1e. Letter of Credit and Exp. date for Installation of Improvements for 7/41 Crossing CITY OF .-�'-
A
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
1 (612) 937-1900 • FAX (612) 937-5739
1 MEMORANDUM
TO: Gary Warren, City Engineer
FROM: Dave Hempel, Sr. Engineering Technician a
DATE: November 28, 1989
1 SUBJ: Extend Letter of Credit and Expiration Date for Installation of
Improvements for Seven Forty-One Crossing (HSZ site)
1 Project No. 88-17 (put)
The developer, Roger Zahn, has requested that the City grant him an extension of
' time to complete installation of the required improvements for his development
of Seven Forty-One Crossing. In addition, he is requesting a reduction and
extension to his letter of credit.
According to the development contract for Seven Forty-One Crossing, the expira-
tion date for installation of improvements is November 30, 1989. The letter of
' credit will expire on December 31, 1989. As you may recall, Mr. Zahn's letter
of credit also includes the improvements for Reed's Orchard Ridge Addition. The
developer has successfully installed approximately 80% of the required improve-
ments on both the Seven Forty-Cne Crossing site and Reed's'Orchard Ridge.
Remaining items include landscaping for the Seven Forty-One Crossing development
along with street construction on 64th Street in Reed's Orchard Ridge Addition.
' Pursuant to the development contract, the letter of credit may be reduced to no
less than 25% of the original amount until all improvements are complete and
accepted by the City. The City currently holds a letter of credit in the amount
of $297,000. 25% of this amount would be $74,250. I feel this amount is suf-
ficient to complete the remaining improvements on both projects.
Therefore, it is recommended that the City Council grant the request to extend
1 the time of performance to install the required improvements to July 1, 1990
together with a reduction in the letter of credit to the amount of 25% of the
original amount ($297,000) which is calculated to be $74,250. The letter of
' credit should be for a term ending December 31, 1990.
OFFICIAL ENGINEERING COPY
Attachments
Received
1. Letter from Roger Zahn dated November 30, 1989. Revision No.
2. Development Contract excerpt. Approved by City Engi
c: Roger Zahn Date , 111.3°!f" ��
1
Approved by City Council
1 Date
HS'Z DEVELOPMENT LTD.
PROPERTY DEVELOPMENT • PROPERTY MANAGEMENT
DEVELOPMENTS SPECIALIZING IN RETAIL
•
November 30, 1989
Mr.Dave Hemple
City of Chanhassen
690 Coulter Drive
' PO Box 147
Chanhassen, MN 55317
Dear Mr.Hemple,
We are hereby requesting a reduction and extension of our letter of credit along with an
extension of the expiration date for installation of improvements with respect to our development
1 contract with the city for 741 Crossing.We are requesting that the extensions be granted until
July 1, 1990 and that the Ietter of credit be reduced to 25% of the original amount set forth in the
development contract. As you know nearly all of the work required to be done under the
development contract is completed and the remaining work is far less than the 25% level
requested herein. This work should be completed as soon as weather allows in the spring.
Thank you very much for your cooperation.
SyLrflj.
R ger an
CEO h CITY
RAZ/dkl
' NOV 3 01989
DICKERING DEPT.
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123 NORTH THIRD STREET, SUITE 808, MINNEAPOLIS, MINNESOTA 55401 (612) 338.2722
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CITY OF CHANHASSEN I
DEVELOPMENT CONTRACT
(Developer Installed Improvements) i
Y SEVEN FORTY-ONE CROSSING
SPECIAL PROVISIONS
I
f
AGREEMENT dated r 2-0 , 19a5 by and between I
the CITY OF CHANHASSEN, a Minnesota municipal corporation, (the
"City") , and HSZ DEVELOPMENT, LTD. , a Minnesota corporation (the
II"Developer") .
1. Request for Plat Approval. The Developer has asked
the City to approve a plat for SEVEN FORTY-ONE CROSSING (referred I
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 I
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 II
accordance with the following plans. The plans shall not be
attached to this Contract. With the exception of Plan A, the
I
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: I
Plan A--Plat dated "Received July 13, 1988" , prepared by
Peters, Price & Samson Land Surveyors, Ltd.
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Plan B--Grading, Drainage, and Erosion Control Plan dated ,
November 10 , 1988, prepared by Barrientos & ''` I
Associates, Inc.
Plan C--Plans and Specifications for Improvements dated
November 10 , 1988, prepared by Barrientos & I
Associates, Inc.
4. Improvements. The Developer shall install and pay
I
for the following:
A. Sanitary Sewer System on 64th Street
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B. Water System on 64th Street
C. 64th Street including Cul-de-sac
D. Concrete Curb and Gutter
E. Street Sign
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F. Street Light
G. Site Grading
H. Setting of Lot and Block Monuments
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I. Surveying and Staking
r10/13/88 SP-1
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J. Construction of Turn Lane for Westbound TH 7
K. Construction of 8-foot Bituminous Trail from
64th Street to TH 41
L. Storm Sewer System from the site to Herman Field
Park
M. Erosion Control
N. Landscaping
5. Time of Performance. The Developer shall install
, all required improvements by November 30, 1989. The Developer
may, however, request an extension of time from the City. If an
I extension is granted, it shall be conditioned upon updating the
security posted by the Developer to reflect cost increases and
the extended completion date.
II6. Security. To guarantee compliance with the terms
of this Contract and the Development Contract for the Reed
I Addition dated the 19th day of October, 1988; payment of special
assessments; payment of the costs of all public improvements and
construction of all public improvements; the Developer shall fur-
nish the City with a letter of credit from a bank, cash escrow,
II or equivalent ( "Security") for $ 297 ,000 .00 . The amount of the
security was calculated as 110% of the following:
I Sanitary sewer $ 13 , 398.00
Watermain $ 29 , 912 .00
Storm sewer $ 67 ,000 .00
Street light and sign $ 300 .00
II Erosion Control $ 2 ,500 .00
Engineering, surveying,
and inspection $ 13 ,511 .00
I Turn Lane on TH 7 $ 22 ,000 .00
Landscaping $ 55 ,000 .00
Reed Addition $ 66 ,241.. 74
ITOTAL COST OF PUBLIC IMPROVEMENTS $ 269,862.74
This breakdown is for historical reference; it is not a restric-
I 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
ending December 31, 1989. The City may draw down the security,
I without notice, for any violation of the terms of the Contract.
If the required public improvements are not completed at least
thirty (30) days prior to the expiration of the security; the
I City may also draw it down. 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 obliga- -
tions are paid, but in no case shall the security be reduced to a
I point less that 25% of the original amount until all improvements
are complete and accepted by the City.
I 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:
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