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1991-05-08 Draft DA .; , .' WILLIAM S. RADZWILL Attorney At Law Edgewood Professional Building 705 Central Ave. East . P.O. Box 369 St. Michael. Minnesota 55376 4- (612) 497-1930 May 8, 1991 City of Albertville Albertville City~all Attn: Linda Houghton 5904 Main Ave., N.E. Box 131 Albertville, MN 55301 RE: Westwia. Seeolld Addition - Developer'. Agree.ent Dear Councilmembers: In order to complete a draft of the Developer's Agreement for Westwind Second Addition it will be necessary to clarify the follwing issues: 1. There needs to be an understanding as to whether or not some or all of the items to be constructed, specifically roads, curb and gutter etc., will be constrQcted through the city as 429 assessments. The nature and extent of the improvements to be assessed must be spelled out in The Developer's agreement along with the amounts which will be required for surety regarding these items. 2. This office should receive proof that the Restrictive Covenants contained in the first Developer's Agreement have been recorded in the form approved by Bob Miller, the former City Attorney. - 3;"'f'"'rheDeveloper.s must-l!tt111d-e~'~- tl1ecltythat land to be dedicated as park land per agreement. A legal description of that portion needs too be drafted as well as deed which needs to be recorded, all at the Developer's expense. 4. There needs to be an understanding regarding the amount of discharge from the retention pond into Coun.ty Ditch No.. 9, the design of the pond, and the design of the outlet. The agreement should indicate that the Developer's will provide fencing around the pond, will provide periodic cleanout of the pond, and will, at their own expense, insure compliance with all :~~,-:,;,,--,~',~;~-:;,:',;;:':';~,_;':;,,"_;-__:;.~~...,-w.:~.::~~~,__-> ;~-'::;~,:~.::;;;;;~!~;);;;~i'~--'"~~;;:""':;"'''~i.(:~'->''-:'~''''''.........-y";rr~.~...,..,,..~ ./; ;; Letter to City of :Albertville May 8, 1991 Page 2 applicable or-agreed upon regulations or criteria regarding discharge into County Ditch No.9. This tncluCles_ reimbut-sement for any expenses- incurred by the ci ty I' ela tiv-e~t()-proCeecUn9s .0{'- hear inCjl!-~_;:egai:din9 theoutlet-Qr any other ma'Eters --L.el.ating County--Diwl1 ~ 5. The temporary easement to-begrantedtotheeity and public foracc~.ss to the dedicated park land prior to comp1eti-on of -access roads must be loeat~_<i and described by -a surveyor and a signed ~aseinent must be presel'lted-to_the city in recordable-form. 'rhisshou1d -.beanexh~bi.t: to ..thj!~Dev:.el.~!'Jt" A9re~ment::.~-;;::~:;:,.:;;;-;:-~-- - - --~ I have draftedtl're--O-eve1oper' s Agreement a-sfar as-- possible at thi..s.-point. Please. get back to me witn_any colfimel'ltsyou might have regarding the proposed a'1.reement. Very truly yours, ~/~- Andrew f:-:"acAtthur. RAB.flLL .LMr OPPiCE AJM. djm- cc Thore Meyer .- ~---- ..-.--..............----, ...~'-q--':,-:.i...~.'"-:_:~. _;,-c,"'''-' .;"",-." --~'~-;:' 0:. ,,<'-:~ -~:";'::~~Mt..~Y-';;;'t':rr~0'''-",~'''-~~''-p~''&~;'if~ r '. DEVELOPERS AGREEMENT I "WESTWIND SECOND ADDITION THIS AGREEMENT, entered into this d..3r~ day of .,,4UfJUst: ,1991 by and between John F.- Darkenwald, indiv ually and as President of John George, Inc., and George W. Yankoupe, individually and as Secretary/Treasurer of John George, Inc., collectively referred to herein as "Developer"~ and the CITY OF ALBERTVILLE, County of Wright, State of Minnesota, hereinafter referred to as "City"~ "'1l _ :.A ." ~.-.. , , .t~. . ~" . WITNESSETH: WHEREAS, Developer is the fee owner and developer of a parcel or parcels of land described in Exhibit "A", attached hereto and incorporated herein by reference, which parcels of land are either already developed as a subdivision in the City or are proposed for further subdivision and development, and which subdivision, which is the subject of this agreement, is intended to bear the name "Westwind Second Addition" and may sometimes herein~fter be referred to as the "Subject Property" or "Said Plat"~ and WHEREAS, the City has given preliminary approval of Developer's plat of "Westwind Second Addition" contingent upon compliance with certain City requirements including, but not limited to, matters set forth herein~ and WHEREAS, the City requires that certain public improvements including, but not limited to, sanitary sewer, water, storm sewer and streets be installed to serve the Subject Property and other properties affected by the development of Developer's land, to be financed through assessments levied upon the subject property under Chapter 429 of Minnesota Statutes~ and WHEREAS, the City further requires that certain on- and off-site improvements be installed by the Developer within the Subject Property, which improvements typically consist of boulevards, boulevard top soil and sod, trees planted in the front yards of those lot& abutting the boulevards, grading control per lot, bitum.inous or concrete driveway approaches, drainage swales, berming, street signs, front yard trees, sod and like items, street cleanup during project development, erosion control and siltation and retention ponds, and which improvements to the Subject Property shall be referred to herein as "Escrow Itemsn~ and WHEREAS, this Agreement is entered into for the purpose of setting forth and memorializing for the parties and subsequent owners, the understandings and agreements of the parties concerning the development of the Subject Property; NOW, THEREFORE, IT IS HEREBY AND HEREIN MUTUALLY AGREED, in consideration of each party's promises and considerations herein set forth, as follows: I~ r ~. " .. r ~ 1. Petition for Improvements. Developer herein petitions the City to construct those improvements (hereinafter referred to as "Petition Items") set forth in the Feasibility Study for the Westwind Second Addition, as prepared by Meyer-Rohlin, Inc., and dated June 3, 1991, attached hereto and marked Exhibit "B". 2. Waiver. Developer waives all right to a public hearing and other statutory rights granted to a property owner under Chapter 429 of Minnesota Statutes as the said rights therein granted relate to Petition Items as described in Exhibit "B". 3. Petition Items. The City shall construct, at its discretion, all or a portion of the Petition Items as shown on Exhibit "B" pursuant to its regular methods of making public improvements. The Developer agrees that special assessments for said improvements may be ievied by the City, without Developer's objection, after construction is commenced. Thereafter, the expense incurred or to be incurred in making the improvement shall be calculated under the direction of the Council. The Developer further agrees that the City may recover its costs and expenses related to the construction including legal, fiscal, bonding, administrative and engineering, by levy of said special assessments to be payable in equal principal installments together with interest thereon from the date of the resolution levying the assessment as determined by the City over a period of not more than twelve (12) years. 4. Petition Items - Surety. The Developer agrees to pay sufficient amounts of special assessments each year, if not already paid in prior years, for properties lying within said plat to enable the City to pay any debt service payments incurred as a result of the construction of the Petition Items, including principal and interest, as such payments corne due. Any deficiencies in the amount paid by the Developer for special assessments causing a shortage of funds with which the City may timely pay the required debt service payment(s) shall be supplemented with funds withdrawn by the City from the Developer's approved letter of credit or other surety furnished to the City. Any of said surety or guaranty of funds referred to herein that are withdrawn will be used by the City for payment of its herein referred debt service payment when due. Upon the Developer paying the delinquent special assessments, the City will repay to the surety, to the extent that the delinquent special assessments have been paid, the surety monies withdrawn, less any costs incurred by the City in conjunction with the said delinquent special assessments. The Developer shall provide the City with cash, approved irrevocable letter of credit or other satisfactory surety in the amount of twenty-five percent (25%) of the estimated total assessment resulting from the Petition Item improvements. - 2 - ~ ~......~ ~' r .\ The said twenty-five percent (25%) surety is the guarantee referred to earlier in this section that sufficient revenue is annually produced by the payment of special assessments to enable the City to pay the required debt service payment. The City may draw on said surety for cash flow purposes to supplement the Developer's payments when Developer is delinquent in the payment of said special assessments. 5. Surety. A. Developer shall perform all on- and off-site improvements including boulevards, boulevard top soil and sod, trees planted in the front yards of those lots abutting the boulevards, grading control per lot, bituminous or concrete driveway approaches, drainage swales, berming, street signs, front yard trees, sod and like items, street cleanup during project development, erosion control and a retention pond, and which improvements to the Subject Property shall be referred to herein as "Escrow Items". Developer will provide the City with cash, irrevocable letter of credit or other satisfactory surety in the sum of $i5,000 which figure represents 50% of the estimated cost of the Escrow Items. As an alternative, Developer may extend its current letter of credit required by paragraph 5 (a) of the Developer's Agreement between the City of Albertville and John F. Darkenwald and George W. Yankoupe (dated April 27, 1988) and applicable to on- and off-site improvements within the Plat of Westwind subdivision. Such extension shall be in an amount not less than $20,000, the full amount of which can be drawn upon by the City as specified under this agreement or under the April 27, 1988 Developer's Agreement referred to above. Said extended letter of credit shall be reduced to $15,000 upon completion of all on- and off-site items required by and as specified in paragraph 5 (a) of the April 27, 1988 Developer's Agreement. If so reduced, the remaining $15,000 surety shall apply to those on- and off-site improvement items described in this paragraph, and the further reduction of the $15,000 surety shall be governed by paragraph 5 (B) below. On and Off-Site Improvements/Escrow Items: The said surety shall be a guaranty to the City that with the exception of boulevard improvements (sod, trees, driveway approaches), the construction and completion of the Escrow Items by the Developer, to the City's satisfaction, will be completed on or before October 1, 1994. The boulevard improvements for each lot or parcel shall be completed to the City's satisfaction within sixty (60) days of the date that a certificate of occupancy (temporary or permanent) is issued by the City for a building located on the lot; unless the certificate of occupancy is issued after October 1st and before March 30th in any given year, in which case the boulevard improvements shall be so completed by the following June 15th. At the City's option, it may install street sign(s) and bill the direct cost of materials and installation to the Developer who will pay the bill within ten (10) days of the billing. - 3 - .c...:':--"O_'~';':'F"'~"''';:-'-''~ J ", , " B. That portion of said cash, irrevocable letter of credit, or other surety which is required with respect to the performance of on and off-site improvements shall be released upon certification of the City Engineer and approval of the City Council that such items are satisfactorily completed pursuant to this Agreement. Periodically, as payments are made by the Developer for the completion of portions of the items described under "Escrow Items," and when it is reasonably prudent, the Developer may request of the City that the surety be reduced for that portion of the project which has been fully completed and payment made therefor. The City's cost for processing reduction request(s) shall be billed to the Developer. Such cost shall be paid to the City within thirty (30) days of the date of mailing the billing. 6. Surety Release. The developer may request of the City a reduction or release of any surety provided for in conjunction with the Petition Items (described in Exhibit B) and on- and off-site improvements (listed in section five above) as follows: A. When another acceptable surety is furnished to the City to replace a prior surety. B. When the final cost amount minus previous payments becomes less than the surety provided, thus allowing the surety to be reduced to a sum commensurate with the remaining amount of the project. C. No reduction shall be made which would result in the surety held being less than thirty-five percent (35%) of the original surety until the final costs are known. D. The Developer may petition the City Council for a reduction or release of that portion of the surety attributable to the Petition Items at such time as seventy-five percent (75%) of the properties to be assessed as a result of the construction of the Petition Items either: (1) are clear of all past, present, and future assessments due, or (2) are no longer owned by John George, Inc., and the current owner has been issued a certificate of occupancy by the City for the residence built upon the property. The City Council may consider such a request, but the Council shall have the right to deny such request in the exercise of its discretion. The City's costs for processing any reduction request shall be billed at $30 per hour with a minimum of one (1) hour per reduction, and shall be billed to the Developer and paid to the City within thirty (30) days thereof. - 4 - ~ . ~ f 7. Surety Deficiency. In the event that any cash, irrevocable letter of credit, or other surety referred to herein is ever utilized and found to be deficient in amount to payor reimburse the City in total as required herein, the Developer agrees that upon being billed by the City, Developer will pay within thirty (30) days of the mailing of said billing, the said deficient amount. If there should be an overage in the amount of utilized security, the City will, upon making said determination, refund to the Developer any monies which the City has in its possession which are in excess of the actual costs of the project as paid by the City. All monies deposited with the City shall be used by the City at the City's discretion to defray the City's costs and expenses related to the project(s) referred to herein. 8. 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 assertions 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, ceases substantial field work for more than nine (9) months, or fails to provide sufficient groundcover to prevent continuing soil erosion from the Plat, Developer agrees to pay all costs the city may incur in taking whatever action is reasonably necessary to provide groundcover and otherwise restore Said Plat to the point where undeveloped grounds are level and covered with permanent vegetation sufficient to prevent continuing soil erosion from the Platted properties. In the event that said costs are not paid, the City may withdraw funds from any of the above-mentioned escrow funds for the purpose of paying the costs referred to in this paragraph. 9. Developer To Pay City's Costs and Expenses. It is understood and agreed that the Developer will reimburse the City for all administrative, legal, and professional costs incurred in the creation, administration, enforcement or execution of this Agreement. 10. Erosion and Siltation Control. A. Financial Guarantee. Before any grading is started on any site, all erosion control measures as shown on the approved erosion control plan shall be installed. In addition, a financial guarantee shall be provided to the City to insure compliance during construction. The financial guarantee for this purpose shall be the same surety as described in paragraph five above. No portion of this surety shall be returned until all disturbed areas have permanent vegetation re-established. - 5 - ~ B. All erosion control measures recommended by the City Engineer shall be strictly complied with as set forth in Exhibit "C", which is hereto attached and herein incorporated by reference. C. Developer shall cause to be constructed upon the Westerly portion of Said Plat retention and siltation ponds for run off from the developed plat. Said ponds shall conform with all requirements set forth by the City as shown in Exhibit "0" attached hereto and herein incorporated by reference. Developer shall comply with all requirements concerning length of retention, design of the ponds and location and size of outlets. Developer shall construct a siltation pond adjacent to said retention pond, and shall so contour the land such that water drainage from Said Plat first flows into said siltation pond, allqwing waterborne soil and silt to deposit in such siltation pond before said water drains into the retention pond, all according to specifications as approved by the United States Army Corps of Engineers. Developer shall clean the retention and siltation pond of excess particles, including soil, silt and phosphates during and/or upon ~ompletion of the construction phase. 11. Maintain Public Property Damaged or Cluttered During Construction. Developer agrees to assume full financial responsibility for any damage which may occur to public property including but not limited to streets, street sub- base, base, bituminous 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 and/or utility systems damaged or cluttered with debris when occurring as a direct or indirect result of the construction that takes place in Said Plat. In the event the Developer fails to clean up, maintain or repair the damaged public property mentioned above, the City shall provide the Developer with a notice of its intent to clean up, repair, or maintain such public property. Developer shall have thirty (30) days from the date of mailing of such notice to effect such clean up, repair or maintenance of said public property to the satisfaction of the City Council. In the event that Developer fails to so clean up, 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 repair, 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, either surety described above shall be responsible for reimbursing the City therefor. 12. Street Section Grading. While the development site is being graded by Developer, an independent testing firm approved by the City shall test the street section of those parts of streets platted in Said Plat designated by - 6 - ,..^'-_i.w_8;~{,~~ ..---- -- , ;. the City Engineer, so as to certify to the City that the contractor is achieving 95% of the standard-moisture density relationship of soils with exception of the top three (3) feet of the street section which shall be compacted to 100% density. Fees paid to the independent testing firm shall be paid by the Developer. The City's Engineer shall be furnished a copy of the test results either directly by the testing firm or by the Developer. 13. Temporary Easement Rights. Developer shall provide access to the property at all reasonable times to the City or its representatives for purpos~s of inspection or to accomplish any necessary work pursuant to this agreement. Developer further agrees to provide a temporary easement for public use across portions of Said Plat described on Exhibit "E" hereto attached and herein incorporated by reference. Said temporary easement is for purposes of city work on that land pr~viously dedicated as park land and for public access to the same. This temporary easement shall remain in force and effect until such time as the roadways as described in Said Plat are developed so as to provide general access to the park land. 14. Miscellaneous. Deveioper agrees that all items listed in this section are items for which it is responsible for completing and all work shall be done at Developer's expense: A. The Developer will construct a berm, including trees thereon according to the specifications of exhibit F, attached hereto and incorporated herein by reference. The Developer will execute and cause to be recorded with the wright County Recorder a Declaration of Covenant (attached as Exhibit G) as approved by the City Attorney, which declaration shall establish, among other items, the berm and provide that it shall be maintained at all times by the affected property owners in the plat in a condition at all times satisfactory to the City. The said declaration shall further provide that, upon failure of the said affected lot owners to maintain the said berm and trees, the City may, after first giving thirty (30) days mailed notice to the affected lot owners, go upon the said affected lots over and across the utility and drainage easement area dedicated in the plat of Westwind Second Addition, and maintain or replace the said berms and trees. If the City does so perform said maintenance or replacement, the City shall be entitled to replace or maintain them to the City's satisfaction and to then assess the cost thereof to all the affected lots in said plat. Said assessment shall be payable in one (1) year. B. Developer shall comply with all requirements set forth for drainage into the county ditch 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 Developers expense. - 7 - .. " ,',. ., .... . J '~""""-:.."----- .-....;;.::.;:~-.,. :,:",,:,:,~~~~:o;.:~.~.,;;_~:~ ....: '. . f 15. Draw on Expiring Letter ofCredit~ In the event a surety or other form of guarantee referred to herein is in the form of an irrevocable letter of credit, which by its terms will become null and void prior to the time at which all monetary or other obligations of the Developer are paid or completed, it is agreed that the Developer shall provide the City with a new letter of credit or other surety, acceptable to the City, at least forty-five (45) days prior to the expiration of the expiring letter of credit. If a new letter of credit is not received as required above, the City may declare a default in the terms of this Agreement and thence draw in part or in total, at the City's discretion, upon the expiring letter of credit to avoid the loss of surety for the continued obligation. 16. Violation of Agreement. In the case of default by the Developer, its successors or assigns, of any of the covenants and agreements herein contained, the City shall give Developer thirty (30) days mailed notice thereof, and if such default is not cured within said thirty (30) day period, the City is hereby granted the right and privilege to declare any deficiencies governed by this Agreement due and payable to the City in full. The thirty (30) day notice period shall be deemed to run from the date of deposit in the united States Mail. The City may thence immediately and without notice or consent of the Developer use all of the deposited escrow funds, irrevocable letter of credit or other surety funds to complete the Developer's obligations as set forth herein, whether related to Petition Items or on- or off-site improvements, and to bring legal action against the Developer to collect any sums due to the City pursuant to this Agreement, plus all costs and attorney's fees incurred in enforcing this agreement. Paragraph 16 shall not apply to failure by subsequent lot owners to maintain the berm as required by Paragraph 14 (A) above and the remedy therein provided shall be the sole remedy for such default with respect to said Paragraph 14 (A) . Paragraph 16 shall not apply to any acts or rights of the City under paragraph 15 above, and no notice need be given to the Developer as a condition precedent to the City declaring a default or drawing upon the expiring irrevocable letter of credit as therein authorized. 17. Attorney's Fees. The Developer will pay all reasonable attorney's fees incurred by the City and as fixed by the Court in the event a suit or action is brought to enforce the terms of this Agreement or in the event an action is brought upon a bond or letter of credit furnished by the Developer as provided herein. 18. Notification Information. Any notices to the parties herein shall be by registered mail addressed as follows: - 8 - ".;~.'...,..;.~-.'~~ ~ " -' City of Albertville c/o City Clerk P. O. Box 131 Albertville, MN 55301 Telephone: (612) 497-3384 John F. Darkenwald or George W. Yankoupe John George, Inc. 7535 N.E. River Road Elk River, MN 55330 Telephone: (612) 441-3700 19. Agreement Effect. This Agreement shall be binding upon and extend to the representatives, heirs, successors and assigns of the parties hereto. Subscribed and sworn toAbefore me this dl.3 ~J day of 914'Ult.lJ -t- , 1 91. v .~ ~ . Pub 1 i c t;?"'.'--~"" MEI CHEN J.' EDLUND. 1 ~_ NOTARY PUBLIC-MINNESOTA 'WY WRIGHT COUNTY My Commission Expires June 23. 1993 . . DRAFTED BY: Michael C. Couri Attorney at Law Radzwill Law Office Edgewood Professional Building 705 Central Avenue East P. O. Box 369 st. Michael, MN (612) 497-1930 55376 - 9 - ,.. ,. ~ t 1 Exhibit "A" , __--AI , y t ( !That port of Lho SouthoofJL QUilrLcr of Section 35, Township 121, Honge 21., ~lri<J"t County, MinncaoLR, 'descr! bec!" ilU [ollo...,s: Beginning at the southwest corner of Lot 2, Block 1, Woat...linc1, Dccording to pI ut theroof on fi lu and flf record in the offi ce of the County neconlerj lhen'cc S GOo I,IJ' 15" E, plot bearing, Dlong tho uouLher1y line of Lot Z onp Lot 3, 0 dlutnnco of 365.00 feeti Lhenc(,:) 5 6511 50' 15" E olong the uouth Ijne of sa tel l,ot 3, 1I disLc\ncc of 270.00 feel 1.0 the norlhwoaL corner of Lot ~, Dlock Ii thence 5 350 l~' 00" \01, 11 cJjfjt.on'cc of 1.,7.00 fecti thence S 21,037' 00" \0/, LJ diul~oncc oC 01,.00 fcct; thence S 200 20' 00" \'1, l1 distonc(1 of 323.00 (eet; thence 5 230 Z9' DO" ~I, 0 distance of 150.00 feeLi.thence 5 37036' 00" ~/, 'a di ALDnCH of 57.00 fceti thence' S 5:P 5!j' DO" W, a dis\;ilnce of 57.00 fect.j thence S 710 25' 00" 'tl, 0 c1lsl.once of 57 . 00 fee t; l hen c e SOl. 0 0 5' 00 " \'1, D d i 5 tan c l~ 0 f 7 1. 00 fee L Lo tho norlh...IC~1. corner of Lot "I, nloc:l~ 2 of said plat; then co continue S 01,0 05' 00" \'/, a disLonce of 75.00 fecti thence on 'a hear.fng of \'/est, D diatonce of 63.00 feet; thence N 0" 31' l)lI W" a distance of 100.12 feeti thenc:e~ N 120 21,' 00" E, a distDnce of 160.00 feel; thence tl 000 13' 30" \'/, a dislnrlce of 100.00 fect; Ulence N 7014' 25" I:: , a distance of 113.05 fcet; the n c e N 20 0 46' 2 5" \'f, a d hj t. D n ceo f U 7 , 54 fee t; tile n c e N 1 0 0 I, 9 j ~:3 " ~ , a d i s L u n ceo f 21 0 . 1 A fee t,; the n c eN" I, 0 03' 1,5" \'1, , i:I cI i s I. il n ceo f 00. 00 fee t; l hen c e N 77 0 ~ ~' 3 9" \'/, 0 d 1 s tan c e (If 75.0,0 fecti l.hr:nce N lZo 16' 51," f:, a difiLance oC 110.92 feel; thence northwesterly along fI n(Jn-Lun(/(~nl.ial cur'H', concave t.o Lhe 5oulh\-/est, hDviny a rnrlius of 19DY.90 feet i.lnd fI central Dngle of 10 31' 05", D c1isl:"nce of 52.19 feet (the chOl'd of said cu,'ve bears N 770 52' 500 \'/, disLant 52.19 feeL); thence N 110 211. 37" E, not l.i3ngent Lo Gaid curve, a distance of 60.00 feeti thence N 120 0/,' 39" E, a dislance of 126.40 fect; thence SOl.O 53' 00" E, 0 distance of 37.00 feet; t.hence S 71,0 03' 1,5" E, a di sLonce of 221..00 fect to the point of beginning. 'CC~'