1979-09-10 Developer's AgreementDEVELOPER'S AGREEMENT
Sept-!mbnr
THIS AGREEMENT, made this loth day of A-9r 't, 1979, by and
between the City of Albertville, Minnesota, a municipal corporation,
hereinafter referred to as the "City", and Barthel Homes, Inc.,
a Minnesota corporation, hereinafter referred to as the "Developer";
PdHEREAS, the Developer has made application for and has
received approval of a plat of land within the corporate limits of
the City, said plat described as "Barthel's Industrial Park" and
whereas Developer desires that there be constructed within said
plat certain roadways, water and sewer mains and storm sewer, and
that the cost for same be assessed back against said property;
WHEREAS, the City is desirous to cooperate with said
Developer in providing certain improvements to said property,
which would be assessed back to the property as special assessments,
and the City issue certain bonds for said improvements provided
this Developer Agreement is executed;
WHEREAS, the Developer intends to assign his rights and
obl.ications under this Agreement to a partnership comprising of
the following persons: Roger Scherer, Michael Scherer, Gregory
Scherer, Gary Scherer, Roy Ekrem, Joseph C. Anton, Jr., Donald
Anundsen, and Kenneth Barthel;
NOW, THEREFORE, in consideration of the mutual covenants,
promises and conditions hereinafter contained, it is hereby agreed
as follows:
1. In accordance with the policies and ordinances of the
City, the following described "Improvements" shall be constructed
and installed on the terms and conditions hereinafter contained:
a) Street grading, graveling and stabilizing;
b) Storm sewers, as determined to be necessary by
the City Engineer; including all necessary catch
basins, inlets and other appurtenances;
c) Sanitary sewer laterals or extensions, including
all necessary building services, and other
appurtenances;
d) Watermain laterals or extensions, including all
necessary building services, hydrants, Valves and
other appurtenances;
2. The Developer hereby warrants and represents to the City
that its interest in said plat and subdivision is that of fee owner.
3. The above -described improvements which the Developer
has petitioned the City to install and finance through the regular
City assessment procedure are hereinafter referred to in their
aggregate as "Improvements".
4. The Developers agree that the entire cost of the
installation of the said improvements including all reasonable
engineering, legal and administrative costs incurred by the City
.d which are attributed to the benefit of the Barthel Industrial
Park is to be assessed against the parcels of land in said Barthel
Industrial Park.
5. The parties hereto agree on the following assessment
terms:
a) Twenty (20) even annual installments of combined
principal and interest with the first installment
coming due with taxes payable in 1981;
b) Interest on said special assessments to be at the
rate of Eight (8%) percent per annum.
c) In the event a permit application is made or a
parcel sold by Warranty Deed or a building permit
is granted prior to the fall of 1980 when the
assessment role is actually filed, the Developer
will escrow with the City an amount equal to 1.25
times the estimated amount of the assessment
against that particular parcel of property. To the
extent that escrow exceeds the later determined
assessment, the excess escrowed amount would be
returned to the Developer or his assigns, together
with any interest earned by the City on said excess
amount.
d) The entire balance of special assessments due against
a given parcel of property within the development
shall be paid in full at the time of building permit
application or upon:.the deliver of a Warranty Deed
for the given parcel, whichever event shall occur
first. In the event any parcel is sold pursuant to
a Contract for Deed, the Developer, for himself, and
his assigns, agrees that the Contract for Deed will
contain terms stating that a default by the Contract
Vendoe in regard to the payment of any special assess-
ments due against said parcel shall be a default under
the Contract. Further, it is agreed that in the
event a parcel is sold pursuant to a Contract for
Deed, the payment of special assessments shall remain
the responsibility of the Developer for purposes of
this Agreement and particularly in regard to the
Letter of Credit mentioned hereinafter.
6. In order to provide security to the City in regard to
the payment of special assessments, the Developer or his assigns,
agrees to provide to the City an irrevocable Letter of Credit from
a reputable lending institution payable to the City of Albertville in
the amount of Three Hundred Thousand ($300,000.00) Dollars. The
Letter of Credit may be drawn upon by t-ie City upon the City presenting
the Letter of Credit to the lending institution in accordance with
the following terms:
a) The Letter of Credit which will be in effect until
December 31, 1980, may be drawn upon by the City
in its entirety in the event the City does not
receive an extension of that Letter of Credit effective
through December 31, 1981. The City must receive this
extension of the Letter of Credit through December 31,
1981, on or before December 10, 1980.
- 2 -
b) The Letter of Credit which will be in effect
until December 31, 1981, may be drawn upon by
the City in its entirety in the event the
Developer, its successors or assigns does not
pay the semi annual assessments due on May 31,
1981, or October 31, 1981. Further, the City
may draw upon said Letter of Credit in its
entirety if the City does not receive an extension
of the Letter of Credit effective through
December 31, 1982. The City must receive this
extension of the Letter of Credit through
December 31, 1982, on or before December 10, 1981.
c) The Letter of Credit which will be in effect until
December 31, 1982, may be drawn upon by the City
in its entirety in the event the Developer, its
successors or assigns does not pay the semi annual
assessments due on May 31, 1982, or Ocrober 31,
1982. Further, the City may draw upon said Letter
of Credit in its entirety if the City does not
receive an extension of the Letter of Credit
effective through December 31, 1983. Said receipt
of the extension of the Letter of Credit must be
received by the City on or before December 10, 1982.
d) The Letter of Credit which will be in effect until
December 31, 1983, may be drawn upon by the City in
its entirety in the event the Developer, its successors
or assigns does not pay the semi annual assessments
due on May 31, 1983, or October 31, 1983. Further,
the City may draw upon said Letter of Credit in its
entirety if the City does not receive an extension
of the Letter of Credit effective through December 31,
1984. Said receipt of the extension of the Letter of
Credit must be received by the City on or before
December 10, 1983.
e) The Letter of Credit which will be �n effect pntil
December 31, 1984, may be drawn upon by the City in
its entirety in the event the Developer, its successors
or assigns does not pay the semi annual assessments
due on May 31, 1984, or October 31, 1984. Further,
the City may draw upon said Letter of Credit in its
entirety if'the City does not receive an extension
of the Letter of Credit effective through December 31,
1985. Said receipt of the extension of the Letter of
Credit must be received by the City on or before
December 10, 1984
f) The Letter of Credit which will be in effect until
December 31, 1985, may be drawn upon by the City in
its entirety in the event the Developer, its successors
or assigns does not pay the semi annual assessments
due on May 31, 1985, or October 31, 1985.
g) The amount of the Letter of Credit which is required
for the years 1983, 1984 and 1985 pursuant to
Paragraphs 6d), 6e) and 6f) above, may be in an
amount equal to the total amount due on the principal
and interest payment on the bonds for those years
combined, if that total amount is less than Three
Hundred Thousand ($300,000.00) Dollars.
- 3 -
h) The amount that the City may draw on the Developer's
Letter of Credit in the years 1983, 1984 and 1985,
may not exceed the total amount due on the principal
and interest payments on the bonds for those years
combined.
i)• The amount drawn on the Letter of Credit by the
City, if any, will not be reduced by the amount
of prepayment which had been made in the previous
year, but would be reduced by the proportion in
the amount of the annualized portion of the prepayment
as compared to the total annual installment due of
the assessment in that year. Any amount drawn on
the Letter of Credit shall, however, be subtracted
from the final installments due on the total assessment
in inverse order.
j) It is agreed that the City exercising its rights
in the Letter of Credit in no way precludes the
City from its normal recourse in the event of
unpaid assessment installments.
k) The City agrees to give Developer, its successors
or assigns, ten (10) days written notice before
presenting the Letter of Credit for payment; the
written notice shall state the reasons for present-
ing the Letter of Credit.
7. The City agrees to maintain the septic tank system and drain
field to be located on or near Lot 12, Block 2, Barthel's Industrial
Park, until such time as the City'$ own sewage disposal system is
completed and it is no longer necessary to use the septic tank system
and drain field to service Barthel's Industrial Park.
8. The City further agrees that the special assessments levied
on Lot 12, Block 2, Barthel's Industrial Park, shall be deferred with
no interest until the City's own sewage disposal system is completed
and it is no longer necessary to use said Lot for sewage disposal in
Barthel's Industrial Park. •
9. The terms and provisions hereof shall be binding upon and
inure to the benefit of the heirs, representatives, successors
and assigns of the parties hereto and shall be binding upon all
future owners of any or any part of the said Subdivision known as
Barthel's Industrial Park, and shall be deemed covenants running
with the land. References herein to Developer, if there be more
option of the City, shall be placed of record so as to give notice
hereof to subsequent purchasers and encumbrancers or all or any part
of the Subdivision and all recording fees, if any, shall be paid
by the Developer.
10. All plans, special provisions, proposals, specifications
and contracts for the improvements financed and let pursuant to
this Agreement shall be and hereby are made a part of this Agreement
by reference as fully as if set forth herein in full.
- 4 -
IN WITNESS WHEREOF, the City and Developer have caused
this Agreement to be fully executed on the day and year first
above written.
STATE OF MINNESOTA
SS.
COUNTY OF ujj-iIGK
CITY OF ALBERTVILLE
By
Its Mayor
By 'A 1( Cl, 4, c < l r L I.
Its City Clerk
DEVELOPER
Barthel Komes, Inc.
By
Its, _ P„esadert
Y
Its 4�r•ret.gry
On this loth day of 6eatember , 1979, before me, a Notary
Public within and for said County, personally appeared
Corriclius L. Paulson and Donald berni.ng .
to me personally known, who being each by
me duly sworn, did say that they are respectively the Mayor and the
City Clerk of the corporation named in the foregoing instrument, and
that the seal affixed to said instrument is the corporate seal of said
corporation, and that said instrument was signed and sealed in behalf
of said corporation, and acknowledged said instrument to be the free
act and deed of said corporation. I
• R.'.n.'IM.MMMMM'.hMMMM/J��MM/�h •
iHOMAS P. LIUA S
NOTARY PUeLIC-MINNESOTA
`3 WRIC0 COUNTY
My Commission Expires Feb. 14. 1984,
STATE OF MINNESOTA
) SS.
COUNTY OF�titi
On this day of ��� (; ��,�(�{�,2 , 1979, before me, a Notary
Publ*c within and for said County, personally appeared
►`'AS'�Z'>�i_ and r:E 0 (2
4Rtr1�t
to me personally known, who being each by me duly sworn, dim say t at
they are respectively the �:� ' �Y ` and I C C 1;
of the corporation named in the foregoing instrument, and that the
seal affixed to said instrument is the corporate seal of said
corporation, and that said instrument was signed and sealed in behalf
of said corporation, and acknowledged sail instrujne�t to be the free
act and deed off c�„ppLpQration��—
E
JOHN R. GRIESNOTARY PUBLIC -MINNESOTAHENNEPIN COUNTY ��Cpmmon ExDiroe June 3.
Noc�zy Public
bs�
- 5 -