2006 MN Amended Complaint
STATE OF MINNESOTA
COUNTY OF WRIGHT
DISTRICT COURT
TENTH JUDICIAL DISTRICT
Other Civil- Breach of Contract
City of Albertville, Minnesota,
Court File No. C9-05-2481
Plaintiff
vs.
AMENDED COMPLAINT
Edin~ Development Corporation,
Short, Elliot and Hendrickson, Inc.,
P10we Engineering, Inc., and
E.G. Rud & Sons, Inc.
Defendants.
Plaintiff, for its complaint against Defendant states:
1. Plaintiff, City of Albertville, is and at all times mentioned herein was a
municipal corporation located in Wright County, Minnesota.
2. Defendant, Edina Development Corporation is and at all times mentioned
herein was a corporation organized and existing under the laws of the State
of Minnesota with its principal offices located at 700 Industry Avenue, in
the City of Anoka, in the County of Anoka.
3. Between the time periods of August 9, 2000 through May 30, 2003 at the
City of Albertville, Wright County, State of Minnesota, pursuant to the
authority of Minnesota Statutes Section 462.358, Subd. 2a, Plaintiff and
Defendant Edina Development Corporation ("Edina") entered into seven
1
(7) separate written development contracts setting forth the terms and
conditions for the development of certain parcels of land located in the City
of Albertville as more fully described below.
4. Each of the development contracts upon which this action is based were each
made and were to be performed in the County of Wright, State of Minnesota.
5. Each development contract upon which this action is based provides that the
County of Wright is the proper venue for any action arising out of the
agreements.
6. Each of the development contracts upon which this action is based provides
for an award of the City's reasonable attorneys' fees in any dispute arising out
of the development contracts.
7. The consideration set forth in each of the development contracts was fair
and reasonable.
8. Plaintiff has performed all conditions, covenants, and promises required by
it to be performed in accordance with the terms and conditions of the
various development contracts.
9. Defendant has breached the terms of the various development contracts as
outlined below by failing and refusing to perform in good faith their
promise to pay all of Plaintiff s costs and expenses related to the creation,
administration, enforcement or execution of the various development
2
contracts and related plats, by failing or refusing to perform in good faith
their promise to comply with the performance requirements of the various
agreements, and by failing or refusing to comply with applicable portions
of the Minnesota Wetland Conservation Act.
COUNT I
ALBERTVILLASPLAT
10. Plaintiff realleges and incorporates by reference each and every allegation
contained in paragraphs 1 through 9 above.
11. On or about August 11, 2000, in the City of Albertville, County of Wright,
State of Minnesota, Plaintiff and Defendant entered into a written contract
entitled "City of Albertville Conditional Use/Planned Unit Development
Agreement Albert Villa's", a copy of which is attached hereto as Exhibit
"A" and made a part hereof.
12. Pursuant to Sections 2D and 8 of said development contract, Defendant
agreed to pay all of Plaintiffs costs and expenses related to the creation,
administration, enforcement or execution of the development contract and
related plat. Specifically, Section 8 states as follows:
Developer to Pay City's Costs and Expenses. It is understood
and agreed that the Developer will reimburse the City for all
reasonable administrative, legal, planning, engineering and
other professional costs incurred in the creation, administration,
enforcement or execution of this Agreement and the approval
3
of Said Plan, as well as all reasonable engineering expenses
incurred by the City in designing, approving, installing, and
inspecting said Improvements described above. Developer
agrees to pay all such costs within 30 days of billing by the
City. If Developer fails to pay said amounts, then the City may
specially assess such costs against the lots within Said Plat.
Developer knowingly and voluntarily waives all rights to
appeal said special assessments under Minnesota Statues
Section 429.081. Developer has the right to request time
sheets or work records to verify said billing prior to payment.
13. Pursuant to Section 13H of said "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villa's" (Exhibit A),
Defendant agreed to follow all water, ponding and wetland related
restrictions as required under the terms of the City of Albertville
Conditional Use/Planned Unit Development Agreement Albert Villas
(Exhibit A). Section 13H states as follows:
Developer shall comply with all water, ponding and wetland
related restrictions, if any, required by the City of Albertville
and/or any applicable provisions of State and Federal law.
14. Plaintiff, by certified letter dated June 15, 2004, defaulted Defendant
on the Agreement (Exhibit A) due to Defendant's failure to pay the
reasonable engineering costs which Plaintiff had incurred in the
creation, administration, enforcement and execution of the
development contract and the approval of the development of
Defendant's lands. In this letter, Defendant was reminded that
Plaintiff had previously requested payment of such expenses and that
4
Plaintiff had provided Defendant with a worksheet and detailed
invoices outlining the costs. A true and correct copy of said letter is
attached hereto as Exhibit "B" and incorporated herein by reference.
15. Plaintiff, by letter dated July 29,2004, again notified Defendant that Plaintiff
had not been reimbursed by Defendant for all reasonable engineering costs
incurred in the creation, administration, enforcement or execution of the
development contract and the approval of the development of Defendant's
lands, and that Defendant had failed to pay Plaintiff s costs and expenses
related to the creation, administration, enforcement or execution of the
various development contracts and related plats. A true and correct copy of
said letter is attached hereto as Exhibit "C" and made a part hereof.
16. Plaintiff, by letter dated April 5, 2005, again defaulted Defendant and
provided detailed information relating to the amounts owed by Defendant for
various developments which occurred within the City of Albertville for which
Defendant was obligated to reimburse Plaintiff for its costs and expenses.
Defendant was also provided detailed information regarding Defendant's
failure to comply with wetland mitigation plans and failure . to sign the
wetland maintenance agreement. A true and correct copy of said letter is
attached hereto and made a part hereof as Exhibit "D."
17. Pursuant to Sections 2D and 8 of the "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villa's" (Exhibit A) and
by letter dated April 5, 2005, Exhibit C, Defendant was formally notified
5
by Plaintiff that Plaintiff considered Defendant to be in default of the "City
of Albertville Conditional Use/Planned Unit Development Agreement
Albert Villa's" (Exhibit A).
18. Pursuant to Section 21 of said "City of Albertville Conditional Use/Planned
Unit Development Agreement Albert Villa's," (Exhibit A) Defendant
agreed to pay all of the professional fees incurred by Plaintiff as a result of
Plaintiffs efforts to enforce the terms of the Agreement. Specifically,
Section 21 states as follows:
Professional Fees. The Developer will pay all reasonable
professional fees incurred by the City as a result of City efforts
to enforce the terms of this Agreement. Said fees include
attorney's fees, engineer's fees, planner's fees, and any other
professional fees incurred by the City in attempting to enforce
the terms of this Agreement. The Developer will also pay all
reasonable attorney's and professional fees incurred by the City
in the event an action is brought upon a letter of credit or other
surety furnished by the Developer as provided herein.
19. Defendant requested timesheets and invoices pursuant to Section 8 of the
Agreement. Plaintiff provided Defendant with reasonable documentation
to justify the billings, as requested.
20. On or about July 15, 2004, Defendant breached said "City of Albertville
Conditional Use/Planned Unit Development Agreement Albert Villa's,"
(Exhibit A) by failing to reimburse the Plaintiff for all reasonable
engineering costs incurred in the creation, administration, enforcement or
6
execution of the contract and the approval of the development of
defendant's lands within 30 days of billing by the City. As such, demand
has been made on Defendant for reimbursement of fees expended on
Defendant's behalf but Defendant has failed and refused and continues to
fail and refuse, to repay the sum owed to Plaintiff.
21. By reason of Defendant's breach of said development contract as herein
alleged, the Plaintiff has suffered damages in the sum of $31,455.07 for
costs associated with reasonable professional engineering services, $125.00
for costs associated with the City's reasonable costs for weed removal,
$207.00 for costs associated with the City's reasonable costs for
professional engineering services related to wetland mitigations issues,
$130.50 for costs associated with the City's reasonable costs of
professional planning services related to a sign issues and $140.00 for costs
associated with the City's reasonable cost for professional engineering
services related to lot problems (aerials), all of which are now due, owing,
and unpaid plus interest at the legal rate from and after the date due
according to proof.
22. By reason of the aforementioned breach of the defendant, the Plaintiff has
been forced to secure the services of the legal firm of Couri, MacArthur &
Ruppe, P .L.L.P. to prosecute this lawsuit.
7
COUNT II
ALBERTVILLAS SECOND ADDITION PLAT
23. Plaintiff realleges and incorporates by reference each and every allegation
contained in paragraphs I through 9 above.
24. On or about October 9,2000, in the City of Albertville, County of Wright,
State of Minnesota, Plaintiff and Defendant entered into a written
agreement entitled "City of Albertville Conditional Use/Planned Unit
Development Agreement Albert Villas Second Addition" a copy of which
is attached hereto as Exhibit "E" and made a part hereof. This
development contract incorporated by reference and supplemented the
"City of Albertville Conditional Use/Planned Unit Development
Agreement Albert Villa's" which is attached as Exhibit A.
25. By the terms of Sections 2D and 8 of the "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villa's Second
Addition." (Exhibit E) Defendant agreed to pay all of Plaintiffs Costs and
Expenses related to the creation, administration, enforcement or execution
of the contract and related plat. Specifically, Section II states:
Developer to Pay City's Costs and Expenses. It is understood
and agreed that the Developer will reimburse the City for all
reasonable administrative, legal, planning, engineering and
other professional costs incurred in the creation, administration,
enforcement or execution of this Agreement and the approval
of Said Plan, as well as all reasonable engineering expenses
incurred by the City in designing, approving, installing, and
inspecting said Improvements described above. Developer
8
agrees to pay all such costs within 30 days of billing by the
City. If Developer fails to pay said amounts, then the City may
specially assess such costs against the lots within Said Plat.
Developer knowingly and voluntarily waives all rights to
appeal said special assessments under Minnesota Statues
Section 429.081. Developer has the right to request time
sheets or work records to verify said billing prior to payment.
26. By terms of Section 13H of said "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villa's Second
Addition" (Exhibit E), Defendant agreed to follow all water, ponding and
wetland. related restrictions and to sign the wetland maintenance agreement
as required by the wetland mitigation plan ("Exhibit E"). Section 13H
states as follows:
Developer shall comply with all water, ponding and wetland
related restrictions, if any, required by the City of Albertville
and/or any applicable provisions of State and Federal law.
27. By terms of Section 21 of said "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villa's Second
Addition" (Exhibit E), Defendant agreed to pay all of the professional fees
incurred by Plaintiff. Section 21 states as follows:
Professional Fees. The Developer will pay all reasonable
professional fees incurred by the City as a result of City efforts
to enforce the terms of this Agreement. Said fees include
attorney's fees, engineer's fees, planner's fees, and any other
professional fees incurred by the City in attempting to enforce
the terms of this Agreement. The Developer will also pay all
reasonable attorney's and professional fees incurred by the City
9
in the event an action is brought upon a letter of credit or other
surety furnished by the Developer as provided herein.
28. Plaintiff, by certified letter dated June 15, 2004, defaulted Defendant
on the Agreement (Exhibit E) due to Defendant's failure to pay the
reasonable administrative, legal, planning, engineering and other
professional costs which Plaintiff had incurred in the creation,
administration, enforcement and execution of the development
contract and the approval of the development of Defendant's lands. In
this letter, Defendant was reminded that Plaintiff had previously
requested payment of such expenses and that Plaintiff had provided
Defendant with a worksheet and detailed invoices outlining the costs.
29. Plaintiff, by letter dated July 29, 2004, Exhibit C, notified Defendant that
Plaintiff had not been reimbursed by Defendant for all reasonable engineering
costs incurred in the creation, administration, enforcement or execution of the
development contract and the approval of development of Defendant's lands,
that Defendant had failed to pay Plaintiff s costs and expenses related to the
creation, administration, enforcement or execution of the "City of Albertville
Conditional Use/Planned Unit Development Agreement Albert Villas
Second Addition" Exhibit E, and the approval of the development of
Defendant's lands.
30. Plaintiff, by letter dated April 5,2005, Exhibit D, again defaulted Defendant
and provide detailed information relating to the amounts owed by Defendant
10
for. various developments which occurred within the City of Albertville for
which Defendant was obligated to reimburse Plaintiff for its costs and
expenses. Defendant also provided detailed information regarding Plaintiffs
failure to comply with wetland mitigation plans and failure to sign the
wetland maintenance agreement.
31. Defendant requested timesheets and invoices pursuant to Section 8 of the
Agreement. Plaintiff provided Defendant with reasonable documentation
to justify the billings, as requested.
32. Pursuant to Sections 2D and 8 of the "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villas," (Exhibit A) by
certified letter dated June 15, 2004, Defendant was formally notified by
Plaintiff that Plaintiff considered Defendant to be in default of the various
development contracts.
33. On or about July 15,2004, Defendant breached the said "City of Albertville
Conditional Use/Planned Unit Development Agreement Albert Villas Second
Addition," (Exhibit E) by failing to reimburse the Plaintiff for all reasonable
administrative, legal,. planning, engineering and other professional costs
incurred in the creation, administration, enforcement or execution of the
contract and the approval of the development of defendant's lands within
30 days of billing by the City. As such, demand has been made on
Defendant for reimbursement of fees expended on Defendant's behalf but
11
Defendant has failed and refused and continues to fail and refuse, to repay
the sum owed to Plaintiff.
34. By reason of Defendant's breach of said development contract as herein
alleged, the Plaintiff has suffered damages in the sum of $61,085.16 which
is now due, owing, and unpaid plus interest at the legal rate from and after
the date due according to proof.
35. By reason of the aforementioned breach of the defendant, the Plaintiff has
been forced to secure the services of the legal firm of Couri, MacArthur &
Ruppe, P .L.L.P. to prosecute this lawsuit.
COUNT III
ALBERTVILLAS THIRD ADDITION PLAT
36. Plaintiff realleges and incorporates by reference each and every allegation
contained in paragraphs 1 through 9 above.
37. On or about April 6, 2001, in the City of Albertville, County of Wright,
State of Minnesota, Plaintiff and Defendant entered into a written
agreement entitled "City of Albertville Conditional Use/Planned Unit
Development Agreement Albert Villas Third Addition" a copy of which is
attached hereto as Exhibit "F" and made a part hereof. This development
contract incorporated by reference and supplemented the "City of
12
Albertville Conditional Use/Planned Unit Development Agreement Albert
Villas" which is attached as Exhibit A.
38. By the terms of Sections 2D and 8 of the "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villas Third Addition."
(Exhibit F) Defendant agreed to pay all of Plaintiff s Costs and Expenses
related to the creation, administration, enforcement or execution of the
development contract and related plat. Section 8 states:
Developer to Pay City's Costs and Expenses. It is understood and
agreed that the Developer will reimburse the City for all reasonable
administrative, legal, planning, engineering and other professional
costs incurred in the creation, administration, enforcement or
execution of this Agreement and the approval of Said Plan, as well as
all reasonable engineering expenses incurred by the City in designing,
approving, installing, and inspecting said Improvements described
above. Developer agrees to pay all such costs within 30 days of billing
by the City. If Developer fails to pay said amounts, then the City may
specially assess such costs against the lots within Said Plat. Developer
knowingly and voluntarily waives all rights to appeal said special
assessments under Minnesota Statues Section 429.081. Developer has
the right to request time sheets or work records to verify said billing
prior to payment.
39. By terms of Section 21 of said "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villa's Third Addition"
(Exhibit F), Defendant agreed to pay all of the professional fees incurred by
Plaintiff as a result of Plaintiff s efforts to enforce the terms of the
Agreement. Specifically, Section 21 states as follows:
Professional Fees. The Developer will pay all reasonable professional
fees incurred by the City as a result of City efforts to enforce the terms
of this Agreement. Said fees include attorney's fees, engineer's fees,
13
planner's fees, and any other professional fees incurred by the City in
attempting to enforce the terms of this Agreement. The Developer will
also pay all reasonable attorney's and professional fees incurred by the
City in the event an action is brought upon a letter of credit or other
surety furnished by the Developer as provided herein.
40. By terms of Sections 10 of said "City of Albertville Conditional Use/Planned
Unit Development Agreement Albert Villas Third Addition," (Exhibit F)
Defendant agreed to comply with all requirements set forth in Exhibit F
regarding maintenance of county or any other ditches through which water
from Defendant's Property may drain. Sections 10 states as follows:
Drainage Requirements. 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 federal, state, county or city
requirements, all at Developer's expense.
41. Defendant has failed to clean such portions of County Ditch No.9 which
located on Defendant's property, thereby breaching the Agreement (Exhibit
F) with respect to Section 10 of said Agreement.
42. By terms of Sections 2A and 2B of said "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villas Third Addition,"
(Exhibit F) Defendant agreed to construct municipal improvement on and off
the Defendant's property as detailed in the plans and specifications prepared
by E.G. Rud & Sons, Inc. dated October 20,2000. Sections 2A and 2B states
as follows:
Construction of Municipal Improvements.
14
A. The Developer shall construct those Municipal Improvements
located on and off Said Plat as detailed in the Plans and Specifications
for Albertvillas, as prepared by E.G. Rud & Sons, Inc. dated October
20, 2000 and on file with the City Clerk, said improvements to .include
installation of bituminous street, curb and gutter, water mains, sanitary
and storm sewers, storm water ponding and site grading. 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, 200 I, with the wear course of bituminous
pavement to be installed after May 15,2002, but before June 30,2002.
B. The Developer warrants to the City for a period of two years
from the date the City accepts the finished Municipal Improvements
that all such improvements have been constructed to City standards
and shall suffer no significant impairments, either to the structure or to
the surface or other usable areas due to improper construction, said
warranty to apply both to poor materials and faulty workmanship.
43. Defendant has failed to flatten slopes at outlet ditch of structure south of
Kalie Street and parallel to Kagan Street, failed to install sidewalk and curb
replacement and failed to saw and seal curb and failed to remove fabric
from catch basins in such locations as are on Defendant's Property and has
thereby breached Sections 2A and 2B of said "City of Albertville
Conditional Use/Planned Unit Development Agreement Albert Villas Third
Addition," (Exhibit F).
44. By terms of Section 1 C of said "City of Albertville Conditional Use/Planned
Unit Development Agreement Albert Villas Third Addition," (Exhibit F)
defendant has failed to construct side walks and trails in locations specified in .
Exhibit F and therefore breached said Agreement (Exhibit F). Section 1 C
states as follows:
15
Developer shall, at its own expense, construct sidewalks and trails in
the locations shown in the attached Exhibit B.
45. By terms of Section 11 of said "City of Albertville Conditional Use/Planned
Unit Development Agreement Albert Villas Third Addition," (Exhibit F)
Defendant agreed to comply with all requirements set forth in Exhibit F
regarding damages to and cleaning of county or any other ditches through
which water from Defendant's Property may drain. Section 11 states as
follows:
Maintain Public Property Damaged or Cluttered During Construction.
Developer agrees to assume full fmancial responsibility for any
damage which may occur to public property including but not limited
to streets, street sub- base, base, bituminous surface, 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, utility systems and
other public property 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 if required by
the City. Developer further agrees that any damage to public
property occurring as a result of construction activity on Said Plat
will be repaired immediately if deemed to be an emergency by the
City. Developer further agrees that any damage to public property
as a result of construction activity on Said Plat 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.
16
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 be entitled to attorneys fees
incurred by the City as a result of such legal action. Developer .
knowingly and voluntarily waives all rights to appeal said special
assessments under Minnesota Statutes section 429.081.
46. Defendant has failed to clean and maintain County Ditch No.9 in such
locations as are on Defendant's Property and has thereby breached Section 11
of "City of Albertville Conditional Use/Planned Unit Development
Agreement Albert Villas Third Addition," (Exhibit F).
47. By terms of Section 13H of said "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villa's Third Addition"
(Exhibit F), Defendant agreed to follow all water, ponding and wetland
related restrictions and to sign the wetland maintenance agreement as
required by the wetland mitigation plan. Section 13H states as follows:
Developer shall comply with all water, ponding and wetland
related restrictions, if any, required by the City of Albertville
and/or any applicable provisions of State and Federal law.
48. Defendant has failed to comply with the wetland mitigation plan and failed to
sign the wetland maintenance agreement thereby breaching Section 13H of
"City of Albertville Conditional UseIPlanned Unit Development Agreement
Albert Villas Third Addition," (Exhibit F).
49. Plaintiff, by letter dated April 5, 2005, agam defaulted Defendant and
provided detailed information relating to the amounts owed by Defendant for
17
various developments which occurred within the City of Albertville for which
Defendant was obligated to reimburse Plaintiff for its costs and expenses.
Defendant was also provided detailed information regarding Defendant's
failure to comply with wetland mitigation plans and failure to sign the
wetland maintenance agreement.
50. Plaintiff, by certified letter dated June 15, 2004, defaulted Defendant on the
Agreement (Exhibit A) due to Defendant's failure to pay the reasonable
engineering costs which Plaintiff had incurred in the creation, administration,
enforcement and execution of the development contract and the approval of
the development of Defendant's lands. In this letter, Defendant was reminded
that Plaintiff had previously requested payment of such expenses and that
Plaintiff had provided Defendant with a worksheet and detailed invoices
outlining the costs.
51. Plaintiff, by letter dated July 29, 2004, notified Defendant that Plaintiff had
not been reimbursed by Defendant for all reasonable engineering and
planning costs incurred in the creation, administration, enforcement or
execution of the "City of Albertville Conditional Use/Planned Unit
Development Agreement Albert Villas Third Addition," Exhibit F, and the
approval of the development of Defendant's lands.
52. Defendant requested time sheets and invoices pursuant to Section 8 of the
Agreement. Plaintiff provided Defendant with reasonable documentation
to justify the billings, as requested.
18
53. Pursuant to Sections 2D and 8 of the "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villas," (Exhibit A) by
certified letter dated June 15, 2004, Defendant was formally notified by
Plaintiff that Plaintiff considered Defendant to be in default of the various
development contracts.
54. On or about July 15,2004, Defendant breached the said "City of Albertville
Conditional Use/Planned Unit Development Agreement Albert Villas Third
Addition," (Exhibit F) by failing to reimburse the Plaintiff for all reasonable
engineering and planning costs incurred in the creation, administration,
enforcement or execution of the contract and the approval of the
development of defendant's lands within 30 days of billing by the City. As
such, demand has been made on Defendant for reimbursement of fees
expended on Defendant's behalf but Defendant has failed and refused and
continues to fail and refuse, to repay the sum owed to Plaintiff.
55. Plaintiff, by letter dated April 5, 2005, Exhibit D, provided Defendant with
detailed information relating to breaches Defendant made to the said "City of
Albertville Conditional Use/Planned Unit Development Agreement Albert
Villas Third Addition," (Exhibit F) and as to the amounts owed by Defendant
for various developments which occurred within the City of Albertville for
which Defendant was obligated to reimburse Plaintiff for its costs and
expenses.
19
56. By reason of Defendant's breach of said development contract as herein
alleged, the Plaintiff has suffered damages in the sum of $76,790.63 for
failure to pay the City's reasonable cost for professional engineering
services and $3017.80 for failure to pay the City's reasonable costs for
planning services, both of which are now due, owing, and unpaid plus
interest at the legal rate from and after the date due according to proof.
57. By reason of the aforementioned breach of the defendant, the Plaintiff has
been forced to secure the services of the legal firm of Couri, MacArthur &
Ruppe, P .L.L.P. to prosecute this lawsuit.
COUNT IV
ALBERTVILLAS FOURTH ADDITION PLAT
58. Plaintiff realleges and incorporates by reference each and every allegation
contained in paragraphs 1 through 9 above.
59. On or about April 1 , 2002, in the City of Albertville, County of Wright,
State of Minnesota, Plaintiff and Defendant entered into a written
agreement entitled "City of Albertville Conditional Use/Planned Unit
Development Agreement Albert Villas Fourth Addition" a copy of which is
attached hereto as Exhibit "G" and made a part hereof. This development
contract incorporated by reference and supplemented the "City of
Albertville Conditional Use/Planned Unit Development Agreement Albert
Villas" which is attached as Exhibit A.
20
60. By the terms of Sections 2D and 8 of the "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villas Fourth Addition."
(Exhibit G) Defendant agreed to pay all of Plaintiffs Costs and Expenses
related to the creation, administration, enforcement or execution of the
development contract and related plat. Specifically, Section 8 states:
Developer to Pay City's Costs and Expenses. It is understood
and agreed that the Developer will reimburse the City for all
reasonable administrative, legal, planning, engineering and
other professional costs incurred in the creation, administration,
enforcement or execution of this Agreement and the approval
of Said Plan, as well as all reasonable engineering expenses
incurred by the City in designing, approving, installing, and
inspecting said Improvements described above. Developer
agrees to pay all such costs within 30 days of billing by the
City. If Developer fails to pay said amounts, then the City may
specially assess such costs against the lots within Said Plat.
Developer knowingly and voluntarily waives all rights to
appeal said special assessments under Minnesota Statues
Section 429.081. Developer has the right to request time
sheets or work records to verify said billing prior to payment.
61. Pursuant to Section 21 of said "City of Albertville Conditional Use/Planned
Unit Development Agreement Albert Villa's Fourth Addition", (Exhibit G),
Defendant agreed to pay all of the professional fees incurred by Plaintiff as
a result of Plaintiff s efforts to enforce the terms of the Agreement.
Specifically, Section 21 states as follows:
Professional Fees. The Developer will pay all reasonable
professional fees incurred by the City as a result of City efforts
to enforce the terms of this Agreement. Said fees include
attorney's fees, engineer's fees, planner's fees, and any other
professional fees incurred by the City in attempting to enforce
the terms of this Agreement. The Developer will also pay all
21.
reasonable attorney's and professional fees incurred by the City
in the event an action is brought upon a letter of credit or other
surety furnished by the Developer as provided herein.
62. By terms of Sections 2A and 2B of said "City of Albertville Conditional
Use/Planned unit Development Agreement Albert Villas Fourth Addition,"
(Exhibit G) Defendant agreed to construct municipal improvements on and
off the Defendant's property as detailed in the plans and specifications
prepared by Plowe Engineering dated August 14, 2001. Sections 2A and 2B
state as follows:
Construction of Municipal Improvements.
A. The Developer shall construct those Municipal Improvements
located on and off Said Plat as detailed in the Plans and Specifications
for Albert Villas Fourth Addition, as prepared by Plowe Engineering,
Inc. dated August 14, 2001 and on file with the City Clerk, said
improvements to include installation of bituminous street, curb and
gutter, water mains, sanitary and storm sewers, storm water ponding
and site grading. 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, 2002,
with the wear course of bituminous pavement to be installed after May
15,2003, but before June 30, 2003.
B. The Developer warrants to the City for a period of two years
from the date the City accepts the fmished Municipal Improvements
that all such improvements have been constructed to City standards
and shall suffer no significant impairments, either to the structure or to
the surface or other usable areas due to improper construction, said
warranty to apply both to poor materials and faulty workmanship.
63. Defendant has failed to remove fabric from catch basins, failed to
install band to flared end of apron at County Ditch No.9, failed to
22
clean sediment from drainage ponds and failed to install sidewalk and
curb replacement and to saw and seal curb in such locations as are on
Defendant's Property and has thereby violated Sections 2A and2B of
"City of Albertville Conditional Use/Planned Unit Development
Agreement Albert Villas Fourth Addition dated April 1, 2002"
(Exhibit G).
64. By terms of Section 1D of said "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villas Fourth
Addition" (Exhibit G) Defendant agreed to'install sidewalks and curbs
on Defendant's property. Section ID states as follows:
Developer shall, at its own expense, construct sidewalks in the
locations shown in the attached Exhibit D at the time of road
construction.
65. Defendant has failed to install sidewalk and curb replacement and
failed to saw and seal curb in such locations as are on Defendant's
Property and has thereby violated Sections ID of "City of Albertville
Conditional Use/Planned Unit Development Agreement Albert Villas
Fourth Addition dated April 1, 2002" (Exhibit G).
66. By terms of Section 3F of said "City of Albertville Conditional
Use/P1anned Unit Development Agreement Albert Villas Fourth
Addition," (Exhibit G) Defendant agreed to install storm water
retention/water quality ponds and basins on Defendant's property.
Section 3F states as follows:
23
Developer shall install storm water retention/water quality
ponds and basins upon Said Plat as shown on the Grading,
Drainage and Erosion Control Plan attached as Exhibit F. Said
ponds and basins shall be dedicated to the City, and Developer
shall provide the City with perpetual drainage easements over
such ponds. Said retention ponds and basins shall be installed
prior to the installation of utilities.
67. Defendant has failed to clean sediment from drainage ponds in such
locations as are on Defendant's Property and has thereby violated
Sections 3F "City of Albertville Conditional Use/Planned Unit
Development Agreement Albert Villas Fourth Addition dated April 1,
2002 (Exhibit G).
68. By terms of Sections 10 and 11 of said "City of Albertville Conditional
Use/Planned unit Development Agreement Albert Villas Fourth Addition,"
(Exhibit G) Defendant agreed to comply with all requirements set forth in
Exhibit F regarding damages to and cleaning of county or any other ditches
through which water from Defendant's Property may drain. Sections 10 and
11 states as follows:
10. Drainage Requirements. 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 federal, state, county or city requirements, all at
Developer's expense.
11. Maintain Public Property Damaged or Cluttered During
Construction.
24
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 surface, 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, utility systems and
other public property 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 if required by
the City. Developer further agrees that any damage to public
property occurring as a result of construction activity on Said Plat
will be repaired immediately if deemed to be an emergency by the
City. Developer further agrees that any damage to public property
as a result of construction activity on Said Plat 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 be entitled to attorneys fees incurred by the City as a
result of such legal action. Developer knowingly and voluntarily
waives all rights to appeal said special assessments under Minnesota
Statutes section 429.081.
69. Defendant has failed to remove construction debris and washout material in
County Ditch No.9 at 49th Street in such locations as are on Defendant's
Property and has thereby violated Sections 10 and 11 of "City of Albertville
Conditional Use/Planned Unit Development Agreement Albert Villas Fourth
Addition dated April 1, 2002" (Exhibit G).
25
70. By terms of Section 13H of said "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villa's Fourth Addition"
I
I
(Exhibit G), Defendant agreed to follpw all water, ponding and wetland
I
related restrictions and to sign the {vetland maintenance agreement as
I
i
required by the wetland mitigation pia, ("Exhibit G"). Section 13H states
I
I
as follows: I
I
I
I
I
Developer shall comply with a~l water, ponding and wetland related
restrictions, if any, required by e City of Albertville, Wright County
Soil and Water District and/or y applicable provisions of State and
Federal law. I
I
i
71. Defendant has failed to sign the wet1an~ maintenance agreement and
i
failed to comply with the wetland mitigation plan as required by
I .
Sections 13H of "City of Albertville qonditional Use/Planned Unit
I
I
Development Agreement Albert Villas ~ourth Addition dated April 1,
I
2002 (Exhibit G), thereby violating said ~greement.
i
I
I
72. Defendant requested time sheets and inyoices pursuant to Section 8
!
I
of the Agreement. Plaintiff provided I Defendant with reasonable
I
I
documentation to justify the billings, as requested.
I
73. Plaintiff, by certified letter dated June 1~, 2004, defaulted Defendant
I
on the Agreement (Exhibit A) due to qefendant's failure to pay the
I
reasonable engineering costs which P~aintiff had incurred in the
creation, administration, enforcement and execution of the
26
development contract and the approval of the development of
Defendant's lands. In this letter, Defendant was reminded that
Plaintiff had previously requested payment of such expenses and that
Plaintiff had provided Defendant with a worksheet and detailed
invoices outlining the costs.
74. On or about July 15, 2004, Defendant breached the said "City of
Albertville Conditional Use/Planned Unit Development Agreement
Albert Villas Fourth Addition" (Exhibit G), by failing to reimburse
the Plaintiff for all reasonable engineering costs incurred in the
creation, administration, enforcement or execution of the contract
and the approval of the development of defendant's lands within 30
days of billing by the City. As such, demand has been made on
Defendant for reimbursement of fees expended on Defendant's
behalf but Defendant has failed and refused and continues to fail and
refuse, to repay the sum owed to Plaintiff.
75. Pursuant to Sections 2D and 8 of the "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villas Fourth Addition",
(Exhibit G), Defendant was again notified by Plaintiff by certified letter
dated July 29,2004 that Plaintiff considered Defendant to be in default of
the various development contracts.
76. Plaintiff, by letter dated April 5, 2005, Exhibit D, provided Defendant with
detailed information relating to the amounts owed by Defendant for various
27
developments which occurred within the City of Albertville for which
Defendant was obligated to reimburse Plaintiff for its costs and expenses.
77. By reason of Defendant's breach of said "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villas Fourth Addition",
(Exhibit G), development contract as herein alleged, the Plaintiff has
suffered damages in the sum of $94,165.69 which is now due, owing, and
unpaid plus interest at the legal rate from and after the date due according
to proof.
78. By reason of the aforementioned breach of the defendant, the Plaintiff has
been forced to secure the services of the legal fIrm of Couri, MacArthur &
Ruppe, P .L.L.P. to prosecute this lawsuit.
COUNT V
ALBERTVILLAS SIXTH ADDITION PLAT
79. Plaintiff realleges and incorporates by reference each and every allegation
contained in paragraphs 1 through 9 above.
80. On or about May 30,2003, in the City of Albertville, County of Wright,
State of Minnesota, Plaintiff and Defendant entered into a written
agreement entitled "City of Albertville Conditional Use/Planned Unit
Development Agreement Albert Villas Sixth Addition" a copy of which is
attached hereto as Exhibit "H" and made a part hereof. This development
contract incorporated by reference and supplemented the "City of
28
Albertville Conditional Use/Planned Unit Development Agreement Albert
Villas" which is attached as Exhibit A.
81. By the terms of Sections 2D and 8 of the "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villas Sixth Addition."
(Exhibit H) Defendant agreed to pay all of Plaintiff s Costs and Expenses
related to the creation, administration, enforcement or execution of the
development contract and related plat. Specifically, Section 8 states as
follows:
Developer to Pay City's Costs and Expenses. It is understood and
agreed that the Developer will reimburse the City for all reasonable
administrative, legal, planning, engineering and other professional
costs incurred in the creation, administration, enforcement or
execution of this Agreement and the approval of Said Plan, as well as
all reasonable engineering expenses incurred by the City in designing,
approving, installing, and inspecting said Improvements described
above. Developer agrees to pay all such costs within 30 days of billing
by the City. .IfDeveloper fails to pay said amounts, then the City may
specially assess such costs against the lots within Said Plat. Developer
knowingly and voluntarily waives all rights to appeal said special
assessments under Minnesota Statues Section 429.081. Developer has
the right to request time sheets or work records to verify said billing
prior to payment.
82. Pursuant to Section 21 of said "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villa's Sixth Addition"
(Exhibit H), Defendant agreed to pay all of the professional fees incurred
by Plaintiff as a result of Plaintiff s efforts to enforce the terms of the
Agreement. Specifically, Section 21 states as follows:
29
Professional Fees. The Developer will pay all reasonable
professional fees incurred by the City as a result of City efforts
to enforce the terms of this Agreement. Said fees include
attorney's fees, engineer's fees, planner's fees, and any other
professional fees incurred by the City in attempting to enforce
the terms of this Agreement. The Developer will also pay all
reasonable attorney's and professional fees incurred by the City
in the event an action is brought upon a letter of credit or other
surety furnished by the Developer as provided herein.
83. By terms of Sections lA, 1C, 2A, and 2C of said "City of Albertville
Conditional Use/Planned Unit Development Agreement Albert Villas Sixth
Addition," (Exhibit H) Defendant agreed to construct and maintain the storm
sewer system on Defendant's property as detailed in the plans and
specifications prepared by Plowe Engineering dated August 14,2001 (Exhibit
H). Sections lA, 1 C, 2A and 2C state as follows:
1 A. All grading, drainage, utility, wetland mitigation, and
transportation issues that arise during development of Said Plat
shall be subject to review and approval by the City Engineer.
1 C. Developer shall at its own expense, construct sidewalks
in the locations shown in the attached Exhibit C, C-1, and C-2
at the time of road construction.
2 A. The Developer shall construct those Municipal
Improvements located on and off Said Plat as detailed in the
Plans and Specifications for Albert Villas Fourth Addition, as
prepared by Plowe Engineering, Inc. dated August 14, 2001
and on file with the City Clerk, said improvements to include
installation of bituminous street, curb and gutter, water mains,
sanitary and storm sewers, storm water ponding and site
grading. 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, 2002, with the wear course of bituminous
30
pavement to be installed after May 15, 2003, but before June
30,2003.
2 C. The Developer warrants to the City for a period of two
years from the date the City accepts the finished Municipal
Improvements that all such improvements have been
constructed to City standards and shall suffer no significant
impairments, either to the structure or to the surface or other
usable areas due to improper construction, said warranty to
apply both to poor materials and faulty workmanship.
31
84. Defendant has failed to clean the storm water sewer in such locations
as are on Defendant's Property and has thereby violated Sections lA,
2A, and 2C of "City of Albertville Conditional Use/Planned Unit
Development Agreement Albert Villas Sixth Addition dated May 30,
2003 (Exhibit H).
85. By terms of Sections 2C, 10, 11 of said "City of Albertville
Conditional Use/Planned unit Development Agreement Albert Villas
Sixth Addition," (Exhibit H) Defendant agreed to comply with all
requirements set forth in Exhibit H regarding damages to and cleaning
of county or any other ditches through which water from Defendant's
Property may drain and to remove structures over said county ditches.
Section 2C reads as stated herein and Sections 10 and 11 state as
follows:
10. Drainage Requirements. 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 federal, state, county or city requirements, all at
Developer's expense.
11. Maintain Public Property Damaged or Cluttered During
Construction.
Developer agrees to assume full fmancial responsibility for any
damage which may occur to public property including but not limited
to streets, street sub- base, base, bituminous surface, 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, utility systems and
other public property 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 if required by
the City. Developer further agrees that any damage to public
property occurring as a result of construction activity on Said Plat
will be repaired immediately if deemed to be an emergency by the
City. Developer further agrees that any damage to public property
as a result of construction activity on Said Plat 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
be entitled to attorneys fees incurred by the City as a result of
such legal action. Developer knowingly and voluntarily waives
all rights to appeal said special assessments under Minnesota
Statutes section 429.081.
86. Defendant has failed to repair the top section on the gate valve box at
hydrant located at Lot 25, Block 7, failed to re-grade the storm water
32
pond to stabilize slopes in vicinity of storm sewer outlets, failed to
restore major washouts at entrance culverts, failed to remove the fabric
from catch basins, failed to clean County Ditch No.9 and failed to
remove the concrete bridge structure of Count Ditch No.9 near Albert
Villas Park in such locations as are on Defendant's Property and has
thereby violated Sections 2C, 10 and 11 of "City of Albertville
Conditional Use/Planned Unit Development Agreement Albert Villas
Sixth Addition dated May 30, 2003 (Exhibit H).
87. By terms of Section 3A of said "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villa's Sixth Addition"
(Exhibit H), Defendant agreed to construct all on and off site
improvements, including but not limited, construction of turf for areas
disturbed by installation of drain tile lines. Section 3A reads as follows:
Developer shall construct all on- and off-site improvements including
installation of paved streets, curb and gutter, 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, berming, and like items as necessary, street cleanup during
project development, and erosion control, all as required by City
ordinance. Front, side and portions of the back yards of residential lots
shall be sodded in accordance with the Residential Development
Standards as on file with the City Administrator's Office. Those
portions of the yards not required to be sodded may be seeded with
grass seed 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. The Developer shall guarantee that all new
p1antings shall survive for two full years from the time the planting has
been completed or will be replaced at the expense of the Developer.
33
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.
88. Defendant has failed to restore turf for areas disturbed by installation of drain
tile lines in such locations as are on Defendant's Property and has thereby
violated Sections 3A of "City of Albertville Conditional Use/Planned Unit
Development Agreement Albert Villas Sixth Addition dated May 30, 2003
(Exhibit H).
89. By terms of Section 1 C of said "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villa's Sixth Addition"
(Exhibit H), Defendant agreed to construct sidewalks, including but not
limited to a bituminous trail. Section lC states as follows:
Developer shall, at its own expense, construct sidewalks in the
attached Exhibit C, C-I and C-2 at the time of road construction..
90. Defendant has failed to complete construction of bituminous trail in such
locations as are on Defendant's Property and has thereby violated Sections
1D of "City of Albertville Conditional Use/Planned Unit Development
Agreement Albert Villas Sixth Addition dated May 30, 2003 (Exhibit H).
91. By terms of Section 13H of said "City of Albertville Conditional
Use/Planned Unit Development Agreement Albert Villa's Sixth Addition"
(Exhibit H), Defendant agreed to follow all water, ponding and wetland
34
related restrictions, to sign the wetland maintenance agreement as required
by the wetland mitigation plan. Section 13H states as follows:
Developer shall comply with all water, ponding and wetland
related restrictions, if any, required by the City of Albertville,
Wright County Soil and Water District and/or any applicable
provisions of State and Federal law.
92. Defendant has failed to comply with the wetland mitigation plan and
failed to sign the wetland maintenance agreement as required by
Section 13H of "City of Albertville Conditional Use/Planned Unit
Development Agreement Albert Villas Sixth Addition dated May 30,
2003 (Exhibit H) and has thereby violated Said Agreement.
93. Defendant requested timesheets and invoices pursuant to Section 8
of the Agreement. Plaintiff provided Defendant with reasonable
documentation to justify the billings, as requested.
94. Plaintiff, by certified letter dated June 15, 2004, defaulted Defendant
on the Agreement (Exhibit H) due to Defendant's failure to pay the
reasonable administrative, legal, planning, engineering and other
professional costs which Plaintiff had incurred in the creation,
administration, enforcement and execution of the development
contract and the approval of the development of Defendant's lands. In
this letter, Defendant was reminded that Plaintiff had previously
requested payment of such expenses and that Plaintiff had provided
Defendant with a worksheet and detailed invoices outlining the costs.
35
A true and correct copy of said letter is attached hereto as Exhibit "B"
and incorporated herein by reference.
95. On or about July 15, 2004, Defendant breached said "City of
Albertville Conditional Use/Planned Unit Development Agreement
Albert Villa's," (Exhibit H) by failing to reimburse the Plaintiff for
all reasonable administrative, legal, planning, engineering and other
professional costs incurred in the creation, administration,
enforcement or execution of the contract and the approval of the
development of defendant's lands within 30 days of billing by the
City. As such, demand has been made on Defendant for
reimbursement of fees expended on Defendant's behalf but
Defendant has failed and refused and continues to fail and refuse, to
repay the sum owed to Plaintiff.
96. Plaintiff, by letter dated July 29, 2004, notified Defendant that Plaintiff had
not been reimbursed by Defendant for all reasonable administrative, legal,
planning, engineering and other professional costs incurred in the creation,
administration, enforcement or execution of the "City of Albertville
Conditional Use/Planned Unit Development Agreement Albert Villas Sixth
Addition" Exhibit H, and the approval of the development of Defendant's
lands. A true and correct copy of said letter is attached hereto as Exhibit "c"
and made a part hereof.
36
97. Plaintiff, by letter dated April 5, 2005, Exhibit "D", provided Defendant with
detailed information relating to the amounts owed by Defendant for various
developments which occurred within the City of Albertville for which
Defendant was obligated to reimburse Plaintiff for its costs and expenses.
98. Pursuant to Sections 2D and 8 of the "City of Albertville Conditional
Use/Planned Unit Development Agreement Sixth Addition Albert Villas"
(Exhibit H), by certified letter dated July 29,2004, Defendant was formally
notified by Plaintiff that Plaintiff considered. Defendant to be in default of
the various development contracts.
99. By reason of Defendant's breach of said "City of Albertville Developer
UseIPlanned Unit Development Sixth Addition", (Exhibit H), development
contract as herein alleged, the Plaintiff has suffered damages in the sum of
$13,488.49 for failure to pay the City's reasonable costs for professional
engineering services and $1,082.50 for failure to pay the City's reasonable costs
for professional legal services, both of which are now due, owing, and unpaid plus
interest at the legal rate from and after the date due according to proof.
100. By reason of the aforementioned breach of the defendant, the Plaintiff has
been forced to secure the services of the legal firm of Couri, MacArthur &
Ruppe, P .L.L.P. to prosecute this lawsuit.
37
COUNT VI
ZONING REQUEST APPLICATION
101. Plaintiff realleges and incorporates by reference each and every allegation
contained in paragraphs 1 through 9 above.
102. On or about May 22,2001, in the City of Albertville, County of Wright,
State of Minnesota, Plaintiff and Defendant entered into a written
agreement entitled "City of Albertville Zoning Request Application" a copy
of which is attached hereto as Exhibit "I" and made a part hereof.
103. By the terms of the "City of Albertville Zoning Request Application"
(Exhibit H) Defendant agreed to pay all of Plaintiff s Costs and Expenses
related to the creation, administration, enforcement or execution of the
development contract and related plat. Specifically, Exhibit H states as
follows:
I understand that all City incurred professional fees and expenses
associated with the processing of this request are the responsibility of
the property owner and/or application and should be promptly paid. If
payment is not received from the applicant, the property owner
acknowledges and agrees to be responsible for the unpaid fee balance
either by direct payment or a special assessment against the property.
104. Plaintiff, by letter dated April 5, 2005, Exhibit D, provided Defendant with
detailed information relating to the amounts owed by Defendant for various
developments which occurred within the City of Albertville for which
Defendant was obligated to reimburse Plaintiff for its costs and expenses.
38
105. By reason of Defendant's breach of said "City of Albertville Zoning
Request Application" (Exhibit I), development contract as herein alleged,
the Plaintiff has suffered damages in the sum of $567.10 for failure to pay
professional engineering services related to the development and $330.00
for failure to pay reasonable costs for professional legal services related to
the development, both of which are now due, owing, and unpaid plus
interest at the legal rate from and after the date due according to proof.
106. By reason of the aforementioned breach of the defendant, the Plaintiff has
been forced to secure the services of the legal firm of Couri, MacArthur &
Ruppe, P .L.L.P. to prosecute this lawsuit.
COUNT VII
EDINA DEVELOPMENT STORM WATER BREACH OF CONTRACT
107. Plaintiffrealleges and incorporates by reference each and every allegation
contained in paragraphs 1 through 8 above.
108. Chapters A-500, A-600, A-700 and A-800 of the Albertville Subdivision
Ordinance in effect at the time of Defendant Edina's application for plat
approval required Defendant Edina to submit a design for streets, curb,
gutter, storm sewer, and storm water ponding that met the City's ordinance
requirements, which, among other things, requires such storm sewer and
storm water ponding system to be able to contain a 100-year storm event
without discharging at more than one-half of the pre-development peak
39
storm water discharge rates. Chapters A - 700 and A -800 of the Albertville
Subdivision Ordinance in effect at the time of Defendant Edina's
application for plat approval required Defendant Edina to construct all such
streets, curb, gutter, storm sewer and storm water ponding consistent with
Edina's design submitted to the City and required storm water facilities to
be installed which discharged at no more than one-half of the pre-
development peak storm water discharge rates.
109. Edina submitted such engineering designs for Albert Villas plat, Albert
Villas Second Addition, Albert Villas Third Addition, Albert Villas Fourth
Addition, and Albert Villas Sixth Addition (collectively, "Albert Villas
Plats") as part of the approval process for each plat. All such plats are
located west of CSAH 19 and drain into County Ditch 9.
110. Each of the Development Agreements attached to this Complaint as
Exhibits A, E, F, G and H required the Defendant Edina to construct such
streets, curb, gutter, storm sewer and storm water ponding.
111. In paragraph 13.F of each of the Development Agreements attached as
Exhibits A, E, F, G and H, Defendant Edina represented as follows:
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. Developer agrees to obtain all required
federal, state and local permits....
112. On April 17, 2006, the Albertville City Council was informed for the fIrst
time that the storm sewer and storm water ponding systems installed in the
40
Albert Villas Plats were designed in a manner that did not meet the City's
requirements in that these systems could not contain a 100- year storm event
without discharging at more than one-half of the pre-development peak
storm water discharge rates. Because of these design deficiencies, the City
has experienced flooding of streets, yards and homes during storm events
which are less severe than a IOO-year storm event. Among the deficiencies
identified which contribute to the flooding were the following:
A. Edina's design identified 102 acres of property that drained through
the Albert Villas Plats. That design failed to properly identify and
provide for approximately 535 additional acres that drained through
said plats.
B. Edina's design calculated the storm water storage capacity of Outlot
A, Albert Villas Third Addition as 42.6 acre feet of water. The City
believes that the actual storm water storage capacity of said Outlot A is
13.5 acre feet of water and that the difference in storage capacity is due
in part to either an inadequate design of the storm water system or the
erroneous measurement of the elevation of the wetland contained
within said Outlot A.
C. Edina's design assumed that the during and immediately after a 100-
year storm event the storm water ponds constructed onthe Albert
Villas Plats would discharge via pipes into County Ditch No.9 at a
faster rate than they actually discharge.
41
113. Defendant Edina's inadequate design has resulted in flooding of streets and
yards in certain areas of the Albert Villas plats during and after a 100-year
storm event.
114. Defendant Edina's failure to design and construct storm sewer and storm
water ponding systems in the Albert Villas Plats which comply with the
City's subdivision ordinances relating to storm water discharge constitutes a
breach of City of Chapters A-600 and A-800 of the Albertville Subdivision
Ordinances, and as such, constitutes a default under the following
Developer's Agreements:
A. Albert Villas (Exhibit A), Paragraph 13.F.
B. Albert Villas Second Addition (Exhibit E), Paragraph 13.F.
C. Albert Villas Third Addition (Exhibit F), Paragraph 13.F.
D. Albert Villas Fourth Addition (Exhibit G), Paragraph 13.F.
E. Albert Villas Sixth Addition (Exhibit H), Paragraph 13.F.
115. The City has been damaged in an amount in excess of $50,000.00 due to
Defendant Edina's breach of contract relating to the design and installation of
storm sewers and storm water ponding which does not comply with the City's
subdivision ordinances.
COUNT VIII
PLOWE ENGINEERING BREACH OF CONTRACT
42
116. Defendant, Plowe Engineering, Inc. is and at all times mentioned herein was
a corporation organized and existing under the laws of the State of
Minnesota with its principal offices located at 9180 Lexington A venue
North, Circle Pines, Minnesota.
117. Plaintiff realleges and incorporates by reference each and every allegation
contained in paragraphs 107 through 113 above.
118. Plaintiff alleges, based upon information and belief, that Defendant Edina
contracted with Plowe Engineering, Inc. ("PI owe") to have Plowe design
storm sewers and storm water ponds which would allow the Albert Villas
Plats to contain a 100-year storm event without discharging at more than
one-half of the pre-development peak storm water discharge rates. PI owe
had specific knowledge that such storm sewers and storm water ponds
would be dedicated to the City and would become the property of the City.
119. The City is a third party beneficiary of the contract between PI owe and
Defendant Edina in that the City was an intended beneficiary to Plowe's
proper design of the storm sewers and storm water ponds.
120. Plowe breached its contractual obligation to the City by failing to properly
design the storm sewers and storm water ponds.
121. The City has been damaged in an amount in excess of $50,000.00 due to
Defendant Plowe's breach of contract relating to the design of storm sewers
and storm water ponding which does not comply with the City's subdivision
ordinances.
43
COUNT IX
PLOWE ENGINEERING NEGLIGENCE
122. Plaintiffrealleges and incorporates by reference each and every allegation
contained in paragraphs 107 through 113 above.
123. Plaintiff alleges, based upon information and belief, that Defendant Edina
contracted with Plowe to have PI owe design storm sewers and storm water
ponds which would allow the Albert Villas Plats to contain a IOO-year
storm event without discharging at more than one-half of the pre-
development peak storm water discharge rates.
124. Plowe had specific knowledge that such storm sewers and storm water
ponds would be dedicated to the City and would become the property of the
City. Because Plowe had prior knowledge that the storm sewers and storm
water ponds would be dedicated to the City, Plowe owed the City a duty to
properly design the storm sewers and storm water ponds to contain a 100-
year storm event without discharging at more than one-half of the pre-
development peak storm water discharge rates.
125. Plowe was negligent in its design of the storm sewers and storm water ponds
in that Plowe failed to properly design the storm sewer and storm water ponds
. to contain a IOO-year storm event without discharging at more than one-
half of the pre-development peak storm water discharge rates as required by
44
City ordinance. Plowe's negligence is the proximate cause ofthe City's
damages as alleged herein.
126. The City has been damaged in an amount in excess of $50,000.00 due to
Defendant Plowe's negligence in the design of the storm sewers and storm
water pondingwhich does not comply with the City's subdivision ordinances.
Plowe's negligence is the proximate cause of the City's damages as alleged
herein.
COUNT X
E.G. RUD & SONS, INC. BREACH OF CONTRACT
127. Defendant, E.G. Rud & Sons, Inc. is and at all times mentioned herein was a
corporation organized and existing under the laws of the State of Minnesota
with its principal offices located at 6776 Lake Drive N.E., Suite 110, Lino
Lakes, Minnesota, and with such offices formerly located at 9180
Lexington Avenue North, Circle Pines, Minnesota. .
128. Plaintiffrealleges and incorporates by reference each and every allegation
contained in paragraphs 107 through 113 above.
129. Plaintiff alleges, based upon information and belief, that Defendant Edina
contracted with E.G. Rud & Sons, Inc. ("Rud") to have Rud survey and
provide various elevations in the Albert Villas Plats, including the elevation .
of the wetland contained within Outlot A of Albert Villas Third Addition.
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130. Rud had specific knowledge that such wetland elevations would be used in
designing a storm water system that would be dedicated to the City and
would become the property of the City.
131. The City is a third party beneficiary of the contract between Rud and
Defendant Edina in that the City was an intended beneficiary to the proper
design of the storm sewers and storm water ponds for which Rud was
supplying wetland elevation data.
132. Rud breached its contractual obligation to the City by failing to properly
measure the elevation of the wetland contained within Outlot A of Albert
Villas Third Addition.
133. The City has been damaged in an amount in excess of $50,000.00 due to
Defendant Rud's breach of contract relating to the proper measurement of the
elevation of the wetland contained in Outlot A of Albert Villas Third
Addition.
COUNT XI
E.G. RUD & SONS, INC. NEGLIGENCE
134. Plaintiffrealleges and incorporates by reference each and every allegation
contained in paragraphs 107 through 113 and paragraph 129 above.
135. Rud had specific knowledge that such wetland elevations would be used in
designing a storm water system that would be dedicated to the City and
would become the property of the City. Because Rud had prior knowledge
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that the storm sewers and storm water ponds would be dedicated to the
City, Rud owed the City a duty to properly measure the elevation of the
wetland complex in Outlot A of Albert Villas Third Addition so that the
storm sewers and storm water ponds could be properly designed to contain
a 100-year storm event without discharging at more than one-half of the
pre-development peak storm water discharge rates.
136. Rud was negligent in calculating the incorrect elevation of the wetland
complex contained within Outlot A of Albert Villas Third Addition, which
resulted in less available storm water storage in the storm water system for the
Albert Villas Plats. Rud's negligence is the proximate cause of the City's
damages as alleged herein.
137. The City has been damaged in an amount in excess of $50,000.00 due to
Defendant Rud's negligence in calculating the incorrect elevation of the
wetland complex contained within Outlot A of Albert Villas Third Addition.
Rud's negligence is the proximate cause of the City's damages as alleged
herein.
COUNT XII
SEH BREACH OF CONTRACT
138. Defendant, Short, Elliot & Hendrickson, Inc. ("SEH")is and at all times
mentioned herein was a corporation organized and existing under the laws
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of the State of Minnesota with its offices located at Butler Square Building,
Suite 710C, 100 North Sixth Street, Minneapolis, Minnesota.
139. Plaintiffrealleges and incorporates by reference each and every allegation
contained in paragraphs 107 through 113 and paragraph 117 above.
140. Since approximately July 18, 1994, the City of Albertville has contracted with
SEH to provide engineering services to the City. These services included
"review" services for all preliminary and fmal plat submissions, under which
SEH was to review the engineering submittals and make a determination and
advise the Albertville City Council whether the street, storm sewer, storm
water ponding, sanitary sewer, and municipal water designs submitted by the
property owner or developer met the requirements of the City's zoning and
subdivision ordinances.
141. With respect to Albert Villas Plats, SEH improperly determined that the storm
sewers and storm water ponds were properly engineered to contain a 100-
year storm event without discharging at more than one-half of the pre-
development peak storm water discharge rates.
142. SEH breached the terms ofits contract by not advising the City that the storm
sewers and storm water ponds within the Albert Villas Plats were not properly
engineered to contain a 100- year storm event without discharging at more
than one-half of the pre-development peak storm water discharge rates.
143. The City has been damaged in an amount in excess of $50,000.00 due to
Defendant SEH's breach of contract identified in paragraph 142 above.
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COUNT XIII
SEH NEGLIGENCE
144. Plaintiffrealleges and incorporates by reference each and every allegation
contained in paragraphs 107 through 113, paragraph 117 and paragraph 137
above.
145. As a result of SEH's relationship with the City, SEH owed the City a duty
to properly evaluate the design of the Albert Villas Plats to determine if the
storm sewers and storm water ponds were properly engineered to contain a
IOO-year storm event without discharging at more than one-half of the pre-
development peak storm water discharge rates.
146. SEH breached this duty by failing to properly evaluate the design of the
Albert Villas Plats regarding their ability to contain a 100- year storm event
without discharging at more than one-half of the pre-development peak
storm water discharge rates and by failing to properly advise the Albertville
City Council that such designs did not meet the City's Subdivision
Ordinances. SEH's negligence is the proximate cause of the City's damages
as alleged herein.
147. The City has been damaged in an amount in excess of $50,000.00 due to
Defendant SEH's negligence in evaluating the design of the storm sewers and
storm water ponding in the Albert Villa's Plats.
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COUNT XIV
EDINA STOCKPILING OF DIRT
148. During the development of the Albert Villas Plats, Edina caused dirt, fill and
other soil materials in excess of 50 cubic yards to be moved from the Albert
Villas Plats to an unplatted property located north of Albert Villas 6th
Addition and located as shown on the attached Exhibit J ("Unplatted
Property").
149. City Zoning Ordinance Section 1900.1 states in part:
Permit Required. The extraction of sand, gravel, black dirt or other
natural material from the land or the grading ofland by a person in the
amount of fifty (50) cubic yards or more shall be termed land
excavation/grading and shall require a permit.
150. Edina has never obtained a permit to stockpile and grade the dirt, fill and
other soil materials on the Unplatted Property.
151. Edina's stockpiling and grading of dirt, fill and other soil materials in excess
of 50 cubic yards without a permit as required by Section 1900.1 of the City's
Zoning Ordinance constitutes a violation of Section 1900.1.
PRAYER
WHEREFORE, Plaintiff prays for relief by this Court as follows:
1. Judgment awarding joint and several damages in an amount in excess
of $50,000 against Edina, Plowe, Rud and SEH;
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Dated:
2. Judgment against all Defendants awarding Plaintiff its costs,
reasonable attorney's fees, disbursements and expenses arising from
the litigation of this action;
3. An order requiring Defendant Edina to fully comply with all
contractual obligation as identified in this Complaint;
4. An order requiring Defendant Edina to obtain a permit for and
properly dispose of the excess soil stockpiled on the Unplatted
Property; and
5.
Such other and further relief as this Court deems just and proper.
,2006
Michael C. Couri, Attorney No. 214887
Couri, Macarthur & Ruppe, P ,L.L.P.
P.O. Box 369
St. Michael, MN 55376
(763) 497-1930
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ACKNOWLEDGEMENT
The undersigned hereby acknowledges that costs, disbursements, and
reasonable attorney and witness fees may be awarded should this pleading be found
in violation of Minnesota Statutes Section 549.21, subdivision 2.
Date:
, 2006
Michael C. Couri, Attorney No. 214887
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