1d. Approval of Reassignment of Develpment Contract, Oaks of Minnewashta, Project 94-14CITY OF 1 "
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Charles Folch, Director of Public Works
y
FROM: Dave Hempel, Assistant City Engineer r, l�
DATE: May 5, 1997
SUBJ: Approve Reassignment and Assumption of Development Contract
Oaks of Minnewashta - Project No. 94 -14
Project No. 93 -5
Heritage Development has purchased from Harstad Companies the single- family development, Oaks of
Minnewashta. Heritage Development is aware that the property is subject to a development contract
between Harstad Companies and the City of Chanhassen.
Pursuant to Item 21K in the General Conditions of the development contract for Oaks of
Minnewashta, the City Council may authorize assignment and assumption of the development
contracts. Attached is a correspondence from Mr. John Dobbs concerning the assignment and
assumption of the development contract together with the redraft of the proposed consent to transfer
the developer's responsibilities. The letter of credit has also been transferred (attached).
It is therefore recommended that the City Council approve the attached assignment and assumption of
development contract from Harstad Companies to Heritage Development.
ktm
Attachments: 1. Consent to Transfer Form
2. Letter from Mr. John Dobbs dated April 20, 1997.
3. Amended Letter of Credit No. 14749
c: John Dobbs, Heritage Development
& Ncng r roiats'cA�'amVL .am
MEMORANDUM
CONSENT TO TRANSFER
THE UNDERSIGNED HEREBY CERTIFIES TO HERITAGE DEVELOPMENT OF
MINNESOTA, INC., A MINNESOTA CORPORATION THAT:
1. The undersigned, City of Chanhassen (the "City "), is party to that certain Development
Contract, between Harstad Companies, Inc. ( "Harstad ") and the City, dated July 24, 1995,
and recorded as Carver County Recorder Document No. A188179 and T89920.
Harstad's obligations under the Development Contract are secured in part by Letter of
Credit No. 14749 issued by Builders Development & Finance, Inc.
2. The City acknowledges that Heritage Development of Minnesota, Inc. intends to purchase
and Harstad intends to sell certain property in the City of Chanhassen that is subject to the
Agreement, and Heritage Development of Minnesota, Inc. intends to assume and Harstad
intends to assign Harstad's obligations under the Agreement and the Letter of Credit.
3. The City hereby certifies that there are no current defaults under the agreement and
consents to the sale and purchase of Harstad's development, Oaks of Minnewashta.
CITY OF CHANHASSEN
Nancy K. Mancino
Its: Mavor
Drafted by:
CITY OF CHANHASSEN
690 Coulter Boulevard
P.O. Box 147
Chanhassen, MN 55317
\` cfsl \voL2=g�projectsbaksminn`consent to lransfer.doc
HERITAGE
DEVELOPMENT
I
Dave Hempel
Asst City Engineer
690 Coulter Drive
PO Box 147
Chanhassen, MN. 55317
Dear Dave:
Please remove Harstad Companies as the developer of record for the Oaks of Minnewashta and
assign the developers responsibilities for the Project to Heritage Development of Minnesota inc. I
have enclosed a letter of acceptance form Builders Development and Finance for the Letter of Credit
on the project.
Sincerely,
?JohnDobbs
M
CITY OF CRUMB
HEM
APR 2 2 X997
ENGINEERIN DEPT,
450 East County Road D
St. Paul, MN 55117
(612) 481 -0017
FAX: (61) pfide11518
Builders Development & Finance, Inc.
1055 East Wayzata Blvd., P.O. Box 637, Wayzata, MN 55391 (612) 473 -8511 TELEFAX (612) 473.1219
April 4, 1997
Mr. David Hempel
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
Re: Letter of Credit Number 14749
Oaks of Minnewashta ( "Project')
Dear Mr. Hempel:
Pursuant to your request to have Heritage Development of Minnesota, Inc. assume the
Development Contract for the aforementioned Project, please be advised that the
aforementioned Irrevocable Letter of Credit is amended as follows:
1. The Developer has been changed to Heritage Development of
Minnesota, Inc.
2. All other terms and conditions remain the same.
Very truly yours,
BUILDERS DEVELOPMENT & FINANCE, INC.
By
Its 02<S -r
a CHAN IRA SEA
P t? ti 1997
E DEPT.