1a. Approve Assignment & Assumption of Development Contract-Lake Susan Hills West 9th AdditionCITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 0 FAX (612) 937 -5739
TO: Charles Folch, City Engineer/Director of Public Works
FROM: Dave Hempel, Assistant City Engineer / *
DATE: April 5, 1994
SUBJ: Approve Assignment and Assumption of Development Contract
Lake Susan Hills West 9th Addition
Project No. 93 -5
Action by City Administrator
bndorsed ✓ DwA
We PJ ' ,f rnisslon
Dais c,' to Council
Apparently D.R. Horton, Inc. - Minnesota, has contracted to acquire certain assets of Argus
Development, Inc. and Joseph Miller Construction, Inc. including property in Lake Susan Hills
' West 7th, 8th, and 9th Additions in the city. DR. Horton is aware that the 9th Addition is
subject to a development contract between Argus Development and the City of Chanhassen.
I '1
Pursuant to Item 21K in the General Conditions of the development contract for Lake Susan Hills
West 9th Addition, the City Council may authorize ' assignment and assumption of the
development contracts. Attached is a, correspondence from D.R. Horton's attorney, Mr. Eric Galtz
of Leonard, Street and Deinard, concerning the proposed 'assignment and assumption of the
development contract together with the redraft of the proposed consent to transfer from the City's
attorney's office.
It is therefore recommended that the City Council approve the attached assignment and
assumption of development contract from Argus Development, Inc. to D.R. Horton, Inc.
jms
Attachments: 1. Consent to Transfer Form.
2. Letter from Mr. Eric Galtz dated March 24, 1994.
g.\eng\dave\cc\assign OFFICIAL ENGINEERING COPY
Received
Revision No.
App; oved by City Engineer
Date -S
Approved by City Council
Date
MEMORANDUM
(�f 7�i
CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A.
Attorneys at Lm
March 29, 1994
F,\ (H-) 4
CITY OF CHANHASSEK
Il '11VLT
' MAR
Mr. Dave Hempel
Chanhassen City Dail ENC!l�EERi�O DEPT,
Coulter Drive, Box 147
Chanhassen, Minnesota 55317
RE: Lake Susan Hills West 9th Addition
Assignment and Assumption of Development Contract
Dear Dave:
Enclosed please find copy of correspondence from Attorney Eric Galatz of Leonard,
' Street and Deinard concerning the proposed assignment and assumption of the above
development contract, together with my redraft of the proposed Consent to Transfer in which
I added the words "in part" after the word "security" in line 4 of paragraph 1. Please review the
' Consent and if you find it to be factually correct, please have this matter placed on the consent
agenda for the next City Council meeting for approval.
RNK: sm
' Enclosures
cc: Eric H. Galatz
Very truly yours,
PBEL , KNUTSON, SCOTT
t FUCHS A.
BY:
Roger N. Knutson
�n :: - 0:tl , Center • 13SO Corporate Center Curve • Ewan, NIN 55121
IT`
I
1. 1
March 29, 1994
F,\ (H-) 4
CITY OF CHANHASSEK
Il '11VLT
' MAR
Mr. Dave Hempel
Chanhassen City Dail ENC!l�EERi�O DEPT,
Coulter Drive, Box 147
Chanhassen, Minnesota 55317
RE: Lake Susan Hills West 9th Addition
Assignment and Assumption of Development Contract
Dear Dave:
Enclosed please find copy of correspondence from Attorney Eric Galatz of Leonard,
' Street and Deinard concerning the proposed assignment and assumption of the above
development contract, together with my redraft of the proposed Consent to Transfer in which
I added the words "in part" after the word "security" in line 4 of paragraph 1. Please review the
' Consent and if you find it to be factually correct, please have this matter placed on the consent
agenda for the next City Council meeting for approval.
RNK: sm
' Enclosures
cc: Eric H. Galatz
Very truly yours,
PBEL , KNUTSON, SCOTT
t FUCHS A.
BY:
Roger N. Knutson
�n :: - 0:tl , Center • 13SO Corporate Center Curve • Ewan, NIN 55121
CONSENT TO TRANSFER f
THE UNDERSIGNED HEREBY CERTIFIES TO D.R. HORTON, INC.- MINNESOTA, A '
MINNESOTA CORPORATION THAT:
1. The undersigned, City of Chanhassen (the "City "), is party to that certain Development '
Contract, between Argus Development, Inc. ("Argus") and the City, dated June 14,
1993, and recorded as Carver County Recorder Document No. 159356 (the
"Agreement "). Argus' obligations under the Development Contract are secured in part '
by Letter of Credit No. 28084 -B issued by Construction Mortgage Investors Co.
2. The City acknowledges that D.R. Horton, Inc. - Minnesota intends to purchase and Argus '
intends to sell certain business assets of Argus, including property in the City of
Chanhassen that is subject to the Agreement, and D.R. Horton, Inc. - Minnesota intends '
to assume and Argus intends to assign Argus' 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 Argus' business assets, subject to Agreement.
CITY OF CHANHASSEN
BY:
Its '
7A
LAW OFFICES
LEONARD, STREET AND DEINARD
PROFESSIONAL ASSOCIATION
SIDNEY BARROWS CAROLYH CNALMERS MICHAEL R. COHEN ANDREW P OLT
NANCY HAROLD D. FIELD. JR. JAMES V. ROTH MICHELLE A. A. MIL N I. DANIEL C NGIS
ALLEN I. SAEKS PICHARD H. MARTIN SUITE 2300 TIM MELLE A. MILLER NICOLE A. ENGISCH
THOMAS D. FEINBERG ROBYN HANSEN TIMOTHY L. ME DAVID O. . TC P A ER
MORRIS M. $HERMAN ROBERT L. DEMAY WILLIAM L. GREENS TAMMIE S.. WURZ
GEORGE REILLY ANGELA M. BOHMANN I SO SOUTH FIFTH STREET STEVEN L. BECTON MICHAEL J. WURZER
CHARLES K. DAYTON ROBERT P. TMAVIS PETER H. BACHMAN KAREN E. GIFFORD
' STEPHEN R. PFLAUM JAMES G. BULLARD MINNEAPOLIS, MINNESOTA 55 JOHN S. BRENNAN JANE F GODFREY
CARRIE L. HEMPEL ERIC M. GALATZ
CHARLES A. MAYS JOSEPH M FINLEY STRE
LOWELL J. NOTEBDOM LAWRENCE J. FIELD TELEPHONE (612) 335 -1500 MARL DEBRA G. IMPSO OW DWIGHT A. CARSON
GEOR GE F. MCGUNNIGLE, JR. DAVID W C
. KELLEY C. SON ATTON DANIEL DANIEL L. JA PALLM MOU
RICHARD G. PEPIN. JR. MARK S. WEIR FACSIMILE (612) 335 -1657 SHAUN C. ERTR ANN
FREDRIC T. ROSENBLATT DAVID L. LILLEHAUG JAMES J. BRTRAND HANK
BYRON E. STARNS ROBERT J. HUBER MARK W. PETER E. D CHIFSKTY JOHN OMN A E. KING
K KING
' STEVEN M. RUBIN DAVID KANTOR V. WO T PAMELA J.F. BEL ORE
M L JOHN M. HERMAN AN M. CHRISTY March 24, 19 9 4 STE EN Rvl NDEMANN STEVEN P. SAEL
STEVEN D. DERUYTER JAMES J. BENDER WILLIAM H. KOCH
JAMES R. DORSEY HENRY J. SHEA 111
KATHLEEN M. GRAHAM LOWELL V. STORTZ RONALD J. SCNULTZ
ST EPMEN J. DAVIDSON DOUGLAS S. GREENSWAG ELLEN G. LUGER GEORGE B. L.H. STREET
1161 1-19561
' STEPHEN R. LITMAN ELLEN G. SAMPSON JERRY S. PODKOPACZ ARTHUR . STREET 1107 T1 %II
STEVEN J. RINOSIG BENEDICT DEINARD 110MIIHI
EDWARD M. MO[RSFCLDER ROSANNE NATHANSON
ROBERT LEWIS BARROWS MICHAEL G. TAYLOR JAMA M. KRIZ AM OS S. OCINARO IIOtw I0051
RICHARD J. WEGENER JOHN W. GETSINGER WENDT G. SKJERVEN
DANIEL J. MEINERNEY, JR. THOMAS P. SANDER$ LOREN A. UNTERSEHER
HGH M. MAYNARD ROBERT ZEGLOVITCH ROBERT H. M RGERSON
U
FREDERICK W. MORRIS TIMOTHY WELCH EDWARD A. MURPHY SIDNEY LORBCR
' THOMAS J. CONLET IRENE SCOTT
JOHN C. KUEHN GREGG J. CAVANAGH
BRADLEY J. GILLAN SUSAN M. ROBINER JOSHUA J. KANASSATEW DANIEL M. SATORIUS
MICHAEL A. NCKICH BRADLEY J. GUNN JANN M, EICHLERSMITH ROGER W. KIPP
MARTHA C. BRAND BLAKE SHEPARD, JR. RUTH B. O EILI p CouHacL
DAVID N. HAYNES
WRITER'S DIRECT DIAL NUMBER
' (612) 335 -1509
Mr. Roger Knutson, Chanhassen City Attorney
' Cambell, Knutson, Scott & Fuchs, P.A.,
1380 Corporate Center Curve Suite 317
Eagan, MN 55121
' Re: Assignment and Assumption of Development Agreement
Dear Mr. Knutson:
' D.R. Horton, Inc.- Minnesota, a Minnesota corporation ("D.R.
Horton "), has a contract to acquire certain assets of Argus
' Development, Inc., and Joseph M. Miller Construction, Inc.
(together, "Argus ") including property in Lake Susan Hills West
7th, 8th and 9th Additions in the City of Chanhassen.
D.R. Horton is aware that the 9th Addition is subject to
that certain Development Contract, between Argus Development,
Inc. and the City of Chanhassen, dated June 14, 1993, and
' recorded as Carver County Recorder Document No. 159356. D.R.
Horton is also aware that Argus' obligations under the
Development Contract are secured by Letter of Credit No. 28084 -B
' issued by Construction Mortgage Investors Co. ("CMIC"). The City
has informed D.R. Horton that Argus has satisfied its obligations
under the Development Agreements affecting the 7th and 8th
Additions and the City has released Argus and the security,
pursuant to City of Chanhassen Resolutions 93 -118 and 93 -119.
D.R. Horton's contract with Argus provides that D.R. Horton
' will assume Argus' obligations under the Development Agreement
and the Letter of Credit as of the date of the closing of the
acquisition. D.R. Horton has obtained CMIC's consent to the
assignment and assumption of Argus' obligations under the Letter
of Credit.
0
Mr. Roger Knutson
March 24, 1994
Page 2
Please provide the City's acknowledgement of and consent to
the transfer by having the appropriate city official execute and
return the enclosed consent.
If you have any questions or require any further
information, please call me at 335 1509, or John Kuehn at 335
1717. I will be out of the office Friday, March 25 through
Monday, March 28. The parties intend to close the transaction on
April 4, 1994, and would like to have the city's consent before
that date, if possible.
Thank you for your prompt attention to this matter.
Very truly yours,
LEONARD, STREET AND DEINARD
By
ric H. Gal tz
ehg \drhorton \consents.cty