1f Development Contract Powers Place and Powers Place 2nd Addition, Proj 95-4
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CITY OF
CHANHASSEN
MEMORANDUM
TO: Anita Benson, City Engineer
90 City Cmter Drive, PO Box 147
ChanhdSsm, Minnesota 55317
Phone 612.937.1900
General Fax 612.937.5739
Engineeri11g Fax 612.937,9152
flublic Safety Fax 612.934.2524
Wtb www.ci.cbanhdSsen.mn.us
FROM:
Dave Hempel, Assistant City Engineer j).1 / ~
July 8. 1998
DATE:
SUBJ:
Consider Reassignment of Development Contract for Powers Place
and Powers Place 2nd Addition - Project No. 95-4
The City has received a request from TSM Development, Inc. for reassignment of
the development contract for Powers Place and Powers Place 2nd Addition from
Greatland Homes Corporation. Phase I of the development has been completed.
Phase II is proposed to be constructed this year by TSM Development, Inc. An
amendment to the development contract (Addendum "An) was approved by the
City Council last December. The addendum extended the time allotted to
complete Phase II improvements to November 15, 1999. Staff has prepared a
document (Attachment 1) whereby allowing this reassignment of the development
contract to occur. As you will note on Page I. a blank space has been left for the
document recording number for Addendum "An which was recorded July 8.1998.
The document number will be filled in before the applicants and City sign the fmal
document.
Paragraph 21 K of the General Conditions of the development contract authorizes
the City Council to approve the assignment of the development contract
Therefore, it is recommended that the City Council approve the assignment of the
development contract for Powers Place and Powers Place 2nd Addition from
Greatland Homes Corporation to TSM Development, Inc. contingent upon receipt
of $150 from either Greatland Homes or TSM Development, Inc. for
administration and recording fees for Addendum "An and Assignment of
Development Contract
IAl ENGINEERING COPY
ed jrns
Assignment dated July 13. 1998.
Letter dated July 6, 1998 from TSM Development, Inc.
Letter dated July 2,1998 from David Hempel.
Location map.
In No.
Attachments: 1.
roved by Clty Engineer 2.
te/-9-9B ~ 3.
Iroved by City Council 4.
te
c:
Mike Kampmeyer, Greatland Homes Corporation
Steve Schmitt, TSM Development
g:'eng\projccts\powcrs'considcr reassignment.doc
Ile City of Cbanhasse1l. A growing community with clean lakes, quality schools, a cbanning downtown, thriving businesses, and beautiful parks. A great place to live, work, and play
ASSIGNMENT
AGREEMENT dated July 13, 1998,by, between, and among the CITY OF
CHANHASSi!:N, a Minnesota municiplUcorporation ("City"); GQ~A ~~ HOMES
CORPORATION, ~Minneso.~ corporation (tbe "Qeveloper"); anq TSM DEVELOPMENT,
INC., a Minnesota corporatiQll (the ,"Successor Oeveloper''). ,.
A. The City and the Developer have entered into a Development Contract for
POWERS PL}\CE and PO\VERSPLACE SECOND ADDmON dated April 10, 1995, recorded
with the Carver CountyReC~rder'~office asDocumtntN6.181600.Pursuantto an Assignment
dated November 13, 1995;~eCordedJanu8ry 2~,l99~as.DOOmnent No. 190350, the City and the
Developer have .also enteIed into. art Addendwn"'A" to, the Dtvelbpment COntract dated
December 8, 1997, reCortJed,' July 8~ 1998 with.tIle CarVer County R~r'lJ office as Document
, .,' ..:.", _, -t<r..' ~ "<- , -, ;'", ,'- , "" _,' ".
No. .' TheDevel()p~llt Contiact and Addenduin "A" &re'hereinafter
collectively the "DeveloJ>merttContract". .
B. The Developer has asked the City to approve the assignment of its rights and
obligations under the Development Contract to the Successor Developer.
C. Paragraph 21 K of the General. conditions of the Development Contract authorizes
the City to approve the, assipmentof the Development Contract
-. . ,
NOW, THEREFORE,INCONSIDERA110NOF THEIR MUTUAL COVENEN'rS
THE PARTIES AGREE AS FOLLOWS:
1
it
1. ASSIGNMENT. The Developer's rights and obligations under the Development
Contract are assigned to the Successor Developer subject to the terms of this Assignment. The
Successor Developer accepts the assignment and agrees to be bound by its terms.
2. EFFECTIVE DATE OF ASSIGNMENT. This Assignment shall be effective
when the Successor Developer furnishes the City the security required by the Development
Contract.
3. BINDING EFFECT/RECORDING. This Assignment may be recorded against
the title to the land described in Exhibit "A" of the Development Contract and is binding upon the
parties, their successors, heirs, and assigns.
CITY OF CHANHASSEN
BY:
Nancy K. Mancino, Mayor
AND:
Don Ashworth, City Manager/Clerk
GREATLAND HOMES CORPORATION
BY:
Its President
TSM DEVELOPMENT, INe.
BY:
Its
STATE OF MINNESOTA)
(ss.
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me this _ day of
1998, by Nancy K. Mancino and by Don Ashworth, the Mayor and City Manager/Clerk of the
City of Chanhassen, a Minnesota municipal corporation, on behalf of the corporation and
pursuant to the authority granted by its City Council.
2
STATE OF MINNESOTA )
(ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of
1998, by the
of GREA TLAND HOMES CORPORATION, a Minnesota corporation, on behalf of the
corporation.
NOTARY PUBLIC
STATE OF MINNESOTA )
(ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of
1998, by the
of TSM DEVELOPMENT, INC., a Minnesota corporation, on behalf of the corporation.
NOTARY PUBLIC
~ ;, . .
DRAFTED BY:
City of Chanhassen
690 City Center Drive
Chanhassen, MN 55317
Telephone: 612-937-1900
3
7 ~ .z,e'Ve.t01JLYtl~1 .)~C.
112 tlt)ooroe .street
cAookAI ~ f;JOJ
July 6, 1998
City of Chanhassen
690 City Center Drive
P.O. Box 147
Chanhassen, MN 55317
Attn: Mr. David C. Hempel
Dear Mr. Hempel,
Per your request I am writing to ask that you take the required action to assign the
Development Contract for Phase I and Phase II Powers Place to TSM Development, Inc.
Please note that the proper name is as follows TSM Development, Inc. a Minnesota
Corporation.
Prior to your Council Meeting of July 13th I will forward to your office Letters of
Credit for Landscaping and Phase II improvements.
Should you have any further questions please feel free to contact me at 576-9121.
V1\:r~~
&\11 Of tRlt\RlSst."
m~@~~~~\ID
Jl)L 0 g '\998
t"Q\'itl~ Di~l.
Steven A. Schmitt
df-?
CITY OF
CHANHASSEN
690 City Cmt(/' Drive, PO Box 147
Chanhassm, Minnesota 55317
Phone 612.937.1900
Gm(/'af Fax 612.937.5739
Engineering Fax 612.937.9152
Public Safety Fax 612.934.2524
web www.ci.chanhassen.mn.us
..",
."....,
July 2, 1998
VIA FACSIMILE
Mr. Steve Schmitt
TSM Development
22 Monroe Street
Anoka, MN 55303
Re Powers Place 1st and 2nd Addition - Project No. 95-4
Dear Mr. Schmitt:
This letter is a follow up to our telephone conversations regarding issuance of building permits
in Phase I and the development of Phase II. Currently, the project is in violation of the
development contract and therefore no building permits are being issued. The landscaping in
Phase I has not been completed and the security (bond) to guarantee the landscape
improvements for both phases has expired. In addition, the security for erosion control
measures and site restoration in Phase II has also expired. In order for the City to issue
building permits in Phase I it is necessary for you or Mr. Kampmeyer to supply the City with a
landscape bond in the amount of $16,500.00 to guarantee the landscaping in both phases. The
bond shall be for two years. The landscaping in Phase I must also be completed by September
15. 1998 or permits will be held in both phases. Building permits in Phase II cannot be issued
without the site being graded, utilities instaIIed and tested. and the street paved with a
bituminous surface. The City will authorize a notice to proceed with Phase II improvements
after receipt of security (letter of credit) in the amount of $8,000, the development contract
reassigned to you from Greatland Homes and after a pre construction meeting is held. The
reassignment of the development contract requires City Council action. I have scheduled this
for the July 13, 1998 meeting contingent upon receipt of a letter from you requesting the
reassignment. The letter should be addressed to my attention and submitted to me by Tuesday,
July 7, 1998. Please supply me with your company's full name and legal standing. Le. a
Minnesota corporation. There is a $100 application fee payable to the City for preparing and
recording of the reassignment document.
In reviewing the project file it appears the Watershed District permit will need to be extended
as well. I have enclosed a copy of the permit for your convenience. If you have any questions,
feel free to contact me.
Sincerely.
CITY OF CHANHASSEN
,(j)~~/<< /'
David C. Hempel
Assistant City Engineer
Enclosures
c: Anita Benson. City Engineer
Sharmin AI-Jaff, Planner II
Steve Kirchman, Building Official
:/Ie;::.
g:\englpmjects\powers\schmitt letter.doc
The City of Chanhassm. A growing community with clean lakes. quality schools. .1 channing downtown, thriving businesses. and beautiful pilrkS. A gr(,lt pllce to live, work, and p,
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