1a. Discuss Agree with AUSMAR
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AMENDMENT TO
AGREEMENT BETWEEN THE CITY OF CHANHASSEN
AND AUSMAR DEVELOPMENT CO., LLC
THIS AGREEMENT is entered into this day of April, 2000, by the
CITY OF CHANHASSEN, a Minnesota municipal corporation ("City") and AUSMAR
DEVELOPMENT CO., LLC ("AUSMAR").
RECITALS
A. AUSMAR and the City have previously entered into an Agreement dated
September 12, 1997 entitled ''Agreement Between the City of Chanhassen and AUSMAR
Development Co., LLC for Use of Transit Capital financial Assistance and Livable
Communities Demonstration Account Grant Funds as Part of the Metropolitan Counties
Livable Communities Demonstration InitiativeH(the "Agreement").
B. This City has insisted that the following provision be included in the
Development Contract for VU.IJ'.GES ON THE PONDS 6TH ADDmoN:
20% of the housing units shall meet the criteria established for affordability by
the Metropolitan Council. The Developer may not obtain a building permit or
commence construction until the Developer provides the City adequate
guarantees that the affordable housing requirements will be met (the "Housing
Provision ").
C. AUSMAR has asked the City to approve the final plat for VlLlJ'.GES ON THE
PONDS 6TH ADDmON without the Housing Provision.
D. The City is concerned that if the Housing Provision is deleted it will
jeopardize the ability to satisfy the grant requirements.
E. The City is willing to remove the Housing Provision from the Development
Contract subject to the terms of this Amendment.
NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL
COVENANTS THE PARTIES AGREE AS FOLLOWS:
1. The Agreement shall remain in full force and effect except as specifically
modified herein.
2. AUSMAR shall immediately post a letter of credit, on a form satisfactory to
the City, issued by a bank satisfactory to the City, for $250,250 as partial security for
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the indemnity provision in the Agreement. The letter of credit shall be for a one year
period that will automatically be renewed for additional one year periods. The City may
draw on the letter of credit if either:
· demand for repayment of the grant is made by the Metropolitan Counci~ or
· the City receives notice that the letter of credit will not be renewed.
3. Before the City grants final approval for development of the balance of the
property in VILLAGES ON THE PONDS described on the attached Exhibit "A" (exclusive of
development of commercial space not to exceed 30,000 square feet at building sites 9
and 5 on Exhibit "AIf), AUSMAR must increase the total letter of credit to $500,500.
4. The letter or letters of credit will be releaSed and the requirements under
paragraphs 2 and 3 above waived if the City receives notice from the Metropolitan
Council that the housing requirement in the grant will be satisfied by a proposal
consistent with the P.U.D. and City Ordinance, which proposal has been approved by
the City.
5. Contingent upon the execution of this Amendment and posting the
requested $250,250 letter of credit, the City will delete the Housing Provision from the
Development Contract for VILlAGES ON THE PONDS 6TH ADDmoN.
CITY OF CHANHASSEN
AUSMAR DEVELOPMENT CO., LLC
BY: BY:
Nancy K. Mancino, Mayor' Its
AND AND
Scott A. Botcher, City Manager Its
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