7.5 Halla Great Plains Add.MEMORANDUM
TO:
FROM:
DATE:
SUB J:
Mayor
City Council
Scott A. Botcher, City Manager
October 19, 1999
Halla Great Plains Addition Request
I have read Mr. Hempel's report to the City Engineer regarding Mr. Halla's
request for an extension of time to complete his improvements. As he indicated in
the memo, he is requesting an extension of five years. I am in concurrence with
Mr. Hempel in that the requested extension time is simply too long. At some
point, there needs to be some closure on this project. Either it needs to be finished
or the-plat needs to be vacated. To that end, I directed Mr. Knutson to draft for
your review a simple sidebar agreement that would memorialize our agreement
and understanding in granting this final extension.
This agreement would grant the two year extension recommended by Mr. Hempel,
but would further grant to the City the authority to act on behalf of the developer
to vacate the plat should the City so choose.
Shoul~d you have any questions, please contact me directly. Thank you.
g:\user~scottb~halla plat extension.doc
AGREEMENT
AGREEMENT made this day of
by and between the CITY OF CHANHASSEN, a Minnesota
corporation ("City") and DONALD E, HALLA and SANDRA. 3.
HALLA, husband and wife (the "Developer").
RECITALS
, 1949,
municipal
CWAY~A
A. The City approved the plat for HALLA GREAT PLAZNS ADDTTTON. T~e -
plat was filed with the Carver County Recorder on April 17, 1996 as Abstr~t
Document No. 193913 (the "Plat"). ~ -
B. The parties entered into a Development Contract for the
dated October 23, 1995, recorded with the Carver County Recorder on A~il
17, 1996 as Abstract Document No. 193914 (the "DeveloPment Contract").~ - -
C. The Development Contract provides that all requir~'7-
improvements be installed by November 15, 1997. As required by
Development Contract, the Developer has furnished the Citya letter of cre~t) -
for $730,000.00 for guarantee compliance with the terms of t~- ~_.
Development Contract.
D. Pursuant to the Developer's request, the City has previou~-.':.,
extended the completion for the required improvements to
an additional.time extension f~r i'- '
~
1999.
I=, The Developer has requested
completion of the required improvements-.
COVENANTS THE PARTIES AGREE AS FOLLOWS:
NOW, THEREFORE, TN CONSIDERATION OF THE MUTU~:
81917.01 l
RNK: 10/21/99
1. EXTENSION, The City hereby extends the time within which
the Developer must complete the required improvements to January 2,
2002. The City will not grant and the Developer will not request any
additional extensions.
2. SECURITY. The security required by the Development Contract
shall be amended to provide that it is for a term ending January 2, 2003.
:3. PLAT VACATION. Jif the required improvements are not
completed by January 2, 2002, in addition to its other remedies and the
Development Contract, the City on behalf of the Developer may apply to the
District Court to vacate the plat pursuant to Minn. Stat. § 505.14. The
Developer agrees that the City may apply on behalf of and in the name of
the Developer to vacate the plat. The Developer agrees to fully cooperate in
the proceeding and join in any applications that may be necessary. The City
may draw upon and use the security posted with the Development Contract
to reimburse the City for all expenses the City may incur in vacating the
plat, including attorney's fees.
4. RECORDING. This Agreement shall run with the land and may
be recorded against all lots, blocks, and outlots within the HALLA GREAT PLATNS
ADDITION plat.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement the day and year first above written.
(SEAL)
CTTY OF CHANHASSEN
Nancy~ii"Mancino, Mayor
AN D
Scott A. B~_Cher, City Manager
DONALD E. HALLA
SANDRA J. CWAYNA HALLA
81917.01
RNK:I 0/21/99
STATE OF MINNESOTA )
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me this
day of , 1999, by Nancy K. Mancino and by Scott A.
Botcher, respectively the Mayor and 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
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, MN 55:L21
Telephone: (651) 452-5000
RNK:srn
STATE OF MINNESOTA )
( SS,
COUNTY OF )
The foregoing instrument was a~owledged before me this
day of , 1999, 6~,~Q:NALD E. HALLA and SANDRA
CWAYNA HALLA, husband and w~fe. ' .~,,,'"'i,,ii~..i',
....
.. / ,? .. /,'
,/,/'
81917.01 3
RNK: 10/21/99
MEMORANDUM
CITYOF
CHANHASSEN
0 Ci0' Ce,ret Drive, PO Box 147
7ha,/;asse,, Mi,,esota 55317
Pho,e 612.937.1900
Ge,em/Fax 612.937.5739
5~gi, eri,g Fax 612.937.9152
5~b/ic SagO, E~.x' 612.93(2524
TO:
FROM:
Anita Benson, City Engineer
Dave Hempel, Assistant City Engineer
DATE:
October 19, 1999
SUB J:
Consider Request for Extension of Time to Complete
Improvements - Halla Great Plains Addition - Project No. 95-13
Back in October 1997 the City granted the developer, Mr. Don Halla, a two-year
extension to complete the remaining public improvements in Phases II and III of
Halla Great Plains Addition. The street and drainage improvements in Phase I
were completed and accepted by the city in November 1997. The two-year
extension previously granted by the City Council is scheduled to expire on
November 17, 1999 as well as the letter of credit. The street and storm drainage
improvements still need to be completed in the remaining phases (II and III). Mr.
Halla has submitted a letter to the City requesting a five-year extension of time to
complete the required public improvements and development requirements in
Phases II & III of the plat. According to Mr. Halla poor sales in Phase I has
deterred him from proceeding with the remaining phases..
The development contract has a provision where the developer may request the
City for an extension of time to complete the improvements. If extensions are
granted it shall be conditioned upon updating the security posted by the developer
to reflect cost increases and the extended completion date. Currently the City
holds a letter of credit in the amount of $603,000 to guarantee completion of the
remaining improvements in Phases II & III. The letter of credit is scheduled to
expire on November 17, 1999. Should the City Council grant an extension of
time, the letter of credit shall be extended along with a cost increase of 4.2 percent
to cover inflationary construction costs.
............................. O,ccording to the City's Comprehensive Plan municipal utility service is not
proposed to be extended into the area until the year 2020. At this time the City
"h-~s the option of granting an extension of time, use the letter of credit to complete
the necessary street and drainage improvements in the remaining phases or rescind
......... the final plat and revert the land use back to 1 unit per 10 acres in Phases II & III.
The demand for a rural lot subdivision may be less desirable and/or affordable
than a single-family lot with urban services. Although, staff also believes.that if
............................ t~e roadway improvements were constructed in Phases II and III, the lots may be
more marketable. Phases I and III of the development are adjacent to the existing
nursery and golf course, which may be adversely impacting sales of the lots.
7.5
r, Se CiO, of Chanhassen. A ,q.v~t,~)~g co,mttm/ty wt'~h cba, lakes, q~Mio' schooh, a cham~i.~ dow. town, thrivi,~ busi~zesses, a~d beazttiflul parks, A ~reat place to/it,e, work, a,d pla3,.
Anita Benson
October 19, 1999
Page 2
It is therefore recommended that the City Council grant the developer a two-year
extension of time (until November 17, 2001) to complete the street and storm
drainage improvements required in Halla Great Plains Addition Phases II & III
contingent upon the developer extending the letter of credit until November 17,
2001 and increasing the amount to $627,500.
Attachment:
1. Letter dated October 4, 1999 from Don Halla.
2. Phasing Plan
3. Location Map.
c: Don and Sandy Halla
g:\eng\projects\halla\extension memo.doc
Since 1942
10,000 Great Plains Blvd., Chaska, Minnesota 55318
3 Miles South of Chanhassen on Hwy. 101
Phone 612-445-6555
October 4, 1999
David C Hemple
690 City Center Drive, Po Box 147
Chanhassen, MN 55317
Dear Dave,
With refrence to your letter dated Oct 1~.
I had requested back in July that we would need a five-year minium extension on the
public improvements & development.
To date we have only sold four of the lots in the first phase, gifted one and have four
more to be sold.
The sales have been slow to say the least. They are and have been listed with Edina
Realky for over a year now.
Thank You for Your attention and Courtesies,
Don Halla
10,000 Great Plains Blvd
Chaska, MN 55318
CiTY OF t'
OCT 0
ENGINEE~g~ DEPT.
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