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1b-2 The Arbors: Approve DC and Plans & Specs CITY OF CHANHASSEN 7700 Markel Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952,227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227,1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 1591 Park Road Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chanhassen.mn.us 1b-~ MEMORANDUM <,/:0, TO: Paul Oehme, Director of Public Works/City Engineer . \ r Alyson Fauske, Assistant City Engineer Off offi' FROM: DATE: April 23, 2007 SUBJECT: Approve Development Contract and Construction Plans and Specifications for The Arbors - Project No., 07 -05 (Simple Majority Vote Required) The attached development contract incorporates the conditions of approval for the final plat and construction plans and specifications. A $1,684,628.94 financial security is required to guarantee compliance with the terms of the development contract relating to the installation of public streets and utilities, one-year of public street light operating costs, engineering, surveying, inspection, landscaping and payment of speCial assessments. The cash fees for this project total $401,471.45. No City funds are needed as part of this private development project. The applicant has also submitted detailed construction plans and specifications for staff review and City Council approval. Staff has reviewed the plans and specifications and finds the plans still need some minor modifications. Staff requests that the City Council grant staff the flexibility to administratively approve the plans after working with the applicant's engineer to modify the plans accordingly. Staff recommends that the construction plans and specifications for The Arbors dated March 21,2007, prepared by Otto Associates and the development contract dated April 23, 2007 be approved conditioned upon the following: 1. The applicant shall enter into the development contract and supply the with a cash escrow or letter of credit for $1,684,628.94 and pay a cash fee of $401,471.45. 2. The applicant's engineer shall work with City staff in revising the construction pla.ns to meet City standards. Attachments: 1. 2. Development Contract dated April 23,2007. Construction plans and specifications are available for review in the Engineering Department. c: Otto Associates G:\ENG\PROJECTS\T-Z\The Arbors\04-23-07 approve dC.doc The City 01 Chanhassen · A growing community with clean lakes, quality schools, a Charming downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play. CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA The Arbors DEVELOPMENT CONTRACT (Developer Installed Improvements) TABLE OF CONTENTS SPECIAL PROVISIONS PAGE 1. REQUEST FOR PLAT APPROVAL.. .......................................................................... SP-l 2. CONDITIONS OF PLAT APPROVAL ........................................................................SP-l 3. DEVELOPMENT PLANS............................................................................................ SP-l 4. IMPROVEMENTS........................................................................................................ SP-2 5. TIME OF PERFORMANCE ......................................................................................... SP-2 6. SECURITY.. ...... ................ ...... .......... .... ...... .... .................................. .................... ........ SP-2 7. NOTICE................................................. ....... ........ ......................................................... SP-3 8. OTIIER SPECIAL CONDITIONS........ ........................................................................ SP-3 9. GENERAL CONDITIONS.................... ........................................................................ SP-5 GENERAL CONDITIONS 1. RIGHT TO PROCEED...................................... ........................................................... GC-l 2. PHASED DEVELOPMENT......................................................................................... GC-l 3. PRELIMINARY PLAT STATUS ................................................................................GC-l 4. CHANGES IN OFFICIAL CONTROLS ......................................................................GC-l 5. IMPROVEMENTS ............ .................... ....................................................................... GC-l 6. IRON MONUMENTS....... ........................................................................................... GC-2 7. LICENSE...................................................................................................................... GC- 2 8. SITE EROSION AND SEDIMENT CONTROL .........................................................GC-2 8A. EROSION CONTROL DURING CONSTRUCTION OF A DWELLING OR OTIIER BUILDING................................................................................... GC- 2 9. CLEAN UP ........................ ........................................................................................... GC-3 10. ACCEPTANCE AND OWNERSHIP OF IMPROVEMENTS ....................................GC-3 11. CLAIMS...................... .... ... ........ .... .... ..... ....... .... .... ...... .......... .......... ...... ....................... GC-3 12. PARK DEDICATION ....... ...... ......................... ............................................................ GC-3 13. LANDSCAPING .... .... .... ... ............ .... ........ ........ .... ...... .................................... ........ ..... GC-3 14. WARRANTy.................... ........................................................................................... GC-4 15. LOT PLANS...................... ........................................................................................... GC-4 16. EXISTING ASSESSMENTS ........ ............................................................................... GC-4 17 . HOOK-UP CHARGES................................................................................................. GC-4 18. PUBLIC STREET LIGHTING............ ......................................................................... GC-4 19. SIGN AGE..................................................................................................................... GC- 5 20. HOUSE PADS ........................... .......... ......................................................................... GC-5 21. RESPONSIBILITY FOR COSTS........ ......................................................................... GC-5 22. DEVELOPER'S DEFAULT...... .......... .................... ..................................................... GC-6 22. MISCELLANEOUS A. Construction Trailers............... ......................................................................... GC-6 B. Postal Service................. .......... ......................................................................... GC-7 C. Third Parties..... ........................ .................... ..................................................... GC-7 D. Breach of Contract.. ....... .... ..... .... ....... ......... ..... .......... .................................. ..... GC-7 1. E. Severability.................................................. ..................................................... GC-7 F. Building Permits.......................................... ..................................................... GC-7 G. Waivers/Amendments.. .... .......... ...... .... .... .... ...... .................................... .... ... .... GC-7 H. Release ..... .... .... .... ............ .... ..... ........... .... .... ...... ...... ................ .............. .... .... ... GC-7 I. Insurance .. .... .... .... ...... ...... .... .... ................ .... ............ .......... ............................ ... GC-7 J. Remedies.................................. ......................................................................... GC-8 K. Assignability..................................................................................................... GC-8 L. Construction Hours ........ .................... .... ...................................................... ..... GC-8 M. Noise Amplification .......................................................................................... GC-8 N. Access .. ...... .... .... .... ............ ..... ................... ........................................ ............... GC-8 O. Street Maintenance. ........................................................................................... GC-8 P. Storm Sewer Maintenance................................................................................ GC-9 Q. Soil Treatment Systems........... ......................................................................... GC-9 R. Variances........................................................................................................... GC-9 S. Compliance with Laws, Ordinances, and Regulations......................................GC-9 T. Proof of Title..................................................................................................... GC-9 U. Soil Conditions '...... ......................................................................................... GC-l 0 V. Soil Correction....... ......................................................................................... GC-l 0 W. Haul Routes. ..... .... ............ .............. .... .... .... ........... ..... ....... ........... ...... .... .... .... ..... GC-I0 X. Development Signs.............................................................................................. GC-l 0 Y. Construction Plans.. .............. ............................................................................... GC-l 0 Z. As-Built Lot Surveys ........................................................................................... GC-ll 1.1. CITY OF CHANHASSEN DEVELOPMENT CONTRACT (Developer Installed Improvements) The Arbors SPECIAL PROVISIONS AGREEMENT dated April 23, 2007 by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation (the "City"), and, Arbors Development, a limited liability company (the "Developer"). 1. Request for Plat Approval. The Developer has asked the City to approve a plat for The Arbors (referred to in this Contract as the "plat"). The land is legally described on the attached Exhibit "A". 2. Conditions of Plat Approval. The City hereby approves the plat on condition that the Developer enter into this Contract, furnish the security required by it, and record the plat with the County Recorder or Registrar of Titles within 30 days after the City Council approves the plat. 3. Development Plans. The plat shall be developed in accordance with the following plans. The plans shall not be attached to this Contract. With the exception of Plan A, the plans may be prepared, subject to City approval, after entering the Contract, but before commencement of any work in the plat. If the plans vary from the written terms of this Contract, the written terms shall control. The plans are: Plan A: Final plat approved April 23, 2007, prepared by Otto Associates. Plan B: Grading, Drainage and Erosion Control Plan dated March 21, 2007, prepared by Otto Associates. Plan C: Plans and Specifications for Improvements dated March 21, 2007, prepared by Otto Associates. Plan D: Landscape Plan dated March 21, 2007, prepared by Otto Associates. SP-l 4. Improvements. The Developer shall install and pay for the following: A. Sanitary Sewer System B. Water System C. Storm Water Drainage System D. Streets E. Concrete Curb and Gutter F. Street Lights G. Site Grading/Restoration H. Underground Utilities (e.g. gas, electric, telephone, CATV) I. Setting of Lot and Block Monuments J. Surveying and Staking K. Landscaping L. Erosion Control 5. Time of Performance. The Developer shall install all required improvements except for the wear course on public streets by November 15, 2007. The Developer may, however, request an extension of time from the City Engineer. If an extension is granted, it shall be conditioned upon updating the security posted by the Developer to reflect cost increases and the extended completion date. 6. Security. To guarantee compliance with the terms of this Contract, payment of special assessments, payment of the costs of all public improvements, and construction of all public improvements, the Developer shall furnish the City with a letter of credit in the form attached hereto, from a bank acceptable to the City, or cash escrow ("security") for $1,684,628.94. The amount of the security was calculated as 110% of the following: Sub-total, Construction Costs $171,143.75 $ 67,311.25 $ 67,965.00 $ 92,938.00 $365,439.50 $764,797.50 Site Grading/Erosion ControllRestoration Sanitary Sewer Watermain Storm Sewer, Drainage System, including cleaning and maintenance Streets Street lights and signs (5 lights @ $1,200 + 4 signs @ $250) Engineering, surveying, and inspection (7% of construction costs) Landscaping (2% of construction costs) Special assessments Sub-total, Other Costs Total Costs $ 7,000.00 $ 53,535.83 $ 15,295.95 $690,851.58 $766,683.36 $1.531.480.86 $1,684,628.9~] 11110% of Total Costs SP-2 This breakdown is for historical reference; it is not a restriction on the use of the security. The security shall be subject to the approval of the City. The City may draw down the security, without notice, for any violation of the terms of this Contract. If the required public improvements are not completed at least thirty (30) days prior to the expiration of the security, the City may also draw it down. If the security is drawn down, the draw shall be used to cure the default. With City approval, the security may be reduced from time to time as financial obligations are paid, but in no case shall the security be reduced to a point less than 10% of the original amount until (1) all improvements have been completed, (2) iron monuments for lot comers have been installed, (3) all financial obligations to the City satisfied, (4) the required "record" plans have been received by the City, (5) a warranty security is provided, and (6) the public improvements are accepted by the City. 7. Notice. Required notices to the Developer shall be in writing, and shall be either hand delivered to the Developer, its employees or agents, or mailed to the Developer by registered mail at the following address: Bruce Carlson The Arbors, LLC 1440 Bavarian Shores Drive Chaska, MN 55318 Phone: 952-200-3317 Notices to the City shall be in writing and shall be either hand delivered to the City Manager, or mailed to the City by certified mail in care of the City Manager at the following address: Chanhassen City Hall, 7700 Market Boulevard, P.O. Box 147, Chanhassen, Minnesota 55317, Telephone (952) 227-1100. 8. Other Special Conditions. A. SECURITIES AND FEES A $1,684,628.94 letter of credit or escrow for the developer-installed improvements, the $401,471.45 cash administration fee and the fully-executed development contract must be submitted and shall be submitted prior to scheduling a pre-construction meeting. The cash fee was calculated as follows: Administration Fee: 3% of $500,000 + 2% of $264,797.50 = $ 20,295.95 Street Lighting Charge (for electricity): 5 lights @$300.00/light = $ 1,500.00 Attorney fee for review and recording of final plat and documents = $ 450.00 GIS Fee: $25/plat + $lO/parcel for 23 parcels = $ 255.00 Surface Water Management Fee = $ 74,570.50 Partial payment of assessment = $ 200,000.00 Park Dedication Fee: 18 new homes @ $5,800.00/unit = $ 104,400.00 Total Cash Fee = $ 401,471.45 SP-2 B. PLANNING DEPARTMENT CONDITIONS OF APPROV AL: 1. The house design, location and driveway configuration for Lot 2, Block 1, must be revised to maintain the required wetland setback. 2. The developer shall pay park fees of $104,400.00 at the time of final plat recording. 3. The developer shall provide in both their sales material and within the association covenants full disclosure about the Minnesota Landscape Arboretum location, use of electric fence, research operations, and agricultural operations including the spraying of trees. 4. The developer shall install signage on Lots 4 and 5, Block 2, and Outlots Band C warning of the electrical fence on the Minnesota Landscape Arboretum property. 5. The preliminary plat approval permitting three lots on Lot 1, Block 3, The Arbors, shall remain in force through April 23, 2012. Thereafter, future subdivision of the parcel must comply with the zoning requirements in place at the time of final plat approval. C. FIRE MARSHAL CONDITIONS OF APPROVAL: 1. A lO-foot clear space must be maintained around fire hydrants, i.e., street lamps, trees, shrubs, bushes, Xcel Energy, Qwest, cable TV and transformer boxes. This is to ensure that fire hydrants can be quickly located and safely operated by firefighters. Pursuant to Chanhassen City Ordinance #9-1.Fire apparatus access roads and water supply for fire protection is required to be installed. Such protection shall be installed and made serviceable prior to and during the time of construction except when approved alternate methods of protection are provided. 2. Temporary street signs shall be installed at street intersections once construction of the new roadway allows passage of vehicles. Pursuant to 2002 Minnesota Fire Code Section 501.4. 3. Fire apparatus access roads shall be designed and maintained to support the imposed load of fire apparatus and shall be serviced so as to provide all-weather driving capabilities. Pursuant to Minnesota State Fire Code Section 503.2.3. 4. The cul-de-sac shall be labeled Beacon Court. 5. No burning permits shall be issued for trees to be removed. Trees and shrubs must either be removed from site or chipped. SP-3 D. BUILDING OFFICIAL CONDITIONS OF APPROVAL: 1. A final grading plan and soils report must be submitted to the Inspections Division before building permits will be issued. 2. Demolition permits must be obtained prior to demolishing any structures on the site. 3. Existing wells and on-site sewage treatment systems on the site must be abandoned in accordance with State Law and City Code. 4. Retaining walls more than four feet high must be designed by a professional engineer and a building permit must be obtained prior to construction. 5. Separate sewer and water services must be provided each lot. E. CITY FORESTER CONDITIONS OF APPROVAL: 1. Tree preservation fence shall be installed at the edge of the grading limits prior to any construction. Fencing shall be in place and maintained until all construction is completed. 2. Any trees removed in excess of proposed tree preservation plans, dated 10/31/06, will be replaced at a ratio of 2: 1 diameter inches. 3. A minimum of two trees shall be planted on each lot. 4. Tree conservation easements shall be located on Lots 1-3,5,8-9, Block 1. F. CITY ENGINEER CONDITIONS OF APPROVAL: 1. The grading on Lots 12, 13 and 14, Block 1 must be modified so that the backyard grade is minimum 2%. 2. The proposed major contours must be a different line weight or type. 3. Final plat approval shall be contingent upon the approval and construction of Project 06- 06. 4. Watermain must be minimum 18 inches above or below the sanitary sewer. 5. Access for Lots 2 and 3, Block 3 will be addressed and constructed when those lots are final platted. SP-4 6. The gravel drive and turnaround will require an Encroachment Agreement which would be filed with the final plat. The drive and turnaround will be removed when Dogwood Road is extended in the future. 7. The eastern line of the Dogwood Road right-of-way south of West 78th Street must align with the existing eastern right-of-way of Crimson Bay Road. 8. The developer shall provide a financial security for the proposed assessments with the development contract. 9. The City will construct Dogwood Road/Tanadoona Drive Street and Utility Improvement Project, city project 06-06 that will serve the Plat. Property within the plat is hereby specially assessed $890,851.58 for the project. The assessment must be paid in accordance with the following payment schedule, without deferment: Payment Remaining Payment due date Amount Balance (minimum) of Assessment June 12, 2007 $200,000.00 $690,851.58 August 7, 2007 $200,000.00 $490,851.58 October 2, 2007 $200,000.00 $290,851.58 November 27,2007 $200,000.00 $90,851.58 November 30, 2007 $91,851.58 $0.00 The assessment shall be deemed adopted on the date this agreement is approved by the city counciL The Developer and fee owner waive any and all procedural and substantive objections to the installation of the public improvement and the special assessment, including but not limited to hearing requirements and any claim that the assessment exceeds the benefit to the property; and further waive any appeal rights otherwise available pursuant to M.S.A. S 429.08. 10. By signing the development contract, the developer and fee owner waive any appeal rights for City Project 06-06 otherwise available pursuant to M.S.A. S 429.081. 11. The septic system for the existing home on Lot 4, Block 1 may remain until the sanitary sewer has been installed and tested. 12. A building permit for Lot 3, Block 1 will not be issued until the septic system has been properly removed and abandoned. 13. The developer may obtain up to three model home permits before the streets and utilities are installed. Certificates of Occupancy for these permits will not be issued until the utilities are installed and pass the required testing, and the first lift of asphalt is installed SP-5 within West 78th Street and the portion of Dogwood Road adjacent to the final plat. 14. The location of the model homes is subject to the Building Official and Fire Marshal's approval. G. WATER RESOURCES COORDINATOR CONDITIONS OF APPROVAL: 1. Both wetlands on site are classified as Natural wetlands; therefore, a wetland buffer with a minimum width of 20 feet shall be maintained around the wetlands. Wetland buffer areas shall be preserved, surveyed and staked in accordance with the City's wetland ordinance. The applicant shall install wetland buffer edge signs, under the direction of City staff, before construction begins and shall pay the City $20 per sign. All structures shall maintain a setback of at least 40 feet from the wetland buffer edge. 2. The proposed conservation easement shall be revised to envelop Wetland 2 and the required wetland buffer. 3. A NPDES Phase II Construction Site Storm Water Permit will be required from the Minnesota Pollution Control Agency (MPCA) for this site. A Storm Water Pollution Prevention Plan (SWPPP) will be required in conjunction with this application. The SWPPP shall be provided to the City so it can be reviewed by the Carver Soil and Water Conservation District prior to the preconstruction meeting for the project. 4. The proposed storm water pond shall be constructed prior to disturbing upgradient areas and used as a temporary sediment basin during mass grading. Diversion berms/ditches may be needed to divert water to the pond and a temporary pond outlet shall be provided. The outlet could be a temporary perforated standpipe and rock cone. The plans shall be revised to include a detail for the temporary pond outlet. 5. It shall be noted on the SWPPP that all areas that will not be permanently stabilized within the timeframe required by the NPDES permit shall be temporary mulched and seeded. A note shall be included in the dewatering section of the SWPPP that states: "If construction of the proposed temporary/permanent sediment pond is not completed prior to dewatering, the City's on-site construction observer must approve proposed dewatering methods prior to beginning dewatering." 6. The plans shall be revised to incorporate Chanhassen's standard details for erosion and sediment control, including 5302A and 5302D. Proposed erosion and sediment controls for individual lots shall include perimeter controls (silt fence), rock driveways, street sweeping, inlet control and temporary mulch after final grade and prior to issuing the Certificate of Occupancy. 7. All silt fence that is not laid parallel to the contours shall have J Hooks installed every 50- 75 feet. This shall be noted on the plans and discussed at the preconstruction meeting. SP-6 8. Energy dissipation shall be provided at the inlet to the proposed pond and at the end of the discharge pipe that outlets to the wetland within 24 hours of pipe installation. The discharge location for the outlet of the proposed pond shall be evaluated to ensure that the proposed discharge will not cause erosion issues. Reinforced erosion control matting may be required. 9. A stable emergency overflow (EOF) for the stormwater pond shall be provided. The EOF could consist of riprap and geotextile fabric or a turf reinforcement mat (a permanent erosion control blanket). A typical detail shall be included in the plan. The overland route from the EOF to Lake Minnewashta shall be shown on the plans and shall be encumbered by a drainage and utility easement. 10. Erosion control blanket shall be installed on all slopes greater than Of equal to 3:1. All exposed soil areas shall have temporary erosion protection or permanent cover year round, according to the following table of slopes and time frames: Type of Slope Steeper than 3: 1 10:1 to 3:1 Flatter than 10: 1 Time 7 days 14 days 21 days (Maximum time an area can remain open when the area is not actively being worked.) These areas include constructed storm water management pond side slopes, and any exposed soil areas with a positive slope to a storm water conveyance system, such as a curb and gutter system, storm sewer inlet, temporary or permanent drainage ditch or other natural or man made systems that discharge to a surface water. 11. Inlet protection may be needed prior to installation of the castings for the curbside catch basins. In that case, all storm sewer inlets shall be protected by at least fabric draped over the manhole with a steel plate holding the fabric in place. 12. At this time, the estimated total SWMP fee, due payable to the City at the time of final plat recording, is $74,570.50. 13. The applicant shall apply for and obtain permits from the appropriate regulatory agencies (e.g., Minnesota Pollution Control Agency, Minnesota Department of Natural Resources (for dewatering)) and comply with their conditions of approval. 9. General Conditions. The general conditions of this Contract are attached as Exhibit "B" and incorporated herein. SP-7 CITY OF CHANHASSEN BY: Thomas A. Furlong, Mayor (SEAL) AND: Todd Gerhardt, City Manager The Arbors, LLC: BY: Bruce Carlson, President STATE OF MINNESOTA) ( ss. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this _ day of 2005, by Thomas A. Furlong, Mayor, and by Todd Gerhardt, City Manager, of the City of Chanhassen, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City CounciL NOTARY PUBLIC STATE OF MINNESOTA) ( ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of 2005, by Bruce Carlson of The Arbors, a limited liability company, on behalf of the company. NOTARY PUBLIC DRAFTED BY: City of Chanhassen 7700 Market Boulevard P.O. Box 147 Chanhassen, MN 55317 (952) 227-1100 SP-8 EXHIBIT "A" TO DEVELOPMENT CONTRACT LEGAL DESCRIPTION OF SUBJECT PROPERTY: Lot 1, Block 1, and vacated Zimmerman Road, all in Zimmerman Farm First Addition, Carver, County, Minnesota, according to the record plat thereof. AND: Lot 2, Block 1, and vacated Zimmerman Road, all in Zimmerman Farm First Addition, Carver, County, Minnesota, according to the record plat thereof. MORTGAGE HOLDER CONSENT TO DEVELOPMENT CONTRACT which holds a mortgage on the subject property, the development of which is governed by the foregoing Development Contract, agrees that the Development Contract shall remain in full force and effect even if it forecloses on its mortgage. Dated this _ day of ,20 . STATEOFMINNESOTA) ( ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of 20_, by NOTARY PUBLIC DRAFTED BY: City of Chanhassen 7700 Market Boulevard P.O. Box 147 Chanhassen, MN 55317 (952) 227-1100 FEE OWNER CONSENT TO DEVELOPMENT CONTRACT fee owners of all or part of the subject property, the development of which is governed by the foregoing Development Contract, affirm and consent to the provisions thereof and agree to be bound by the provisions as the same may apply to that portion of the subject property owned by them. Dated this _ day of ,20 . STATE OF MINNESOTA) ( ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of 20_, by NOTARY PUBUC DRAFTED BY: City of Chanhassen 7700 Market Boulevard P.O. Box 147 Chanhassen, MN 55317 (952) 227-1100 IRREVOCABLE LETTER OF CREDIT No. Date: TO: City of Chanhassen 7700 Market Boulevard, Box 147 Chanhassen, Minnesota 55317 Dear Sir or Madam: We hereby issue, for the account of Irrevocable Letter of Credit in the amount of $ on the undersigned bank. (Name of Developer) and in your favor, our , available to you by your draft drawn on sight The draft must: a) Bear the clause, "Drawn under Letter of Credit No. 2 , of (Name of Bank) "; , dated b) Be signed by the Mayor or City Manager of the City of Chanhassen. c) Be presented for payment at 2 (Address of Bank) , on or before 4:00 p.rn. on November 30, This Letter of Credit shall automatically renew for successive one-year terms unless, at least forty- five (45) days prior to the next annual renewal date (which shall be November 30 of each year), the Bank delivers written notice to the Chanhassen City Manager that it intends to modify the terms of, or cancel, this Letter of Credit. Written notice is effective if sent by certified mail, postage prepaid, and deposited in the U.S. Mail, at least forty-five (45) days prior to the next annual renewal date addressed as follows: Chanhassen City Manager, Chanhassen City Hall, 7700 Market Boulevard, P.O. Box 147, Chanhassen, MN 55317, and is actually received by the City Manager at least thirty (30) days prior to the renewal date. This Letter of Credit sets forth in full our understanding which shall not in any way be modified, amended, amplified, or limited by reference to any document, instrument, or agreement, whether or not referred to herein. This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be made under this Letter of Credit. This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce Publication No. 500. We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored upon presentation. BY: Its CITY OF CHANHASSEN DEVELOPMENT CONTRACT (Developer Installed Improvements) EXHIBIT "B" GENERAL CONDITIONS 1. Right to Proceed. Within the plat or land to be platted, the Developer may not grade or otherwise disturb the earth, remove trees, construct sewer lines, water lines, streets, utilities, public or private improvements, or any buildings until all the following conditions have been satisfied: 1) this agreement has been fully executed by both parties and filed with the City Clerk, 2) the necessary security and fees have been received by the City, 3) the plat has been recorded with the County Recorder's Office or Registrar of Title's Office of the County where the plat is located, and 4) the City Engineer has issued a letter that the foregoing conditions have been satisfied and then the Developer may proceed. 2. Phased Development. If the plat is a phase of a multiphased preliminary plat, the City may refuse to approve final plats of subsequent phases if the Developer has breached this Contract and the breach has not been remedied. Development of subsequent phases may not proceed until Development Contracts for such phases are approved by the City. Park charges and area charges for sewer and water referred to in this Contract are not being imposed on outlots, if any, in the plat that are designated in an approved preliminary plat for future subdivision into lots and blocks. Such charges will be calculated and imposed when the outlots are final platted into lots and blocks. 3. Preliminary Plat Status. If the plat is a phase of a multi-phased preliminary plat, the preliminary plat approval for all phases not final platted shall lapse and be void unless final platted into lots and blocks, not outlots, within two (2) years after preliminary plat approvaL 4. Changes in Official Controls. For two (2) years from the date of this Contract, no amendments to the City's Comprehensive Plan, except an amendment placing the plat in the current urban service area, or official controls shall apply to or affect the use, development density, lot size, lot layout or dedications of the approved plat unless required by state or federal law or agreed to in writing by the City and the Developer. Thereafter, notwithstanding anything in this Contract to the contrary, to the full extent permitted by state law the City may require compliance with any amendments to the City's Comprehensive Plan, official controls, platting or dedication requirements enacted after the date of this Contract. 5. Improvements. The improvements specified in the Special Provisions of this Contract shall be installed in accordance with City standards, ordinances, and plans and specifications which have been prepared and signed by a competent registered professional GC-l engineer furnished to the City and approved by the City Engineer. The Developer shall obtain all necessary permits from the Metropolitan Council Environmental Services and other pertinent agencies before proceeding with construction. The City will, at the Developer's expense, have one or more construction inspectors and a soil engineer inspect the work on a full or part-time basis. The Developer shall also provide a qualified inspector to perform site inspections on a daily basis. Inspector qualifications shall be submitted in writing to the City Engineer. The Developer shall instruct its project engineer/inspector to respond to questions from the City Inspector(s) and to make periodic site visits to satisfy that the construction is being performed to an acceptable level of quality in accordance with the engineer's design. The Developer or his engineer shall schedule a preconstruction meeting at a mutually agreeable time at the City Council chambers with all parties concerned, including the City staff, to review the program for the construction work. 6. Iron Monuments. Before the security for the completion of utilities is released, all monuments must be correctly placed in the ground in accordance with Minn. Stat. ~ 505.02, Subd. 1. The Developer's surveyor shall submit a written notice to the City certifying that the monuments have been installed. 7. License. The Developer hereby grants the City, its agents, employees, officers and contractors a license to enter the plat to perform all work and inspections deemed appropriate by the City in conjunction with plat development. 8. Site Erosion and Sediment Control. Before the site is rough graded, and before any utility construction is commenced or building permits are issued, the erosion and sediment control plan, Plan B, shall be implemented, inspected, and approved by the City. The City may impose additional erosion and sediment control requirements if they would be beneficial. All areas disturbed by the excavation and backfilling operations shall be reseeded forthwith after the completion of the work in that area. Except as otherwise provided in the erosion and sediment control plan, seed shall be certified seed to provide a temporary ground cover as rapidly as possible. All seeded areas shall be fertilized, mulched, and disc anchored as necessary for seed retention. The parties recognize that time is of the essence in controlling erosion and sediment transport. If the Developer does not comply with the erosion and sediment control plan and schedule of supplementary instructions received from the City, the City may take such action as it deems appropriate to control erosion and sediment transport at the Developer's expense. The City will endeavor to notify the Developer in advance of any proposed action, but failure of the City to do so will not affect the Developer's and City's rights or obligations hereunder. No development will be allowed and no building permits will be issued unless the plat is in full compliance with the erosion and sediment control requirements. Erosion and sediment control needs to be maintained until vegetative cover has been restored, even if construction has been completed and accepted. After the site has been stabilized to where, in the opinion of the City, there is no longer a need for erosion and sediment control, the City will authorize the removal of the erosion and sediment control, i.e. hay bales and silt fence. The Developer shall remove and dispose of the erosion and sediment control measures. GC-2 8a. Erosion Control During Construction of a Dwelling or Other Building. Before a building permit is issued for construction of a dwelling or other building on a lot, a $500.00 cash escrow or letter of credit per lot shall also be furnished to the City to guarantee compliance with City Code ~ 7-22. 9. Clean up. The Developer shall maintain a neat and orderly work site and shall daily clean, on and off site, dirt and debris, including blowables, from streets and the surrounding area that has resulted from construction work by the Developer, its agents or assigns. 10. Acceptance and Ownership of Improvements. Upon completion and acceptance by the City of the work and construction required by this Contract, the improvements lying within public easements shall become City property. After completion of the improvements, a representative of the contractor, and a representative of the Developer's engineer will make a final inspection of the work with the City Engineer. Before the City accepts the improvements, the City Engineer shall be satisfied that all work is satisfactorily completed in accordance with the approved plans and specifications and the Developer and his engineer shall submit a written statement to the City Engineer certifying that the project has been completed in accordance with the approved plans and specifications. The appropriate contractor waivers shall also be provided. Final acceptance of the public improvements shall be by City Council resolution. 11. Claims. In the event that the City receives claims from laborers, materialmen, or others that work required by this Contract has been performed, the sums due them have not been paid, and the laborers, materialmen, or others are seeking payment out of the financial guarantees posted with the City, and if the claims are not resolved at least ninety (90) days before the security required by this Contract will expire, the Developer hereby authorizes the City to commence an Interpleader action pursuant to Rule 22, Minnesota Rules of Civil Procedure for the District Courts, to draw upon the letters of credit in an amount up to 125% of the claim(s) and deposit the funds in compliance with the Rule, and upon such deposit, the Developer shall release, discharge, and dismiss the City from any further proceedings as it pertains to the letters of credit deposited with the District Court, except that the Court shall retain jurisdiction to determine attorneys' fees. 12. Park Dedication. The Developer shall pay full park dedication fees in conjunction with the installation of the plat improvements. The park dedication fees shall be the current amount in force at the time of final platting pursuant to Chanhassen City Ordinances and City Council resolutions. 13. Landscaping. Landscaping shall be installed in accordance with Plan D. Unless otherwise approved by the City, trees not listed in the City's approved tree list are prohibited. The minimum tree size shall be two and one-half (2112) inches caliper, either bare root in season, or balled and burlapped. The trees may not be planted in the boulevard (area between curb and property line). In addition to any sod required as a part of the erosion and sediment control plan, Plan B, the Developer or lot purchaser shall sod the boulevard area and all drainage ways on each lot utilizing a minimum of four (4) inches of topsoil as a base. Seed or sod shall also be placed on all disturbed areas of the lot. If these improvements are not in place at the time a certificate of GC-3 occupancy is requested, a financial guarantee of $750.00 in the form of cash or letter of credit shall be provided to the City. These conditions must then be complied with within two (2) months after the certificate of occupancy issued, except that if the certificate of occupancy is issued between October 1 through May 1 these conditions must be complied with by the following July 1st. Upon expiration of the time period, inspections will be conducted by City staff to verify satisfactory completion of all conditions. City staff will conduct inspections of incomplete items with a $50.00 inspection fee deducted from the escrow fund for each inspection. After satisfactory inspection, the financial guarantee shall be returned. If the requirements are not satisfied, the City may use the security to satisfy the requirements. The City may also use the escrowed funds for maintenance of erosion control pursuant to City Code Section 7-22 or to satisfy any other requirements of this Contract or of City ordinances. These requirements supplement, but do not replace, specific landscaping conditions that may have been required by the City Council for project approval. 14. Warranty. The Developer warrants all improvements required to be constructed by it pursuant to this Contract against poor material and faulty workmanship. The Developer shall submit either 1) a warranty/maintenance bond for 100% of the cost of the improvement, or 2) a letter of credit for twenty-five percent (25%) of the amount of the original cost of the improvements. A. The required warranty period for materials and workmanship for the utility contractor installing public sewer and water mains shall be two (2) years from the date of final written City acceptance of the work. B. The required warranty period for all work relating to street construction, including concrete curb and gutter, sidewalks and trails, materials and equipment shall be subject to two (2) years from the date of final written acceptance. C. The required warranty period for sod, trees, and landscaping is one full growing season following acceptance by the City. 15. Lot Plans. Prior to the issuance of building permits, an acceptable Grading, Drainage, Erosion Control including silt fences, and Tree Removal Plan shall be submitted for each lot for review and approval by the City Engineer. Each plan shall assure that drainage is maintained away from buildings and that tree removal is consistent with development plans and City Ordinance. 16. Existing Assessments. Any existing assessments against the plat will be re-spread against the plat in accordance with City standards. 17. Hook-up Charges. The Developer also acknowledges overall sanitary sewer and water trunk availability to the site and the hook-up charges established by the City as reasonable compensation for oversizing costs previously incurred, as well as, long-term maintenance. Said hook-up charges are collectible at time of building permit unless a written request is made to assess GC-4 the costs over a four year term at the rates in effect at time of application. If paid with the building permit, the party applying for the building permit is responsible for payment of these fees. 18. Public Street Lighting. The Developer shall have installed and pay for public street lights in accordance with City standards. The public street lights shall be accepted for City ownership and maintenance at the same time that the public street is accepted for ownership and maintenance. A plan shall be submitted for the City Engineer's approval prior to the installation. Before the City signs the final plat, the Developer shall pay the City a fee of $300.00 for each street light installed in the plat. The fee shall be used by the City for furnishing electricity and maintaining each public street light for twenty (20) months. 19. Signage. All street signs, traffic signs, and wetland monumentation required by the City as a part of the plat shall be furnished and installed by the City at the sole expense of the Developer. 20. House Pads. The Developer shall promptly furnish the City "as-built" plans indicating the amount, type and limits of fill on any house pad location. 21. Responsibility for Costs. A. The Developer shall pay an administrative fee in conjunction with the installation of the plat improvements. This fee is to cover the cost of City Staff time and overhead for items such as review of construction documents, preparation of the Development Contract, monitoring construction progress, processing pay requests, processing security reductions, and final acceptance of improvements. This fee does not cover the City's cost for construction inspections. The fee shall be calculated as follows: i) if the cost of the construction of public improvements is less than $500,000, three percent (3%) of construction costs; ii) if the cost of the construction of public improvements is between $500,000 and $1,000,000, three percent (3%) of construction costs for the first $500,000 and two percent (2%) of construction costs over $500,000; iii) if the cost of the construction of public improvements is over $1,000,000, two and one-half percent (2Y2%) of construction costs for the first $1,000,000 and one and one-half percent (1 Yz%) of construction costs over $1,000,000. Before the City signs the final plat, the Developer shall deposit with the City a fee based upon construction estimates. After construction is completed, the final fee shall be determined based upon actual construction costs. The cost of public improvements is defined in paragraph 6 of the Special Provisions. GC-5 B. In addition to the administrative fee, the Developer shall reimburse the City for all costs incurred by the City for providing construction and erosion and sediment control inspections. This cost will be periodically billed directly to the Developer based on the actual progress of the construction. Payment shall be due in accordance with Article 21E of this Agreement. C. The Developer shall hold the City and its officers and employees harmless from claims made by itself and third parties for damages sustained or costs incurred resulting from plat approval and development. The Developer shall indemnify the City and its officers and employees for all costs, damages, or expenses which the City may payor incur in consequence of such claims, including attorneys' fees. D. In addition to the administrative fee, the Developer shall reimburse the City for costs incurred in the enforcement of this Contract, including engineering and attorneys' fees. E. The Developer shall pay in full all bills submitted to it by the City for obligations incurred under this Contract within thirty (30) days after receipt. If the bills are not paid on time, the City may halt all plat development work and construction, including but not limited to the issuance of building permits for lots which the Developer mayor may not have sold, until the bills are paid in full. Bills not paid within thirty (30) days shall accrue interest at the rate of 8% per year. F. In addition to the charges and special assessments referred to herein, other charges and special assessments may be imposed such as, but not limited to, sewer availability charges ("SAC"), City water connection charges, City sewer connection charges, and building permit fees. G. Private Utilities. The Developer shall have installed and pay for the installation of electrical, natural gas, telephone, and cable television service in conjunction with the overall development improvements. These services shall be provided in accordance with each of the respective franchise agreements held with the City. H. The developer shall pay the City a fee established by City Council resolution, to reimburse the City for the cost of updating the City's base maps, GIS data base files, and converting the plat and record drawings into an electronic format. Record drawings must be submitted within four months of final acceptance of public utilities. All digital information submitted to the City shall be in the Carver County Coordinate system. 22. Developer's Default. In the event of default by the Developer as to any of the work to be performed by it hereunder, the City may, at its option, perform the work and the Developer shall promptly reimburse the City for any expense incurred by the City, provided the Developer is first given notice of the work in default, not less than four (4) days in advance. This Contract is a license for the City to act, and it shall not be necessary for the City to seek a Court order for permission to enter the land. When the City does any such work, the City may, in addition to its other remedies, assess the cost in whole or in part. GC-6 23. Miscellaneous. A. Construction Trailers. Placement of on-site construction trailers and temporary job site offices shall be approved by the City Engineer as a part of the pre-construction meeting for installation of public improvements. Trailers shall be removed from the subject property within thirty (30) days following the acceptance of the public improvements unless otherwise approved by the City Engineer. B. Postal Service. The Developer shall provide for the maintenance of postal service in accordance with the local Postmaster's request. C. Third Parties. Third parties shall have no recourse against the City under this Contract. The City is not a guarantor of the Developer's obligations under this Contract. The City shall have no responsibility or liability to lot purchasers or others for the City's failure to enforce this Contract or for allowing deviations from it. D. Breach of Contract. Breach of the terms of this Contract by the Developer shall be grounds for denial of building permits, including lots sold to third parties. The City may also issue a stop work order halting all plat development until the breach has been cured and the City has received satisfactory assurance that the breach will not reoccur. E. Severability. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this Contract is for any reason held invalid, such decision shall not affect the validity of the remaining portion of this Contract. F. Building Permits. Building permits will not be issued in the plat until sanitary sewer, watermain, and storm sewer have been installed, tested, and accepted by the City, and the streets needed for access have been paved with a bituminous surface and the site graded and revegetated in accordance with Plan B of the development plans. G. Waivers/Amendments. The action or inaction of the City shall not constitute a waiver or amendment to the provisions of this Contract. To be binding, amendments or waivers shall be in writing, signed by the parties and approved by written resolution of the City CounciL The City's failure to promptly take legal action to enforce this Contract shall not be a waiver or release. H. Release. This Contract shall run with the land and may be recorded against the title to the property. After the Developer has completed the work required of it under this Contract, at the Developer's request the City Manager will issue a Certificate of Compliance. Prior to the issuance of such a certificate, individual lot owners may make as written request for a certificate applicable to an individual lot allowing a minimum of ten (10) days for processing. I. Insurance. Developer shall take out and maintain until six (6) months after the City has accepted the public improvements, public liability and property damage insurance covering GC-7 personal injury, including death, and claims for property damage which may arise out of Developer's work or the work of its subcontractors or by one directly or indirectly employed by any of them. Limits for bodily injury and death shall be not less than $500,000 for one person and $1,000,000 for each occurrence; limits for property damage shall be not less than $500,000 for each occurrence; or a combination single limit policy of $1,000,000 or more. The City shall be named as an additional insured on the policy, and the Developer shall file with the City a certificate evidencing coverage prior to the City signing the plat. The certificate shall provide that the City must be given ten (10) days advance written notice of the cancellation of the insurance. The certificate may not contain any disclaimer for failure to give the required notice. J. Remedies. Each right, power or remedy herein conferred upon the City is cumulative and in addition to every other right, power or remedy, expressed or implied, now or hereafter arising, available to City, at law or in equity, or under any other agreement, and each and every right, power and remedy herein set forth or otherwise so existing may be exercised from time to time as often and in such order as may be deemed expedient by the City and shall not be a waiver of the right to exercise at any time thereafter any other right, power or remedy. K. Assignability. The Developer may not assign this Contract without the written permission of the City Council. The Developer's obligation hereunder shall continue in full force and effect even if the Developer sells one or more lots, the entire plat, or any part of it. L. Construction Hours. Construction hours for required improvements under this contract shall be from 7:00 a.m. to 6:00 p.m. on weekdays, from 9:00 a.m. to 5:00 p.m. on Saturdays with no such activity allowed on Sundays or any recognized legal holidays. Under emergency conditions, this limitation may be waived by the consent of the City Engineer. Any approved work performed after dark shall be adequately illuminated. If construction occurs outside of the permitted construction hours, the Developer shall pay the following administrative penalties: First violation Second violation Third & subsequent violations $ 500.00 $ 1,000.00 All site development and construction must cease for seven (7) calendar days M. Noise Amt'lification. The use of outdoor loudspeakers, bullhorns, intercoms, and similar devices is prohibited in conjunction with the construction of homes, buildings, and the improvements required under this contract. The administrative penalty for violation of construction hours shall also apply to violation of the provisions in this paragraph. N. Access. All access to the plat prior to the City accepting the roadway improvements shall be the responsibility of the Developer regardless if the City has issued building permits or occupancy permits for lots within the plat. O. Street Maintenance. The Developer shall be responsible for all street maintenance until streets within the plat are accepted by the City. Warning signs shall be placed by GC-8 the Developer when hazards develop in streets to prevent the public from traveling on same and directing attention to detours. If streets become impassable, the City may order that such streets shall be barricaded and closed. The Developer shall maintain a smooth roadway surface and provide proper surface drainage. The Developer may request, in writing, that the City plow snow on the streets prior to final acceptance of the streets. The City shall have complete discretion to approve or reject the request. The City shall not be responsible for reshaping or damage to the street base or utilities because of snow plowing operations. The provision of City snow plowing service does not constitute final acceptance of the streets by the City. P. Storm Sewer Maintenance. The Developer shall be responsible for cleaning and maintenance of the storm sewer system (including ponds, pipes, catch basins, culverts and swales) within the plat and the adjacent off-site storm sewer system that receives storm water from the plat. The Developer shall follow all instructions it receives from the City concerning the cleaning and maintenance of the storm sewer system. The Developer's obligations under this paragraph shall end two (2) years after the public street and storm drainage improvements in the plat have been accepted by the City. Twenty percent (20%) of the storm sewer costs, shown under section 6 of the special provisions of this contract, will be held by the City for the duration of the 2-year maintenance period. Q. Soil Treatment Systems. If soil treatment systems are required, the Developer shall clearly identify in the field and protect from alteration, unless suitable alternative sites are first provided, the two soil treatment sites identified during the platting process for each lot. This shall be done prior to the issuance of a Grading Permit. Any violation/disturbance of these sites shall render them as unacceptable and replacement sites will need to be located for each violated site in order to obtain a building permit. R. Variances. By approving the plat, the Developer represents that all lots in the plat are buildable without the need for variances from the City's ordinances. S. Compliance with Laws, Ordinances, and Regulations. In the development of the plat the Developer shall comply with all laws, ordinances, and regulations of the following authorities: 1. City of Chanhassen; 2. State of Minnesota, its agencies, departments and commissions; 3. United States Army Corps of Engineers; 4. Watershed District(s); 5. Metropolitan Government, its agencies, departments and commissions. T. Proof of Title. Upon request, the Developer shall furnish the City with evidence satisfactory to the City that it has the authority of the fee owners and contract for deed purchasers to enter into this Development Contract. GC-9 U. Soil Conditions. The Developer acknowledges that the City makes no representations or warranties as to the condition of the soils on the property or its fitness for construction of the improvements or any other purpose for which the Developer may make use of such property. The Developer further agrees that it will indemnify, defend, and hold harmless the City, its governing body members, officers, and employees from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the property, unless hazardous wastes or pollutants were caused to be there by the City. V. Soil Correction. The Developer shall be responsible for soil correction work on the property. The City makes no representation to the Developer concerning the nature of suitability of soils nor the cost of correcting any unsuitable soil conditions which may exist. On lots which have no fill material a soils report from a qualified soils engineer is not required unless the City's building inspection department determines from observation that there may be a soils problem. On lots with fill material that have been mass graded as part of a multi-lot grading project, a satisfactory soils report from a qualified soils engineer shall be provided before the City issues a building permit for the lot. On lots with fill material that have been custom graded, a satisfactory soils report from a qualified soils engineer shall be provided before the City inspects the foundation for a building on the lot. W. Haul Routes. The Developer, the Developer's contractors or subcontractors must submit proposed haul routes for the import or export of soil, construction material, construction equipment or construction debris, or any other purpose. All haul routes must be approved by the City Engineer X. Development Signs. The Developer shall post a six foot by eight foot development sign in accordance with City Detail Plate No. 5313 at each entrance to the project. The sign shall be in place before construction of the required improvements commences and shall be removed when the required improvements are completed, except for the final lift of asphalt on streets. The signs shall contain the following information: project name, name of developer, developer's telephone number and designated contact person, allowed construction hours. y. Construction Plans. Upon final plat approval, the developer shall provide the City with two complete sets of full-size construction plans and four sets of 1l"xI7" reduced construction plan sets and three sets of specifications. Within four months after the completion of the utility improvements and base course pavement and before the security is released, the Developer shall supply the City with the following: (1) a complete set of reproducible Mylar as-built plans, (2) two complete full-size sets of blue line/paper as-built plans, (3) two complete sets of utility tie sheets, (4) location of buried fabric used for soil stabilization, (5) location stationing and swing ties of all utility stubs including draintile cleanouts, (6) bench mark network, (7) digital file of as-built plans in both .dxf & .tif format (the .dxf file must be tied to the current county coordinate system), (8) digital file of utility tie sheets in either .doc or .tif format, and (9) a breakdown of lineal footage of all utilities installed, including the per lineal foot bid price. The Developer is required to submit the final plat in electronic format. GC-10 Z. As-Built Lot Survevs. An as-built lot survey will be required on all lots prior to the Certificate of Occupancy being issued. The as-built lot survey must be prepared, signed, and dated by a Registered Land Surveyor. Sod and the bituminous driveways must be installed before the as-built survey is completed. If the weather conditions at the time of the as-built are not conducive to paving the driveway and/or installing sod, a temporary Certificate of Occupancy may be issued and the as-built escrow withheld until all work is complete. Rev. 3/31/06 GC-ll