1e. Dev Contract for Chan Lakes Business Park 2nd Addition 1
CITY OF
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CHANHASSEN
M .. 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900
MEMORANDUM
TO Don Ashworth, City Manager
FROM: Gary Warren, City Engineer
DATE: December 9 , 1988
SUBJ: Approval of Development Contract for
Chanhassen Lakes Business Park Second Addition,
Alscor Investors Joint Venture No. 2 (Opus )
Planning File 88-25 Subdivision
Attached is the development contract for Chanhassen Lakes
Business Park Second Addition. The special conditions as shown
on page SP-4 contain the conditions of plat approval as adopted
by the Council . While there is a separate development contract
that addresses Lot 1 , Block 1 of the subdivision (the Rosemount
site) this contract is necessary to allow the City to enforce its
' standard conditions for development in the subdivision and most
importantly to obtain the necessary financial security to guaran-
tee the payment of assessments for the Trunk Highway 101 realign-
ment/Lake Drive public improvements. Article 9 of the special
provisions addresses this security issue and is based on the
feasibility study' s cost estimates for the cost of the improve-
ments and resulting assessments against the Opus property in this
' subdivision.
This contract has been -prepared with the input of the City
Attorney and has been reviewed and negotiated with represen-
tatives of Opus Corporation. It is therefore recommended that
the attached development contract for Chanhassen Lakes Business
Park Second Addition be approved and authorized for execution.
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Attachment: Development Contract
1 cc: Marc L. Kruger, Opus Corporation
Development Contract File
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CITY OF CHANHASSEN
DEVELOPMENT CONTRACT
(City Installed Improvements)
CHANHASSEN LAKES BUSINESS PARK SECOND ADDITION
SPECIAL PROVISIONS
AGREEMENT dated , 19 , by and between
the CITY OF CHANHASSEN, a Minnesota municipal corporation, (the
"City" ) , and ALSCOR INVESTORS JOINT VENTURE NO. 2 , a Minnesota
General Partnership whose general partner is ALSCOR INVESTORS '
JOINT VENTURE, a Minnesota General Partnership whose general
partner is OPUS CORPORATION , a Minnesota corporation and fee
owner of the plat (hereinafter collectively referred to as the
"Developer" ) .
1. Request for Plat Approval. The Developer has asked
the City to approve a plat for CHANHASSEN LAKES BUSINESS PARK
SECOND ADDITION (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 dated December 5 , 1988 , prepared by Sunde
Land Surveying, Inc.
Plan B--Trunk Highway 101 Realignment/Lake Drive
Feasibility Study dated November 23, 1988 ,
prepared by BRW, Inc.
4 . Private Improvements. The Developer shall install
in accordance with City ordinances and standards and pay for the
following:
A. Underground Utilities (e.g. gas, electric, '
telephone, CATV) necessary to service any
improvements constructed on the lots within
the plat, to the extent the same are not
provided for in Plan B.
B. Setting of Lot and Block Monuments within the
plat
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' 5. Public Improvements. The City shall design and
construct the public improvements within the plat as described in
Plan B.
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 including the actual amount, term and interest rate,
shall be determined at the assessment hearing following comple-
tion of the project. 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 , but only if and to the extent said assessments are subject
' to and eligible for reduction under the Special Assessment
Reduction Program currently administered by the Chanhassen
Housing and Redevelopment Authority.
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 bene-
fit to the property. The Developer waives any appeal rights
otherwise available pursuant to M.S.A. $429 .081 .
7 . Existing Assessments. The Developer acknowledges
the existing special assessments previously levied against said
property and agrees to the rearrangement of these assessments to
the newly created lots in the Plat in accordance with City stan-
dard policies.
' 8. Time of Performance. Those portions of the private
improvements referred to in paragraph 4 which impact the
installation of the public improvements shall be coordinated and
installed with the City ' s project in order to avoid disruption to
completed elements of the public improvements.
' 9. 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 $491 ,750 .00 . The amount of the security was calculated as
follows:
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SP-2
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Estimated principal amount 11 of special assessments for
public improvements $ 413 ,922 . 41
One year of interest at 8% $ 33 ,113 . 79
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$ 447 ,036 . 20
x 110% '
TOTAL SECURITY AMOUNT $ 491,750 .00
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 remain in force
until all special assessments levied and assessed for the public
improvements have been paid. The security may be for a one-year
term provided it is automatically renewable for successive one-
year periods from the present or any future expiration dates ,
unless sixty ( 60 ) days prior to an expiration date the bank noti-
fies the City that it elects not to renew for an additional
period. The City may draw down the security, without notice to
the Developer, for any violation of the terms of this Contract or
upon receiving notice that the security will be allowed to lapse
before satisfaction of the terms of this contract. If any
installment of special assessments levied and assessed for the
public improvements 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 spe-
cial
assessments levied and assessed for the public improvements
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 the
value of the outstanding assessments levied and assessed for the
public improvements against the plat.
The security required herein may be provided in the form of
separate instruments and/or escrows , and may be delivered by the
respective owners (from time to time) of the lots within the I
plat, provided that the aggregate amount of such security shall
never be less than the total amount of the security required
under this paragraph 9 and providing such owners agree in writing
to be bound by the terms of this agreement.
10 . 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 :
c/o Opus Corporation
Attn: Law Department
800 Opus Center
9900 Bren Road East
Minnetonka, MN 55343
Telephone: (612) 936-4444
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' MAILING ADDRESS: c/o Opus Corporation
Attn : Law Department
P.O. Box 150
Minneapolis, MN 55440
' 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
11. Other Special Conditions.
' A. Minor modifications in the easements dedicated
in the plat as reasonably deemed necessary by the City for
installation of the public improvements shall be granted by the
' Developer at no cost to the City.
B. The Developer agrees that construction of
improvements upon Lot 1 , Block 3 shall be permitted only if the
Developer can demonstrate to the reasonable satisfaction of the
City that development of the site can occur while maintaining the
' standard City setbacks from the roads and wetland.
C. The applicant shall obtain and comply with all
conditions of the Watershed District permit and DNR permit.
D. The Developer agrees to work with the City and
representatives of the Lutheran Church of the Living Christ to
' reasonably resolve the special assessment concerns for the church
property.
' E. Drainage easements necessary for the wetland
areas on Lot 1, Block 1 as determined by the approved site plan
shall be recorded with Carver County .
12. 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.
- - - END 0 F SPECIAL CONDITIONS C AL COND ONS - - -
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CITY OF CHANHASSEN
BY:
Thomas L. Hamilton, Mayor
(SEAL)
BY: ,Don Ashworth, City Manager
ALSCOR INVESTORS JOINT VENTURE NO. 2
By
ALSCOR INVESTORS JOINT VENTURE, its '
General Partner
By
OPUS CORPORATION, its General Partner
BY:
Its '
STATE OF MINNESOTA )
( ss.
COUNTY OF CARVER )
On this day of , 1988, before me, a
Notary Public within and for said County , personally appeared
Thomas L. Hamilton and Don Ashworth, to me personally known, who
being each by me duly sworn did say that they are respectively
the Mayor and City Manager of the municial corporation named in
the foregoing instrument, and that the seal affixed to said
instrument is the corporate seal of said municipal corporation,
and that said instrument was signed and sealed in behalf of said
municipal corporation by authority of its City Council and said
Thomas L. Hamilton and Don Ashworth acknowledged said instrument
to be the free act and deed of said municipal corporation.
Notary Public
SP-5
STATE OF MINNESOTA )
( ss .
COUNTY OF
' On this day of , 1988 , before me, a
Notary Public within and for said County, personally appeared
, the of
' OPUS CORPORATION , a Minnesota corporation, to me personally
known, who, being duly sworn by me did say that said corporation
is a General Partner of ALSCOR INVESTORS JOINT VENTURE, a
' Minnesota General Partnership, which is a General Partner of
ALSCOR INVESTORS JOINT VENTURE NO. 2 , a Minnesota General
Partnership, one of the parties named in the foregoing instru-
ment, and that said instrument was signed and sealed as a free
act and deed of said general partnership.
Notary Public
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DRAFTED BY:
' City of Chanhassen
690 Coulter Drive
P.O. Box 147
Chanhassen, MN 55317
( 612 ) 937-1900
SP-6
CITY OF CHANHASSEN
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. '
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 , fur-
nished to the City, and approved by the City Engineer.
5 . License. The Developer hereby grants the City, its
agents, 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
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are issued, an erosion control plan shall be implemented,
inspected, and approved by the City. The City may impose addi-
tional erosion control requirements if they would be beneficial .
All areas 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 seeded areas shall be fer-
tilized, mulched, and disc anchored as necessary for seed reten-
tion. The parties recognize that time is of the essence in control-
' ling erosion. If the Developer does not comply with the erosion
control plan and schedule of supplementary instructions received
from the City, the City may take such action as it deems appro-
priate to control erosion at the Developer ' s expense. The City
will 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 devel-
opment will be allowed and no building permits will be issued
unless the plat is in full compliance with the erosion control
requirements. Erosion control needs to be maintained until vege-
tative cover has been restored, even if construction has been
completed and accepted. After the site has been stabilized to
where in the opinion of the City there is no longer a need for
erosion control, the City will remove the erosion control measures.
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 resulted from construction work by the
Developer, its agents or assigns.
8. Acceptance and Ownership of Public Improvements.
Upon completion and acceptance by the City of the work and
construction 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 satisfactorily completed in accordance
with the approved plans and specifications. Final acceptance of
the public improvements shall be by City Council resolution.
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 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 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 depo-
sited with the District Court, except that the Court shall retain
jurisdiction to determine attorneys ' fees.
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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. Furthermore, to the extent
that a subsequent owner of any of the lots within the plat
assumes in writing the obligations of the Developer under this
Contract which relate to said lot and provides the required
security for said lot, the Developer shall be released from said
obligations.
J. Insurance. Developer shall take out and main-
tain 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 pro-
perty 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 I
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.
N. Variances. By approving the plat, with the
exception of Lot 1 , Block 3 , the Developer represents that all
lots in the plat are buildable without the need for variances
from the City' s ordinances .
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0. Compliance with Laws , Ordinances and Regulations.
In the development of the plat the Developer shall comply with
all laws, ordinances , and regulations of the following authorities:
' 1 . City of Chanhassen;
2 . State of Minnesota, its agencies, departments and
commissions;
' 3 . United States Army Corps of Engineers;
4 . Watershed District (s ) ;
5 . Metropolitan Government, its agencies , departments and
commissions.
' P. Proof of Title. Upon request, the Developer
shall furnish the City with evidence satisfactory to the City
that it has the authority of the fee owners and contract for deed
purchasers to enter into this Development Contract.
' - - - END OF GENERAL CONDITIONS - - -
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