1i The Arbors Development Contract
CITY OF
CHANHASSEN
7700 Market 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
1i
MEMORANDUM
TO:
0-
Paul Oehme, Public Works Director/City Engineer 0-
Alyson Fauske, Assistant City Engineer a=f
FROM:
DATE:
June 25, 2007
RE:
The Arbors Development Contract
BACKGROUND
On April 23, 2007 City Council approved the final plat, development contract and
construction plans for The Arbors development. After Council approval, the developer
submitted requested changes to the development contract. Staff and the City Attorney
have reviewed the changes and find them acceptable. The changes are generally
described as follows:
1. The name of the development company was corrected to read Carlson Arbors
Development LLC.
2. The final plat shall be filed no later than July 11,2007.
3. The letter of credit and cash fee amounts were revised to reflect the bid price for
the developer-installed improvements.
4. The assessment amount for City Project 06-06 was updated to reflect the final
assessment roll.
5. The assessment payment schedule was updated based on the project timing and
the assessment amount.
The Development Contract dated April 23, 2007 was not recorded, therefore these
changes appear in a new Development Contract dated June 25, 2007.
RECOMMENDATION
Staff recommends that the City Council approve The Arbors Development Contract dated
June 25,2007.
G:\ENG\PROJECTS\T-Z\The Arbors\06-25-07 DC changes. doc
The City ot Chanhassen · A growing community with clean lakes, quality schools, a chamning 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
S. TIME OF PERFORMANCE......................................................................................... SP-2
6. SECURITy.................................................................................................................... SP-2
7. NOTICE......................................................................................................................... SP-3
8. OTHER SPECIAL CONDITIONS ................................................................................ SP-3
9. GENERAL CONDITIONS............................................................................................ SP-S
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
S. 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 OTHER 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. SIGNAGE ..................................................................................................................... GC- S
20. HOUSE PADS.............................................................................................................. GC-5
21. RESPONSIBILITY FOR COSTS................................................................................. GC-S
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
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 Ti tie..................................................................................................... GC-9
U. Soil Conditions............................................................................................... GC-l 0
V. Soil Correction................................................................................................ GC-l 0
W. Haul Routes ......... .... ........ ..... ...... ...................... ............... .... .......... .......... ............ GC-l 0
X. Development Signs............ ............................... ............... .............. .......... ............ GC-I0
Y. Construction Plans............................................................................................... GC-l 0
Z. As-Built Lot Surveys.. ............................ ................ ................ .......... ............ ....... GC-ll
11
CITY OF CHANHASSEN
DEVELOPMENT CONTRACT
(Developer Installed Improvements)
The Arbors
SPECIAL PROVISIONS
AGREEMENT dated June 25, 2007 by and between the CITY OF CHANHASSEN, a
Minnesota municipal corporation (the "City"), and, Carlson Arbors Development, LLC, 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 no later than July 11, 2007.
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 GradinglRestoration
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
The above improvements shall be completed in accordance with the plans.
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 $1,096,175.87. The
amount of the security was calculated as 110% of the following:
Site Grading/Erosion Control/Restoration
Sanitary Sewer
Watermain
Storm Sewer, Drainage System, including cleaning and maintenance
Streets
Sub-total, Construction Costs
$148,454.50
$ 56,511.96
$ 52,657.16
$ 80,304.15
$252,530.50
$590,458.27
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
$ 41,332.08
$ 11,809.17
$345,924.00
$406,065.24
~ 996,523.51
of Total Costs
$1,096,175.8
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 improvements described in Paragraph 4
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 described in Paragraph 4 have been completed, (2) iron monuments for lot corners
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 required by the attached General Conditions
is provided, and (6) the improvements described in Paragraph 4 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
Carlson Arbors Development, 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 $1,096,175.87 letter of credit or escrow for the developer-installed improvements, the
$397,984.67 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 $90,458.27 = $ 16,809.17
Street Lighting Charge (for electricity): Slights @$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
First special assessment payment = $ 200,000.00
Park Dedication Fee: 18 new homes @ $5,800.00/unit = $ 104,400.00
Total Cash Fee = $ 397,984.67
SP-3
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-4
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 APPRO V AL:
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-5
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 $545,924.00 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 26, 2007 $200,000.00 $345,924.00
August 21, 2007 $200,000.00 $145,924.00
October 16, 2007 $145,924.00 $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
within West 78th Street and the portion of Dogwood Road adjacent to the final plat.
SP-6
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-7
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 or 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:
Tvpe 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-8
CITY OF CHANHASSEN
BY:
Thomas A. Furlong, Mayor
(SEAL)
AND:
Todd Gerhardt, City Manager
Carlson Arbors Development, LLC:
BY:
Bruce Carlson, Chief Manager
STATEOFMINNESOTA)
( ss.
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me this _ day of
2007, 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
2007, by Bruce Carlson, the chief manager of Carlson Arbors Development LLC, a limited liability
company under the laws of Minnesota, on behalf of the limited liability company.
NOTARY PUBLIC
DRAFTED BY:
City of Chanhassen
7700 Market Boulevard
P.O. Box 147
Chanhassen, MN 55317
(952) 227-1100
SP-9
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 .
STATE OF MINNESOTA )
( 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 PUBLIC
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
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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. S 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.
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Sa. 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 S 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, including dedicated street right of way 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
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all disturbed areas of the lot. If these improvements are not in place at the time a certificate of
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
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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 (2Yz%) 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.
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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.
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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
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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 Amplification. 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
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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.
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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 Si~ns. 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 11"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.
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Z. As-Built Lot Surveys. 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
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