1b. Contrct Amendment to Minnewashta Meadows CITYOF I I)
CHANHASSEN
•
":,
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900 • FAX (612) 937-5739
' MEMORANDUM
TO: Don Ashworth, City Manager
' FROM: Gary Warren, City Engineer ,fit
tip
' DATE: November 29 , 1989
SUBJ: Approve Contract Amendment to Minnewashta Meadows
Development Contract, Gary Carlson
Project No. 88-2
iAs will be recalled , on November 6, 1989 , the City Council
adopted the final assessment roll for the Minnewashta Meadows
' Improvement Project No. 88-2 (Gary Carlson) . The Council agreed
with adoption of the roll that Mr. Carlson is entitled to reim-
bursement as stated in the November 2, 1989 staff report if and
when the City collects its sanitary sewer and watermain connec-
tion fees from Lot 1 , Block 1, Larson First Addition and the
Kerber property which were excluded from the project area (see
exhibit A) . •
In addition to this condition , Mr. Carlson has requested that the
City consider releasing its security requirement of the original
development contract such that he can liquidate the collateral
' which he has pledged for the letter of credit security on this
project and use these proceeds to pay off the majority of the
outstanding assessments to be levied on this project. One of the
assessments has already been paid by Mr. Carlson and the colla-
teral from the letter of credit will pay for an additional 12
assessments in the subdivision. This will leave 3 'lots out of Re. ,ty_
the total 16 to be levied. Two of the lots, Lot 13 and Lot 15 , -
have homes presently built on them. Lot 16 is vacant.
Although it is true that requiring the developer to retain
' security in place until payment of the assessments is perhaps a
more secure financial position for the City, I believe that the
City stands to gain by Mr. Carlson ' s willingness to pay off the
' $137 ,967 portion of this assessment obligation at this time. The
value of the remaining three lots is sufficient enough such that
in the extreme case that these properties would go tax for-
feiture, the City would be able to sell these lots and pay off
the outstanding assessments .
I
11 Don Ashworth
November 29 , 1989
Page 2
It is therefore recommended that the attached Amendment No. 1 to
the Minnewashta Meadows development contract be approved by the
City Council and execution authorized.
Attachments
1 . Development Contract Amendment No. 1.
' 2 . Letter of Credit No. 70.
3 Minnewashta Meadows Development Contract.
4 . Staff report dated November 2, 1989.
c: Gary Carlson
1
1
I
I
1
1
I
I
I
.v
f
CITY OF CHANHASSEN
MINNEWASHTA MEADOWS
DEVELOPMENT CONTRACT
AMENDMENT NO. 1
WHEREAS, the City of Chanhassen (the "City") and Gary D.
and Maureen G. Carlson, husband and wife (the "Developer" ) , have
entered into a development contract for the Minnewashta Meadows
subdivision dated December 1, 1988 which was recorded with the
County of Carver as Document No. 102063 on December 21 , 1988; and
WHEREAS, the Developer has borne the cost of
constructing the sanitary sewer and watermain laterals to service
the two properties shown on the attached Exhibit A (PID Nos.
25-0050200 and 25-4000010 ) which were excluded from the
assessment roll for Improvement Project No. 88-2 by previous City
Council action; and
WHEREAS, the City Council at its November 6, 1989 regu- 1
lar meeting approved the concept for reimbursement of sanitary
sewer and watermain connection fees to the Developer for these
same two properties; and
WHEREAS, the Developer wishes to pay off the
assessments resulting from Project No. 88-2 for Lots 1 through
12, Block 1, Minnewashta Meadows, from the security proceeds
pledged under Article 6 of the original development contract; and
WHEREAS, the Developer requests the City waive its '
security requirements pertaining to the assessments levied for
Lots 13, 15 and 16 , Block 1 , Minnewashta Meadows :
NOW, THEREFORE, BE IT RESOLVED by both parties that the 1
original development contract be amended as follows:
1 . In exchange for receipt of cash proceeds in the 1
amount of $137 ,967 .60 for payment of all outstanding assessments
against Lots 1 through 12 , Block 1, Minnewashta Meadows , the City
agrees to release Irrevocable Letter of Credit No. 70 issued by
The Chanhassen Bank.
2. The City has levied the assessments remaining on
Lots 13, 15 and 16, Block 1, Minnewashta Meadows for Improvement
Project No. 88-2 as adopted by the City Council on November 6,
1989 and now agrees to waive the security requirements of Article
6 relating to securing these outstanding assessments .
3. The Developer agrees that prior to issuance of a
certificate of occupancy for Lot 16, Block 1 and upon the sale of
Lots 13 and 15, Block 1, Minnewashta Meadows , that the
outstanding assessments mentioned above shall be paid in full by
the Developer. 1
-1- 1
F•
4. The City agrees that the Developer is entitled to
reimbursement of sanitary sewer and water connection fees if
collected by the City in the future from the properties iden-
tified on Exhibit A attached (PID Nos. 25-0050200 and
25-4000010 ) . The City intends to do everything reasonably in its
power to collect said fees and to reimburse Developer within one
(1) year of collection of said fees. The amount of reimbursement
' shall not exceed $12, 987 . 56 plus interest calculated from the
project assessment date to the service connection date at 4f%.
The City' s hook-up charge for sanitary sewer and water is not a
part of this reimbursement.
1 5 . The Developer 's right to reimbursement of said con-
nection fees shall be for a period of one year from the date of
' collection of the connection fees providing the Developer has
notified the City within this time period that reimbursement is
due. If the City does not act , and/or the Developer has not
notified the City in writing of his right to reimbursement within
1 this one-year timeframe, the Developer 's right to reimbursement
shall lapse.
IN WITNESS WHEREOF, the parties hereto have caused these
presence to be executed on this day of , 1989 .
1
CITY OF CHANHASSEN
1 BY:
Donald J. Chmiel , Mayor
1 (SEAL)
BY:
Don Ashworth, City Manager
i
DEVELOPER
•
BY:
Gary D. Carlson
BY:
Maureen G. Carlson
1
1
-2-
STATE OF MINNESOTA )
( ss.
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me this
day of , 1989 , by Donald J. Chmiel, Mayor ,
and by Don Ashworth, 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 ) II
( ss.
COUNTY OF CARVER ) '
The foregoing instrument was acknowledged before me this
day of , 1989 , by Gary D. Carlson and
Maureen G. Carlson, husband and wife.
NOTARY PUBLIC
I
DRAFTED BY:
City of Chanhassen
690 Coulter Drive
P.O. Box 147
Chanhassen, MN 55317
( 612) 937-1900
-3-
I.
I
I
1 MyiGc 60 o ?EQcdP1bR S i/t co► of S•c 32• 1
........etZu......
1 :lriyt:;jir:.
1 A uki:Gl,+:.
1 rl•:fl::•r:;:
1 �lll111:f`::
111 1
kI
O • 'f• f ill::r+i
'Y 8 is " yt'x+�.i//;rl,•'•:•ir
I9 c.t•e• . 5 'r ``j:.
PID NO. 25-49 90010 ` .,. 4.
1 w rr:f ..
j: qrf 0`
1 Mfr :•,+.•.
' M NEWA ' H
N�f ~0' .:,,,,,,,i00-4 :::
4 \.. << • /is ;1 n'll.:.
, „,„.,.,:/97.4:..4.,,„I . CART W4Y"" 5 1 �./i;l[�'y.t.•rr•a.:•.
.. t ,�11 1 t't• ...at,•; i s l: t r;.lj':,'.f4p1••.••..•bb` _�� `?'.: I•r.. tT!!•1./04.#r`, ;:i.1't�#lrl�i 1�' l• ,. :111,1 r "!,f xt x �•1•. !i'f ,,i 'J.: 1f.'^ti�'' :.�'.fib !:i 9.ii.i f;r► f':x:iJ,ft , N" :':' f I'1•„r„t„. i r i i71i O
1
kr.,0000 •' �: kill'�1k..>`��'•'.?I•Sk/;�1������7xf1y'g �'•' 'I6” 6 '.'•'f y:4.1"$,rlf s;�t;1:It•,¢;A*.-`' �` 4:F• ��` 2'I ..'k Yk:11.li1tNL it::
k r:
i
` — •(•.f:'+'r:;•:.:,iy 411::..1,..
P�p _:� 2 0 0 2 0 kify,:jf,:rl::: ` ,
'.:1;/‘i I■■_ 1 6 •„;..1,. .- , le„..-A-,:ct sit:'...- .... . .... .....•""
ti
_ .1 b /-” ti`s:
A_„.....-..:--..-_-� • /
/ 1
fres
I r'
' ■ '
I EXHIBIT A
I
I
TIE 'EASY PLACE)
(2: A A
BANTE:1
March 27, 1989
1
Irrevocable Letter of Credit No. 70
Mr. Gary Warren
City Engineer
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
Dear Mr. Warren:
We hereby authorize you to draw on us, after March 27, 1989, for the
account of Gary D. and Maureen G. Carlson, up to an aggregate amount of ONE
HUNDRED THIRTY THOUSAND SEVEN HUNDRED NINETY AND NO/100 U. S. DOLLARS
($130,790.00), available by your draft(s) at sight. This Letter of Credit
is issued to comply with the Development Contract on file with the City of
Chanhassen for the Minnewashta Meadows Development.
We agree that this Letter of Credit shall expire no sooner than March 27,
1990 unless sooner released by the City of Chanhassen. In the event that
this Letter of Credit is not released by the City of Chanhassen prior to
March 27, 1990, this Letter of Credit shall be replaced or renewed by a
Letter of Credit in the same amount with an expiration,. date of March 27,
1991.
All drafts must bear on their face "drawn under Letter of Credit No. 70
dated March 27, 1989" and must be presented to the State Bank of Chanhassen
no later than 2:00 P. M. (CST) on March 27, 1990, when this Letter of
Credit will expire, and must be accompanied by this Letter of Credit and a
certification by the City Clerk that the funds are due either by reason of
default under the terms of the above mentioned Development Contract or by
reason of a failure to replace this Letter of Credit as described in the
preceding paragraph.
This Letter of Credit is subject to the Uniform Customs and practices for
Commercial Documentary Credits, 1984 revision, International Chamber of
Commerce publication number 400.
STATE BANK F CHANHASSEN ,
�
By: rT.� / ; ,L.;_____ CITY OF CHANHAS
.� S'EN
Kelvin P. McShane 43R/int/IND
President �r
PEAR 27 1989 '
600 West 78th Street •Chanhassen, MN 55317 •(612)937-BANK ENGINEERING DEPT.
CITY OF CHANHASSEN
DEVELOPMENT CONTRACT
(City Installed Improvements)
MINNEWASHTA MEADOWS
' SPECIAL PROVISIONS
AGREEMENT dated Cembe.r 1 , 19 , by and between
the CITY OF CHANHASSEN, a Minnesota municipal corporation, (the
"City" ) , and GARY D. CARLSON and MAUREEN G. CARLSON, husband and
' wife (the "Developer" ) .
1. Request for Plat Approval. The Developer has asked,
' the City to approve a plat for MINNEWASHTA MEADOWS (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 and furnish the security required by it.
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--Plat - "NOT APPROVED YET"
Plan B--Grading, Drainage, and Erosion Control Plan dated
June 6, 1988 , prepared by Engelhardt &
' Associates.
Plan C--Plans and Specifications for Improvements dated
June 6, 1988, prepared by Engelhardt &
11 Associates.
4. Private Improvements. The Developer shall install
' in accordance with City ordinances and standards and pay for the
following:
A. Street Lights
B. Underground Utilities (e.g. gas, electric,
telephone, CATV)
C. Setting of Lot and Block Monuments
D. Surveying and Staking
I/
' SP-1
•
5. Public Improvements. The City shall design and
construct the following public improvements within the plat:
A. Site Grading
B. Water System I
C. Sanitary Sewer
D. Storm Sewer Drainage System
E. Streets
F. Concrete Curb and Gutter
G. Street Signs
6. Assessment of Costs. The City shall assess the cost '
of the public improvements referred to in paragraph 5 above
together with administrative, planning, engineering, capitalized
interest , legal and bonding costs against the plat . The
assessments shall be deemed adopted on the date this Contract is
signed by the City. The assessments shall be paid over an 8-year
period without deferment, together with interest at a rate set by
the City. Before the City issues a Certificate of Occupancy for
a structure built on a lot, all of the aforementioned assessments
against the lot must be paid in full. The Developer waives any
and all procedural and substantive objections to the installation
of the public improvements and the special assessments , including
but not limited to hearing requirements and any claim that the
assessments exceed the benefit to the property. The Developer
waives any appeal rights otherwise available pursuant to M.S.A.
5429.081.
7. Time of Performance. The Developer shall install 1
all required improvements referred to in paragraph 4 above by
November 30 , 1988. The Developer may, however, request an exten-
sion of time from the City. 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.
8. 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 from a bank, cash escrow, or equivalent ("Security")
for $ 130, 790 .00 . The amount of the security was calculated
as 110% of the following: 1
•
Estimated principal amount
of special assessments for
public improvements together
with one year of interest $ 105 ,900
Engineering, surveying, '
and inspection $ 13,000
TOTAL COST OF PUBLIC IMPROVEMENTS $ 118,900 1
This breakdown is for historical reference; it is not a restric-
tion on the use of the security. The security shall be subject
to the approval of the City. The security shall be for a term
SP-2
ending December 31 , 1997. In the alternative, the security may
11 be for a one-year term provided it is automatically renewable for
successive one-year periods from the present or any future
expiration dates with a final expiration date of December 31 ,
1997, unless sixty (60) days prior to an expiration date the bank
notifies the City that it elects not to renew for an additional
period. The City may draw down the security , without notice, for
' any violation of the terms of this Contract or upon receiving
notice that the security will be allowed to lapse before December
31 , 1997. If any installment of special assessments is not paid
on any lot when due, and in any event before any penalty is
' attached, the City may draw down the security to pay off the
balance, whether due or not , on all special assessments in the
plat . 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 25% of
the original amount until all special assessments have been paid.
7. Notices. 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:
Gary D. and Maureen G. Carlson
3831 - 62nd Street West
Excelsior, MN 55331
Telephone: (612 ) 474-3354
Notices to the City shall be in writing and shall be either hand
delivered to the City Manager, or mailed to the City by
registered mail in care of the City Manager at the following
address:
Chanhassen City Hall
690 Coulter Drive
P.O. Box 147
Chanhassen, Minnesota 55317
Telephone: (612) 937-1900
8. Other Special Conditions.
' A. The two sheds on Lot 14, Block 1 and the street
right-of-way and the small one-story single family residence on
Lot 15 , Block 1 , shall be removed prior to street construction
and installation of utilities. The demolition debris from the
home and sheds shall be properly disposed of off site.
B. A 20-foot trail easement shall be dedicated
along the west side of Church Road in a form suitable for
recording against the property.
C. All utility improvements shall conform to the
City' s standards for urban construction.
I
SP-3
D. The Developer shall obtain and comply with all I
conditions required by the Minnesota Department of Natural
Resources, Watershed District , and any other regulatory agencies.
E. A gate valve shall be located three feet behind 1
each hydrant in accordance with the City's detail for hydrant
construction. w ,
F. Wood-fiber blankets or equivalent shall be used
on all slopes greater than 3:1.
G. Utility and drainage easements shall be pro-
vided on the plat for the proposed retention/sedimentation basin
located at the south of Lots 9 and 10 of Block 1. 1
H. The sanitary sewer along Church Road shall be
installed at a sufficient depth to provide gravity service to the, II Frizzell and Kerber property.
I. Construction of sanitary sewer and watermain
along Church Road shall take all necessary precautions to protect
existing City utility and roadway improvements.
J. The driveway located on Lot 16, Block 1, shall
be located at the most northerly location.
K. In accordance with the conditions of the
wetland alteration permit , there shall be no construction acti-
vity beyond the erosion control fence adjacent to the Class B
wetland as shown on Plan B.
9. General Conditions. The general provisions of this ,
Contract , approved by the City Council on February 22 , 1988, are
attached as Exhibit "B" and incorporated herein.
CIT HANHASSEN
BY: l %IL
homas L. H ilton, Mayor
(SEAL)
BY: /a
6P-4---.01-1;61
Don Ashworth, City Manager
DEVELOPER
I
BY: AOOr
G.
Ga ' D. C= • son
BY: II G. Carlson /'■..4
SP-4 l/�!
f
II STATE OF MINNESOTA )
( ss.
COUNTY OF CARVER )
IThe fore o'ng instrument was acknowledged before me this
1pr1✓ day of ,t,f, J 1988, by Thomas L. Hamilton, Mayor,
and by Don Ashworth, City Manager, of the City of Chanhassen , a
II Minnesota municipal corporation, on behalf of the corporation and
pursuant to the authority granted by its City Council.
1 —. : . I
NO/RY • :LIC
I '• '•i:• Ke.PSN J. E"C71-"Ac7T
STATE OF MINNESOTA ) ''�' NOTARY PU'L'C- r- - OTA
CA :'`;; C^. ' _
( ss. ,_ 5 My co nmis.aon esr. _3 t..-16.91
IICOUNTY OF CARVER ) - - - '"
if The foregoing instrument was acknowledged before me this
Iday of , 1988 , by Gary D. Carlson .act
liamemmm avadxxotue7
1 Bradley W.Solheim
011Lik,:
4 Notary Public-Minnesota NOTARY PUBLIC
.:,' career County
t7 My Comm. Exp.1.25.90
II DRAFTED BY:
City of Chanhassen
690 Coulter Drive
P. O. Box 147
1 Chanhassen, MN 55317
(612) 937-1900
IISTATE OF MINNESOTA )
) ss.
IICOUNTY OF CARVER )
l The foregoing instrument was acknowledged •efoxe me •this
C 61_ day of , 1988, Mauree G. Ca son.
1 r / ,.,_/
Bradley W.Solheim ""'�� �_
Notary PublicMinnesota ' NOTARY UBLIC
s; ` Carver County
Y•'" My Comm.Exp.1-25-90
1
I
SP-5 5 .1_4_ . ;
•
CONSENT I
Gary D. Carlson and Maureen G. Carlson , fee
owners of all or part of the subject property, the development of
II
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 sub-
II
ject property owned by them.
Dated this iCk day of �__,�r , 19 66
1 / 1
I
STATE OF MINNESOTA )
ss.
COUNTY OF C e e Jek )
I
The foregoing instrument was acknowledged before me this
U1 day of AuGUSI , 19S ' , by . Aay p. C c t.so.✓ . 1
Notary Pub ' I
1
STATE OF MINNESOTA )
ss.
II
COUNTY OF C62A/tK )
The foregoing ins rument was orolowledged before m- this II(� day of , 19,a, our-en G. Car •
/ /
ir r, 6/ 44
(_ ,-`.......___
N. ary • bli — .
Bradley W.S0Ihetm
Notary Pubilo-Mlnnesote
W. Carver County I
My Comm.ExP.1-2540
I
I
I
SP-6 Le , 4_�
1
11
I
EXHIBIT "A"
Lots 3 and 4, Schmid' s Acre Tracts
' to be platted as Minnewashta Meadows
1
I
I
1
11
'77
I
CITY OF CHANHASSEN I
DEVELOPMENT CONTRACT
(City 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 has been received by the City, 3) the plat has been recorded
with the County Recorder's Office of the County where the plat is
located, and 4) the City Engineer has issued a written 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 multi-
phased 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. I
3. Effect of Subdivision Approval. 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.
4. Private Improvements. The private improvements specified
in the Special Provisions of this Contract shall be installed in
accordance with City standards, ordinances, and plans which have been
prepared and signed by the Developer, furnished to the City, and
approved by the City Engineer.
5. License. The Developer hereby grants the City, its agents, II
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.
6. Erosion Control. Before the site is rough graded, and
before any utility construction is commenced or building permits are
1
IIr
I issued, the erosion control plan, Plan B, shall be implemented,
inspected, and approved by the City. The City may impose additional
erosion control requirements if they would be beneficial. All areas
II 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 control plan, seed shall be certified
seed to provide a temporary ground cover as rapidly as possible. All
II 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. If the Developer does not comply with
I the erosion control plan and schedule of supplementary instructions
received from the City, the City may take such action as it deems
appropriate to control erosion at the Developer's expense. The City will
II 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
1 with the erosion control requirements. Erosion control needs to be
maintained until vegetative cover has been restored, even if
construction has been completed and accepted. After the site has been
II stabilized to where in the opinion of the City there is no long er a
need for erosion control, the City will remove the erosion control
measures. Before the City signs the final plat, the Developer shall pay
the City a fee of $1.00 per foot of erosion control that is required to
11 be constructed in accordance with the erosion control plan for the plat,
Plan B, to cover the City's cost for the removal.
I 7. Clean up. The Developer shall maintain a neat and orderly
work site and shall daily clean, on and off site, dirt and debris,
including all blowables, from streets and the surrounding area that has
IIresulted from construction work by the Developer, its agents or assigns.
8. Acceptance and Ownership of Public Imprpvements. Upon
completion and acceptance by the City of the work and construction
II required by this Contract, the improvements lying within public
easements shall become City property. Before the City accepts the
improvements, the City Engineer shall be satisfied that all work is
II satisfactorily completed in accordance with the approved plans and
specifications. Final acceptance of the public improvements shall be by
City Council resolution.
II 9. Claims. In the event that the City receives claims from
laborers, materialmen, or others that work required by-this •Contract to
be performed by the Developer has been performed, the sums due them have
II 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
II 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
-8- C ,Lk . _
with the District Court, except that the Court shall retain jurisdiction II
to determine attorneys' fees.
10. Park and Trail Dedication. Prior to the issuance of ,
building permits for residential construction within the plat, the
Developer, its successors or assigns, shall pay to the City the park and
trail dedication fees then in force pursuant to Chanhassen City
Ordinances and City Council resolutions.
11. Landscaping. Unless the lot already has one tree on it,
the Developer shall plant a tree on every lot in the plat. Suitable
trees include:
Maples Ash
Linden Basswood
Green Ash Birch
Honeylocust Ginko (male only) II
Hackberry Kentucky Coffee Tree
Oak
Other species of trees may be approved by the building inspector. Trees
which can cause a public nuisance, such as cotton producing trees, or
can be a public hazard, such as bug infestation or weak bark, are
prohibited. The minimum tree size shall be two (2) inches caliper,
either bare root in season, or balled and burlapped. The trees may not
be planted in the boulevard. In addition to any sod required as a part
of the erosion control plan, Plan B, the Developer shall sod the
boulevard area and all drainage ways on each lot utilizing a minimum of II
four inches of topsoil as a base. Weather permitting, the trees, sod,
and seed shall be planted before Certificates of Occupancy are issued
for a lot. I
12. Warranty. The Developer warrants all work required to be
performed by it against poor material and faulty workmanship for a 11 period of one (1) year after its completion and acceptance by the City.
All trees, grass, and sod shall be warranted to be alive, of good
quality, and disease free at the time of planting. All trees shall be
warranted for twelve (12) months from the time of planting. The
Developer or his contractor(s) shall post maintenance bonds (Miller-
Davis Company Form No. 1636 or equal) or other security acceptable to
the City to secure the warranties at the time of final acceptance. I
13. Lot Plans. Prior to the issuance of building permits an
acceptable Grading, Drainage, Erosion Control, and Tree Removal Plan
shall be submitted for each lot as required in the Special Provisions,
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 City Ordinance. I
14. Existing Assessments. Any existing assessments against the
plat will be respread against the plat in accordance with City
standards.
1
•
15. Street Lighting. Before the City signs the final plat, the
Developer shall pay the City a fee of $200.00 for each street light
installed in the plat. The fee shall be used by the City for furnishing
electricity for each light for twenty (20) months.
16. Street Signs. All street name and traffic signs required
by the City as a part of the public improvements shall be furnished and
installed by the City at the sole expense of the Developer.
17. 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.
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, two
percent (2%) of construction costs;
iii) if the cost of the construction of public
improvements is over $1,000,000, one and one-half
percent (1 1/2%) of construction costs.
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 8 of the Special Provisions.
B. 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 pay or
incur in consequence of such claims, including attorneys' fees.
C. 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.
D. The Developer shall pay in full all bills submitted to
it by the City for obligations incurred under this Contract. 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 may or may not have sold, until the
r
-10-
bills are paid in full. Bills not paid within thirty (30) days shall I
accrue interest at the rate of 8% per year.
E. In addition to the charges and special assessments I
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.
18. 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 11
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.
19. 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.
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.
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. Delays. If building permits are issued prior to the
completion and acceptance of public improvements, the Developer assumes
all resulting liability and costs from delays in completion of public
improvements and damage to public improvements caused by the City,
Developer, its contractors, subcontractors, materialmen, employees,
agents, or third parties. i
G. Occupancy. Unless approved in writing by the City
Engineer, no one may occupy a building for which a building permit is
-11-
II
issued on either a temporary or permanent basis until the streets needed
for access have been paved with a bituminous surface.
H. 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.
11 I. 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 will execute and deliver to the Developer a
release.
J. 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 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 $200,000
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.
K. Remedies. Each right, power or remedy herein conferred
upon the City is cumulative and in addition to every other right, power
or remedy, express 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.
L. 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.
M. Construction Hours. Construction equipment may only be
operated in the plat between 7:00 a.m. and 6:00 p.m. , Monday through
Saturday. Operation of construction equipment is also prohibited on the
following holidays: New Year's Day, Memorial Day, July 4th, Labor Day,
Thanksgiving Day, Christmas Eve Day, and Christmas Day.
11
-12-
•
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 subdivision are
accepted by the City. Warning signs shall be placed by the Developer
when hazards develop in streets to prevent the public from traveling on
same and directing attention to detours. If streets become impassable, I
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. 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.
OFFICE OF COUNTY RECORDER
STATE OF MINNESOTA
COUNTY OF CARVER
Filing Fee 45
This is to certify that this document
wa4�i��led in t..• •ffice op,th�/day
of20 _19:1 • .D.at 7 o'clock
ff/���M. and was duly recorded as
document no. 102063
CARL W.HANSON JR.
Count d
. G
I
J (4///
-13-
14 _1
I . • . .. t-c- _-
., CITY OF
I .1
.,1). .
. ,, . CHANHASSEN
1
,:_ -,... 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA SO 55317
(612) 937-1900 • FAX (612) 937-
Iby City Administrator
MEMORANDUM Enaotse� V/ �'
lyio tle _
IITO: Don Ashworth, City Manager Rejecter 2 --e DetP
FROM: Gary Warren, City Engineer late Submitted to Commission
IDATE: November 2, 1989 or Submitted to Council
it-6- e 1
1 SUBJ: Adoption of Amended Assessment Roll for
Minnewashta Meadows Improvement Project No. 88-2 & 88-2A
IIOn September 25 , 1989 , the City Council adopted the final
assessment roll for the Minnewashta Meadows Improvement Project
No. 88-2 and 88-2A. As noted in the attached meeting minutes,
II Mr. Carlson was present at the assessment hearing and requested
that staff look into three items of concern relating to the
assessment roll. The three items are as follows:
IIA. Church Road Assessment Rationale
' The Minnewashta Meadows project scope included the extension
of sanitary sewer and watermain along the southeasterly boun-
dary of the property (see map) . In order to take advantage of
construction efficiency with the Metropolitan Waste Control
I Commission ' s Lake Virginia Forcemain project on Church Road,
this element of the Minnewashta Meadows improvements was
incorporated as a change order to the MWCC 's forcemain pro-
II ject. As noted in the attached invoice, the City was billed
for the services by the Commission and these costs have been
incorporated into the Minnewashta Meadows assessment roll
since these improvements were 'required as a part of the ori-
II ginal scope for Minnewashta Meadows . At issue, �I believe, is
the fact that the Kerber property and the Larson First
Addition property also have access to this sewer and water
II line and indeed utility stubs were constructed to service
them in the future.
IThe difficulty arises in that these two properties were
excluded from the assessment roll by the City Council. While
it is therefore appropriate and correct that the Church Road
improvement costs are to be assessed to Mr. Carlson, it simi-
II larly would be appropriate for the City to consider reim-
bursing Mr. Carlson if and when these parcels do ultimately
take service from the Church Road utilities. This poses an
I
1
Don Ashworth
November 2, 1989
Page 2
administrative headache to keep track of a condition such as _
this since it could be quite some time in the future before
these properties are connected and the appropriate connection'
fees paid.
It would therefore be my recommendation that the City
Treasurer be directed to place on the property records for
the Kerber property and Lot 1, Block 1, Larson First Addition
an appropriate comment such that if and when an assessment
search is done on these properties for future sale of the
property, that the prospective buyers will be notified that
connection to the Church Road utilities will be required and ,
also noting for our information that Mr. Carlson is entitled II
to reimbursement of the connection fees collected from these
properties to a maximum of $12, 987.56 which represents one-
half of the cost of the Church Road improvements abutting
this property.
B. Capitalized Interest
A question was raised about the interest charged the project
for the bond issue, specifically that the City was charging
capitalized interest to the project while not recognizing
interest earned on the proceeds while in the City treasury
and prior to disbursements being made to the contractor. The
previous assessment rolls have utilized a capitalized
interest figure of $14,016. This is a net capitalized
interest representing 90% of the total interest expense the
City anticipated incurring on the bonds for this project.
Since the City' s sub-ledger actually does recognize interest
earnings on a monthly basis, it was decided to utilize the
full capitalized interest amount of $15,573 as shown on
Attachment #4 when calculating the revised roll and also then
recognize interest earnings to be credited to the project in
the amount of $11, 354. 33.
The bad news for Mr. Carlson is that this deduction is offset 1
partially by an increase in the administrative .charge for the
project which was also found in error. As it turns out, the
City's administrative charge, as described in Attachment #5,
had not been applied to the 1989 project costs. This
resulted in an additional $4,486.78 which was applied to the
project cost. The project cost summary has been revised and
is shown in the attachments as Revision II (Attachment #6) .
The total project cost nets out to be $183,956.76. When
distributed amongst the 16 units, this results in a net
assessment per unit of $11,497.30 or $288.75 less than the
previously adopted roll. A revised assessment roll has been
prepared and is attached which reflects this amount.
I
Don Ashworth
November 2, 1989
Page 3
C. Assessment Credits from Project No. 75-5
I have not had an opportunity to delve into the history and
details of the assessment roll for Project No. 75-5 which Mr.
Carlson alleges he has credits due from. I have indicated to
Mr. Carlson previously this is a separate assessment roll and
issue and if credits indeed are warranted that they would be
provided on the merits of that project and not intermingled
with the Minnewashta Meadows project. On first impressions,
however, contrary to Mr. Carlsons allegations, Minnewashta
Meadows is not a "stand alone" project since the sanitary
sewer and water service for the Meadows is ultimately taken
from the utilities along the west side of the his property
which were installed under Project No. 75-5. I intend to
more specifically look into this project file and if any cre-
dits are appropriate it would be brought back to Council for
consideration.
It is therefore recommended that the City Council adopt the
attached revised assessment roll dated November 2, 1989 for
Minnewashta Meadows ublic Improvement Project No. 88-2 and
further that the City Treasurer be directed to make an
appropriate entry in City records concerning the Kerber property
and Lot 1, Block 1 of Larson First Addition to recognize that Mr.
Carlson is to be reimbursed in a cost not to exceed $12,987.56
from the connection charges which the City collects from these
properties if and when they connect to the City's utilities on
Church Road.
e
1 Attachments
1 . September 25, 1989 City Council minutes.
2. Map.
3. MWCC Invoice.
4. Bonds of 1988 Capitalized Interest summary sheet.
5. February 17, 1987 Administrative Charge Policy.
6. Project Cost Summary - Revision II. '
7. Assessment Roll - Revision II dated 11/2/89. f
8. September 20, 1989 staff report.
c: Bill Engelhardt
Gary Carlson
I
I
I
CONTRACT FOR DEED Form No. 55-M Minnesota Uniform Conveyancing Blanks(1978)Miller.navis Co.,Minneapolis
Individual($)to Joint Tenants
No delinquent taxes and transfer entered;
Certificate of Real Estate Value
( )filed ( )not required
, 19___.
County Auditor
By
Deputy
(reserved for recording data)
MORTGAGE REGISTRY TAX DUE HEREON:
' (reserved for mortgage registry tax payment data)
Date: , 19 8 9
THIS CONTRACT FOR DEED is made on the above date by Gary D . Carlson and
Maureen G . Carlson Husband and Wife
(marital status)
Seller (whether one or more), and Clinton B . Wager and Caroll J . Wager
' , Purchasers, as joint tenants.
Seller and Purchasers agree to the following terms:
1. PROPERTY DESCRIPTION. Seller hereby sells, and Purchasers hereby buy, real property in
Carver County, Minnesota, described as follows:
Lot Fifteen (15) , Block One (1) , Minnewashta Meadows
1
1
together with all hereditaments and appurtenances belonging thereto (the Property).
' 2. TITLE. Seller warrants that title to the Property is, on the date of this contract, subject only to the
following exceptions:
(a) Covenants, conditions, restrictions, declarations and easements of record, if any;
' (b) Reservations of minerals or mineral rights by the State of Minnesota, if any;
(c) Building, zoning and subdivision laws and regulations;
(d) The lien of real estate taxes and installments of special assessments which are payable by
Purchasers pursuant to paragraph 6 of this contract; and
(e) The following liens or encumbrances:
None
1
' 3. DELIVERY OF DEED AND EVIDENCE OF TITLE.Upon Purchasers'prompt and full performance
of this contract, Seller shall:
(a) Execute, acknowledge and deliver to Purchasers a Warranty Deed, in
recordable form, conveying marketable title to the Property to Purchasers, subject only to the
' following exceptions:
(i) Those exceptions referred to in paragraph 2(a), (b), (c) and (d) of this contract;
(ii) Liens, encumbrances, adverse claims or other matters which Purchasers have created,
suffered or permitted to accrue after the date of this contract; and
I (iii) The following liens or encumbrances:
None
I
; and
I (b) Deliver to Purchasers the abstract of title to the Property or,if the title is registered,the owner's
duplicate certificate of title.
I4. PURCHASE PRICE. Purchasers shall pay to Seller, at place designated by Seller
Fifty-eight Thousand and no/ 100 Dollars , the sum of
($ 58. 000. 00 ) ,
Ias and for the purchase price for the Property, payable as follows:
$10 ,000 . 00 cash , receipt of which is hereby acknowledged and the
I balance of $48 ,000 . 00 payable in installments of $600. 00 per month
or more at the option of the Purchaser , including interest at the
rate of 10 . 0 percent per annum computed on unpaid balances .
Interest shall commence on the date of closing . The first payment
I shall be due and payable thirty (30) days after closing and
subsequent payments shall be due and payable on the same date of
each and every month thereafter . Payments shall be credited first
Ito interest and the remainder to principal .
. 1
I I ' % . ,
•
I ~par i. • e ay this contract at any time without penalty.'An shall y p y. y partial prepayment shall be applied
first to paymen • is ounts then due under this contract, including unpaid accrued interest,and the
balance shall be applies o - • • cipal installments to be paid in the inverse order of their maturity.
IPartial prepayment shall not postpon• .ue date of the installments to be paid pursuant to this
6. REAL ESTATE TAXES AND ASSESSMENTS. Purchasers shall pay,before penalty accrues,all real
I estate taxes and installr gnts of special assessments assessed against the Property which are due and
payable in the year 19L and in all subsequent years. Real estate taxes and installments of special N
assessments which are due and payable in the year in which this contract is dated shall be paid as
follows: Purchasers are specifically assuming the special assessments
Ifor recent improvements in the total amount of Eleven Thousand Four
Hundred Ninty-seven and 30/100 Dollars ($11 ,497 .30) . Taxes payable in
,� 1989 shall be prorated to date of closing .
.
.,.. Seller warrants that the real estate taxes and installments of special assessments which were due and
payable in the years preceding the year in which this contract is dated are paid in full.
I 7. PROPERTY INSURANCE: ....-
(a) INSURED RISKS AND AMOUNT. Purchasers shall keep all buildings, improvements and
fixtures now or later located on or a part of the Property insured against loss by fire, extended
I coverage perils, vandalism, malicious mischief and if applicable, steam boiler explosion for at
least the amount of full insurable value '
If any of the buildings,improvements or fixtures are located in a federally designated flood prone
area,and if flood insurance is available for that area,Purchasers shall procure and maintain flood
I insurance in amounts reasonably satisfactory to Seller.
(b) OTHER TERMS.The insurance policy shall contain a loss payable clause in favor of Seller which
provides that Seller's right to recover under the insurance shall not be impaired by any acts or
omissions of Purchasers or Seller, and that Seller shall otherwise be afforded all rights and
I privileges customarily provided a mortgagee under the so-called standard mortgage clause.
(c) NOTICE OF DAMAGE. In the event of damage to the Property by fire or other casualty,
Purchasers shall promptly give notice of such damage to Seller and the insurance company.
I 8. DAMAGE TO THE PROPERTY.
(a) APPLICATION OF INSURANCE PROCEEDS. If the Property is damaged by fire or other
casualty, the insurance proceeds paid on account of such damage shall be applied to payment of
I the amounts payable by Purchasers under this contract,even if such amounts are not then due to
be paid, unless Purchasers make a permitted election described in the next paragraph. Such
amounts shall be first applied to unpaid accrued interest and next to the installments to be paid as
provided in this contract in the inverse order of their maturity.Such payment shall not postpone
■ the due date of the installments to be paid pursuant to this contract or change the amount of such ,
■ installments. The balance of insurance proceeds, if any, shall be the property of Purchasers.