2018-01-16 City Council Agenda Packetlbertvy � I \ Mayor and Council Request for Action
January 11, 2018
SUBJECT: LEGAL - AMENDMENT TO TOWNE LAKES 6M AND 7TH ADDITION DEVELOPMENT
AGREEMENTS
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the
following:
MOTION TO: Approve First Amendment to Conditional Use Planned Unit Development
Agreement Towne Lakes 7th Addition and Third Amendment to Planned Unit Development
Agreement Towne Lakes 6th Addition, contingent on approval of the same by the Sentry Bank.
BACKGROUND: The singe family homes in both the Towne Lakes 6th Addition and Towne
Lakes 7th Addition are subject to the terms of the Homeowners' Association requirements. One
of those requirements calls for the Developer to put up a $2,000 cash escrow for the finished
landscaping on each lot before a building permit is pulled for that lot. The Developer has
indicated that because of increased construction demand in the Twin Cities area, construction
costs have dramatically increased since last spring. In an attempt to mitigate the impact of the
recent cost increases, the Developer has asked the HOA to waive the $2,000 landscape escrow
requirement, but the HOA is only willing to do so if the City could use the letter of credit
provided by the Developer to secure the landscaping required by the HOA.
These two amendments require the Developer to install the landscaping required by the HOA,
and allow the City to retain up to $20,000 of the letter of credit to secure the finished landscaping
required by the HOA (which is in addition to the landscaping plan that is attached to the
Development Agreements). The HOA will still monitor the installation of the finished
landscaping. The City will simply hold the letter of credit and, if necessary, install the finished
landscaping on a lot if the Developer or its builder fails to do so. This arrangement will free up
the Developer's cash that would otherwise be held by the Association and should help offset
some of the burden of increasing costs faced by the Developer
The Developer is not proposing and City Staff is not recommending that the letter of credit be
increased as the likelihood that more than $20,000 would be needed from the letter of credit to
cover HOA required landscaping appears to be minimal.
KEY ISSUES:
• This change extends the letter of credit to cover finished landscaping costs of $2,000 per
lot.
• Staff estimates that this additional landscaping burden would likely not apply to more
than 10 finished homes at any given time.
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Meeting Date: January 16, 2018
ends Page 15
Mayor and Council Request for Action — January 16, 2018
Amendment to Towne Lakes 6th and 7th Addition Development Agreements. Page 2 of 2
• Because these changes will extend the letter of credit to additional items not currently
included in the Development Agreement, we will need the bank to agree to these
changes.
• Staff does not expect these changes to be an additional burden on the City.
POLICYIPRACTICES CONSIDERATIONS: These changes are relatively minor and are
being proposed as a means of assisting the Developer to meet the requirements of the HOA and
changing market conditions. This situation is unique to properties covered by the Towne Lakes
HOA .
FINANCIAL CONSIDERATIONS: These changes will have no financial impact upon the
City, but does obligate the letter of credit to cover what is estimated to be approximately $20,000
of additional landscaping improvements at any given time.
LEGAL CONSIDERATIONS: The City Council has the authority to amend the Development
Agreement as it deems appropriate.
Responsible Person/Department: Mike Court, City Attorney
Submitted Through: Adam Nafstad, City Administrator-PWD
Attachments:
• First Amendment to Conditional Use Planned Unit Development Agreement Towne
Lakes 7th Addition
• Third Amendment to Planned Unit Development Agreement Towne Lakes 6th Addition.
P:1City Council\Council Packet Informationl201 Sl011618\RCA re alnendinent t❑ Developer's Agreement.docx
Meeting Date: January 16, 2018
ends Page 16
CITY of ALBERTVILLE
FIRST AMENDMENT To CONDITIONAL USE
PLANNED UNIT DEVELOPMENT AGREEMENT
TOWNF LADS 7TH ADDITION
WHEREAS, the City of Albertville ("City"), a Minnesota municipal
corporation, and USB Ventures, LLC ["Developer"] entered into an Agreement titled
"Conditional Use Planned Unit Development Agreement Towne Lakes 7th Addition"
["Developer's Agreement"] dated December 7, 2017 and recorded as document
number 1360791 at the Wright County Recorder's office, Wright County, Minnesota;
and
WHEREAS, Developer now desires to enter into this First Amendment To
Conditional Use Planned Unit Development Agreement to modify provisions related
to installation of landscaping and the uses of the letter of credit provided to the
City •
NOW, THEREFORE, IT IS HEREBY AND HEREIN MUTUALLY AGREED, in
consideration of each party's promises and considerations herein set forth, as
follows:
1. Paragraph 4.F shall be added as follows:
F. Developer shall cause to be installed on each lot, immediately
following issuance of an occupancy permit for a single family home
constructed on such lot, all landscaping required by the Towne Lakes
Community Association, provided, however, that is said occupancy
permit is issued after September 30th and before May 1 Sth, Developer
shall have until the following June 1st to install said landscaping on
such lot.
2. Paragraph 7.A shall be amended to read as follows:
A. Periodically, as payments are made by the Developer for the completion
of portions of the Municipal Improvements and/or on- and off -site
Improvements, and/or landscaping improvements, and when it is
reasonably prudent, the Developer may request of the City that the
surety be proportionately reduced for that portion of the Municipal
Improvements and on- and off -site improvements and landscaping
improvements which have been fully completed and payment made
therefor, except that the landscaping portion of the letter of credit shall
not be reduced below the lesser of the following: 1] $20,000; or 2]
$2,000 per residential lot in Said Plat that does not have landscaping
installed as required by the Towne Lakes Community Association. All
1
Agenda Page 17
such decisions to reduce the letter of credit shall be at the discretion of
the City Council. The Ciry's cost for processing reduction request(s)
shall be billed to the Developer. Such cost shall be paid to the City
within thirty (30) days of the date of mailing of the billing.
1. Developer's Agreement. Except as specifically altered by this Amendment,
the terms of the Developer's Agreement, the First Amendment and the
Second Amendment shall remain in full force and effect for the properties in
Towne Lakes 6th Addition.
Dated this day of January, 2018.
CITY of ALBERTVILLE,
By
Its Mayor
By
Its Clerk
HSB VENTURES, LLC.
By
Its:
STATE OF MINNESOTA)
)ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this day of
January, 2018 by Jillian Hendrickson as Mayor of the City of Albertville, a Minnesota
municipal corporation, on behalf of the city and pursuant to the authority of the City
Council.
2
Agenda Page 18
Notary Public
STATE OF MINNESOTA)
)ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this day of
January, 2018, by Kimberly Hodena, as Clerk of the City of Albertville, a Minnesota
municipal corporation, on behalf of the city and pursuant to the authority of the City
Council.
Notary Public
STATE OF MINNESOTA)
)ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this day of
2018, by , the of HSB Ventures, LLC.
DRAFTED BY:
Couri & Ruppe P.L.L.P.
P.O. Box 369
705 Central Avenue East
St. Michael, MN 55376
(763) 497-1930
Notary Public
3
Agenda Page 19
CITY of ALBERTVILLE
THIRD AMENDMENT To PLANNED iNIT
DEVELOPMENT AGREEMENT
TOWNE LAKES 6TH ADDITION
WHEREAS, the City of Albertville ("City"), a Minnesota municipal corporation, and
Contractor Property Developers Company entered into an Agreement titled "Planned Unit
Development Agreement Towne Lakes 6ih Addition" ("Developer's Agreement") dated
September 7, 2005 and recorded as document number 1003634 at the Wright County Recorder's
Office, Wright County, Minnesota; and
WHEREAS, Ki ber Section 36, LLC ("Kilber"), a North Dakota limited liability
company, purchased the property subject to the Developer's Agreement; and
WHEREAS, Kiber and the City executed an Amendment to Planned Unit Development
Agreement, Town Lakes 6th Addition ("First Amendment") which has been recorded as
document number 1164289 at the Wright County Recorder's office; and
WHEREAS, Kiber sold the property that is the subject of the Developer's Agreement
and the First Amendment to HSB Ventures, LLC., a Minnesota Limited Liability Company
("Developer"), who entered into a Second Amendment to Planned Unit Development Agreement
("Second Amendment") which has been recorded as document number 1354394 at the Wright
County Recorder's office;; and
WHEREAS, Developer now desires to enter into this Third Amendment To Planned
Unit Development Agreement to modify provisions related to installation of landscaping and the
uses of the letter of credit provided to the City.;
NOW, THEREFORE, IT IS HEREBY AND HEREIN MUTUALLY AGREED, in
consideration of each party's promises and considerations herein set forth, as follows:
1. Paragraph 4.F shall be added as follows:
F. Developer shall cause to be installed on each lot in Block 2 of Said Plat,
immediately following issuance of an occupancy permit for a single family home
constructed on such lot, all landscaping required by the Towne Lakes
Community Association, provided, however, that if said occupancy permit is
issued after September 30th and before May 15th, Developer shall have until the
following June 1 St to install said landscaping on such lot.
2. Paragraph 7.A shall be amended to read as follows:
A. Periodically, as payments are made by the Developer for the completion of portions
of the Municipal Improvements and/or on- and off -site Improvements, and/or
landscaping improvements, and when it is reasonably prudent, the Developer may
1
Agenda Page 20
request of the City that the surety be proportionately reduced for that portion of the
Municipal Improvements and on- and off -site improvements and landscaping
improvements which have been fully completed and payment made therefor, except
that the landscaping portion of the letter of credit shall not be reduced below the
lesser of the following: 1) $20,000; or 2) $2,000 per residential lot in Said Plat that
does not have landscaping installed as required by the Towne Lakes Community
Association. All such decisions to reduce the letter of credit shall be at the
discretion of the City Council. The City's cost for processing reduction request(s)
shall be billed to the Developer. Such cost shall be paid to the City within thirty (30)
days of the date of mailing of the billing. The City may at all times retain the letter
of credit in an amount sufficient to complete the unfinished Municipal
Improvements and landscaping required by the Developer's Agreement.
3. Developer's Agreement. Except as specifically altered by this Amendment, the terms of
the Developer's Agreement, the First Amendment and the Second Amendment shall
remain in full force and effect for the properties in Towne Lakes 6ih Addition.
Dated this day of January, 2018.
STATE OF MINNESOTA )
ss.
COUNTY OF WRIGHT )
CITY of ALBERTVILLE,
By
Its Mayor
By
Its Clerk
HSB VENTURES, LLC.
By
Its:
2
Agenda Page 21
The foregoing instrument was acknowledged before me this day of January,
2018 by Jillian Hendrickson as Mayor of the City of Albertville, a Minnesota municipal
corporation, on behalf of the city and pursuant to the authority of the City Council.
Notary Public
STATE OF MINNESOTA )
ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this day of January,
20181 by Kimberly Hodena, as Clerk of the City of Albertville, a Minnesota municipal corporation,
on behalf of the city and pursuant to the authority of the City Council.
Notary Public
STATE OF MINNESOTA )
ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this
, 20181 by , the
Ventures, LLC.
DRAFTED BY,
Couri & Ruppe P.L.L.P.
P.O. Box 369
705 Central Avenue East
St. Michael, MN 55376
(763) 497-1930
Notary Public
day of
of HSB
3
Agenda Page 22
Agenda Page 23
EXHIBITS
EXHIBIT A
WORK To BE COMPLETED
1. Submit televised logs and video of sanitary sewer system for City review and approval.
2. Submit record drawings for City review and approval.
3. Bituminous street patching and repairs, as required prior to final lifts.
4. Placement of final lifts of bituminous per approved plans.
5. Repair and/or replacement of damaged storm sewer.
6. Adjust castings as required for final lift of pavement.
7. Street striping and s i gnage per approved plans.
8. Grade and restore boulevards and medians within public right-of-way.
g. Finish -grading of lots, ponds and drainage ways per approved plans
10. Remove all silt fence, debris piles, and hay bales from site.
11. Remove inlet protection from all storm sewer structures and clean storm sewer as
required.
12. Construct sidewalks per approved plans.
13. Installation of landscaping and plantings per approved plans.
5
Agenda Page 24