497-1930
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.
. '
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EXHmIT A TO DEVELOPER'S AGREEMENT
The Real Property subject to the Developer's Agreement is legally described as follows
(after the filing of the Cedar Creek North Third Addition Plat):
Lots 1-15, Block 1
Lots 1-12, Block 2
All said property in Cedar Creek North Third Addition, City of Albertville, County
of Wright, Minnesota.
,
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