2003-09-08 Agreement to Allow Installation of Municipal Improvements
CITY OF ALBERTVILLE
AGREEMENT TO ALLOW THE INSTALLATION OF
MUNICIPAL IMPROVEMENTS
. . .11;
THIS AGREEMENT, entered mto thIS day o~September, 2003 by and
between Woodside Karston Cove, LLC, a Minnesota Limited Liability Company, referred
to herein as "Developer"; and the City of Albertville, County of Wright, State of Minnesota,
hereinafter referred to as "City";
WHEREAS, Developer seeks to install certain public improvements at Developer's
expense on that property to be known as Karston Cove Third Addition (hereafter, "Subject
Property;" a description of said property is attached as Exhibit A), said improvements to
include bituminous street, curb and gutter, grading, drainage, sanitary sewer, water and
storm sewer (hereafter "Municipal Improvements") prior to final plat approval; and
WHEREAS, the City is willing to allow the installation of said Municipal
Improvements prior to final plat approval, provided Developer complies with the conditions
of this Agreement.
NOW, THEREFORE, IT IS HEREBY AND HEREIN MUTUALLY
AGREED, in consideration of each party's promises and considerations herein set forth, as
follows:
1. Construction of Municipal Improvements.
A. The Developer shall be allowed to construct those Municipal Improvements
located on and off Subject Property as detailed in the Plans and Specifications
for Karston Cove Third Addition, as prepared by Westwood Professional
Services, Inc. dated August 15, 2003 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.
B. The City shall, at its option, have the City Engineer present on Subject
Property for inspection purposes at all times (or such times as the City may
deem necessary) during the construction and installation of said Municipal
Improvements. Developer agrees to pay for all costs incurred by the City
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during said inspections.
2. Security. To guarantee compliance with the terms of this permit and to reimburse
the City for any damage to public property as a result of the installation of said
Municipal Improvements permitted herein, the Developer shall furnish the City with
a cash escrow or irrevocable letter of credit from a bank ("security") in the amount of
$25,000. The bank and form of the letter of credit shall be subject to the approval of
the City Attorney. The letter of credit shall be for a term ending not earlier than one
year from the date of this agreement, and shall be renewed annually by the
Developer until all Municipal Improvements are completed or until a substitute
security acceptable to the City is provided to the City. The City reserves the right to
draw on the letter of credit anytime within 45 days of its expiration if the Developer
does not provide the City with a renewal or an acceptable substitute letter of credit.
The City may draw on said letter of credit or surety to remedy any violation of this
Agreement, to reimburse itself for costs incurred in the drafting, execution,
administration or enforcement of this Agreement, or to otherwise fulfill the
obligations of Developer under this agreement. Developer 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 amount required above. 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.
3. Abandonment of Project - Costs and Expenses. In the event Developer should
abandon the proposed development of the Subject Property, the City's costs and
expenses related to attorney's fees, professional review, drafting of this Agreement,
preparation of the feasibility report, plans and specifications, and any other expenses
undertaken in reliance upon Developer's various representations shall be paid by said
Developer within thirty (30) days after receipt of a bill for such costs from the City.
In addition, in the event the Developer abandons the project, in whole or in part, fails
to provide sufficient ground-cover to prevent continuing soil erosion from the
Subject Property, or fails to leave the abandoned property in a condition which can
be mowed using conventional lawn mowing equipment, Developer agrees to pay all
costs the City may incur in taking whatever action is reasonably necessary to provide
ground-cover and otherwise restore Subject Property to the point where undeveloped
grounds are level and covered with permanent vegetation sufficient to prevent
continuing soil erosion from Subject Property and to facilitate mowing of Subject
Property. In the event that said costs are not paid, the City may specially assess such
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EXHIBIT A
The Real Property subject to the Agreement to Allow Installation of Municipal
Improvements is legally described as follows:
Outlot A
All said property in Karston Cove First Addition Plat, City of Albertville, County of Wright,
Minnesota.
Bond/Letter of Credit Approval Form
Request ID DJEN-5RFRLZ
Requested By
Request Date
Status
Re uester
Don Jensen
Additional Information
Division:
Don Jensen
09/16/200303:07:55 PM
New
A rovers
Jim Lambeth
Entered when
submitted
Scott Jones
Heather Bowles
Business Unit.Cost Code #: 60010000 (Used to pay invoices/premiums)
Minnesota
Project:
Type:
Issue Amount:
Bond Description:
With Whom:
Bond Number:
Date Due/Expired: 11/30/2004 (Enter as MM/DD/YY)
Date Issued: 09/19/2003 (Enter as MM/DDNY)
Estimated date for Reduction/Removal: 11/30/2004 (Enter as MM/DD/YY)
Karston Cove 3rd Addition
Letter of Credit
$25,000.00 (Numeric Values only)
Guarantee to construct Public Utilites per approved plans for 64th Street
Key Bank
Estimated Amount of Reduction:
$5,000.00 (Numeric Values only)
Percentage of job left to complete: 100% (Numeric Values only)
Current Status: approved, awaiting surety
Additional Comments:
This LOC allows early work and minimizes future LOC costs for the same work.
_ Date of Release:
Date Composed:
Date Modified:
09/16/2003
KeyBank National Association
Application and Agreement for Irrevocable Standby Letter of Credit
To: International Standby Services Group
4910 Tiedeman, 4th floor
Brooklyn, Ohio 44144
Mailcode: OH-0l-51-0435
Fax Number: (216) 813-3719
Date: 9-15-2003
Please issue your Irrevocable Letter of Credit and notify the Beneficiary by:
D Mail D Swiftffelex [8J Courier
Beneficiar : (show full name & com lete street address)
A Iicant: (show full name & com lete street address
The City of Albertville
Woodside Karston Cove, LLC
c\o City Clerk
13736 Johnson Street NE
P.O. Box 9
Ham Lake, MN
Albertville, Minnesota 55301
55304
Ex iration Date: 11-30-2004
Dollar Amount (USD): $ 25,000
(Amount in words):
twenty-five thousand dollars and 00\100 cents
[8J Automatic Extension Clause
[8J Ultimate Ex iration Date: 2\5\2005
Da s Notice: 60
Available b
IZI 1.
D 2. Beneficiary's statement purportedly signed by an authorized individual or (Beneficiary) certifying "We hereby certify that invoices under sales agreement
between (Applicant) and (Beneficiary) have been submitted for payment and said invoices are past due and payable".
D 3. Beneficiary's statement purportedly signed by an authorized individual of (Beneficiary) certifying "We hereby certify that (Applicant) has failed to honor
their contractual agreement dated _between (Applicant) and (Beneficiary) and that payment has not been made and is _ past due.
D 4. Beneficiary's statement purportedly signed by one of its authorized individuals certifying that _ (Applicant) was the successful bidder under the
Tender No. _ dated _ for supply of _ and that
_ (Applicant) has withdrawn their bid or failed to enter into contract.
[8J 5. Beneficiary's statement, purportedly signed by an authorized individual reading:
(Please indicate below the wordin which is to ap ear in the statement to be presented.)
I. Beneficiary's certificate, signed by an authorized representative of The City of Albertville stating the following Invoice or invoices were not paid by
Woodside Karston Cove, LLC to The Cit of Albertville within the s ecified eriod stated on the invoice.
2. Copies of relative invoices must accompany drafts. All bank charges connected with this Letter of Credit are the responsibility of Woodside Karston
Cove, LLC. All drafts drawn under this Letter of Credit must be marked:
Drawn under ( our name) Letter of Credit #
D 6. No statement or document by the beneficiary other than a draft is required to be presented under this UC.
Partial Drawings:
IZI Permitted
Charges for:
D Not Permitted
D Beneficiary
[8J Applicant
S ecial instructions or conditions:
Copy of Improvement Agreement forwarded to Woodside Utah. This LOC secures the completion of a public street and underground utilty pipes, pavement
and sidewalks to allow building of a 43 unit townhome development. Steet lights and undergound small utilties are also covered. Work is expected to be
substantiall com leted b November 30, 2003. Sure is not ex ected to be lowered or released until late 2005. We can lower several times a ear.
The opening of this credit is governed by the terms and conditions as set forth in the credit agreement. Furthermore, the applicant shall include revisions of
the terminolo set forth above as ou deem necessar . IJwe hereb a ree to the terms and conditions, convenants, and a reements above.
This application and agreement are subject to the current uniform customs and practice for documentary credits fixed the International Chamber of
Commerce and to the terms and conditions set forth in the Reimbursement A reement.
(Customer's Signature)
Bank officer
(Customer's Bank Sign Here-
if other than Ke Bank National Association
Date: of issue
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FROM:
,~ DONALD JENSEN, VICE PRESIDENT LAND DEVELOPl',-1ENT
~ DIRECT DLAT, (763) 772-1012 I donj@woodsidegroupinc.com
I
o ROGER FINK, LAND DEVELOPMENT DIRECTOR
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DIRECT DIAL (763) 772-1020 / rogerf@woodsidegroupinc.com
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MESSAGE:
Number of Pages: /11'
If you do not receive the number of pages listed above, please call the number below.
13736 Johnson Street NE * Ham Lake,.MN 55304 * Fax (763) 757-4094, 772-1019
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