1g-2. Approve Development Contract and Construction Plans & Specs for Pioneer Pass Project
CITY OF
CIlANHASSEN
7700 Markel Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspecllons
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
1.~-~
MEMORANDUM
<?O.
TO: Paul Oehme, Director of Public Works/City Engineer \ 6
Alyson Fauske, Assistant City Engineer ",-L
(AT O~ .
FROM:
DATE:
September 25, 2006
SUBJ:
Approve Development Contract and Construction Plans and Specifications
for Pioneer Pass- Project No. 06-16
(Simple Majority Vote Required)
The attached development contract incorporates the conditions of approval for the final plat
and construction plans and specifications. A $1,817,949.21 financial security is required to
guarantee compliance with the terms of the development ,<pntract relating to the installation
of public streets and utilities, one-year of public street t operating costs, engineering,
surveying, inspection, landscaping and payment of speci sments.
The cash fees for this project total $217,506.24. A bI.'
page SP-4 0 ev 0 ment contract. City funds
watermain ove
f the cash fee is shown on
to reimburse the trunk
The applicant
review and C
flexibility to a
modify the plans'
tions for staff
ant staff the
's engineer to
Staff recomme
September 1, 2
September 25, 200
1.
c:
G:\ENG\PROJEcrS\P-S\Pioneer Pass (flea
The City of Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play.
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
PIONEER PASS .
DEVELOPMENT CONTRACT
(Developer Installed Improvements)
TABLE OF CONTENTS
SPECIAL PROVISIONS
PAGE
1. REQUEST FOR PLAT APPROV AL............................................................................SP-I
2. CONDITIONS OF PLAT APPROVAL ........................................................................SP-I
3. DEVELOPMENT PLANS ..................................... ...... ............... .................... .............. SP-I
4. IMPROVEMENTS............................. ........................... .................................. ...... ........ SP-2
5. TIME OF PERFORMANCE............................ .......................... .............. ..................... SP-2
6. SECURITy.................................................................................................................... SP- 2
7. NOTICE... ........... ............ ............................................. ............. ...................... ....... ..... ...SP-3
8. OTHER SPECIAL CONDITIONS ..................... ............................................. .... ..... ..... SP-3
9. GENERAL CONDmONS.................................... ..................... ............ ................... .... SP-8
GENERAL CONDITIONS
1. RIGlIT TO PROCEED..................................................................................... .......... ..GC-I
2. PHASED DEVELOPMENT......................................................................................... GC-I
3. PRELIMINARY PLAT STATUS..... ..................................... .............. ........... ............. GC-I
4. CHANGES IN OFFICIAL CONTROLS ......................................................................GC-I
5. IMPROVEMENTS .......................................................................................................GC-I
6. IRON MONUMENTS...... ...... ...................................................................................... GC-2
7. UCENSE ........... ............................... ............................................................................ GC-2
8. SITE EROSION AND SEDIMENT CONTROL .........................................................GC-2
8A. EROSION CONTROL DURING CONSTRUCTION OF A DWELLING
OR OTHER BUILDING............................................................................ ....... GC-2
9. CLEAN UP ........... ............................... ....................................................... ..... ............. GC-3
10. ACCEPTANCE AND OWNERSHIP OF IMPROVEMENTS....................................GC-3
11. CLAIMS.. .... ........ ... ........ .... ... ...... .......... ......... ............... ... .......... ...................... ............. GC-3
12. PARK DEDICATION ....... ................................................... ................................. ....... GC-3
13. LANDSCAPING ..........................................................................................................GC-3
14. WARRANTY ...............................................................................................................GC-4
15. LOT PLANS .................................................................................................................GC-4
16. EXISTING ASSESSMENTS .... ......................... ............. ..................................... ........ GC-4
17 . HOOK-UP CHARGES................................................................................................. GC-4
18. PUBLIC STREET LIGlITING .......................... ......................................... ......... ......... GC-4
19. SIGNAGE .....................................................................................................................GC-5
20. HOUSE PADS...... ..................... ............ .............. ........ ....... .............. ..................... .......GC-5
21. RESPONSffiILITY FOR COSTS... .................. ..... ............................... ........................ GC-5
22. DEVELOPER'S DEFAULT ......................................................................................... GC-6
22. MISCELLANEOUS
A. Construction Trailers........................... ............. ................................................ GC-6
B. Postal Service.................... ................ ................................................................ GC-7
C. Third Parties...................................................................................................... GC-7
D. Breach of Contract...... ...................... ................................................................ GC-7
1
E. Severability....................................................................................................... GC-7
F. Building Permits.................................... ........................................................... GC-7
G. Waiversl Amendments .................. ............... .......... .............................. ....... .......GC-7
H. Release.............................................................................................................. GC-7
I. Insurance........................................................................................................... GC-7
J. Remedies........................................................................................................... GC-8
K. Assignability..................................................................................................... GC-8
L. Construction Hours. ....... ........................ .......... ............... .......... ........... ............. GC-8
M. Noise Amplification.......................................................................................... GC-8
N. Access................. ............ ...................... ........... ................... ....................... ....... GC-8
O. Street Maintenance. ....... ... ..... .............. ..... .... ......... ...... ........... .... ..... ..... ....... ...... GC-8
P. Storm Sewer Maintenance ...... ............... ..... ........................ ............. .......... ....... GC-9
Q. Soil Treatment Systems ............ ............................ ..... .......... ...... ............... ........ GC-9
R. Variances........................................................................................................... GC-9
S. Compliance with Laws, Ordinances, and Regulations......................................GC-9
T. Proof of Title..... .... ......... .... ..... ... ... ....... ....... ..... ...... ...... ...... .... ... ....... ...... .... ..... ..GC-9
U. Soil Conditions ............................................................................................... GC-l 0
V. Soil Correction....................................... .......................... ......... ...................... GC-IO
W. Haul Routes.......................................................................................... ....... ........ GC-l 0
X. Development Signs......................... .................... ....................... .......................... GC-l 0
Y. Construction Plans ........... ....................... ......... ......... ....... ..... ........ ......... ... ... .... .... GC-l 0
Z. As-Built Lot Surveys ........................... ................................................................ GC-ll
ii
CITY OF CHANHASSEN
DEVELOPMENT CONTRACT
(Developer Installed Improvements)
PIONEER PASS
SPECIAL PROVISIONS
AGREEMENT dated September 25, 2006 by and between the CITY OF CHANHASSEN,
a Minnesota municipal corporation (the "City"), and, Pioneer Pass, LLC, a Limited Liability
Company (the "Developer").
1. Request for Plat Approval. The Developer has asked the City to approve a plat for
PIONEER PASS (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, furnish the security required by it, and record the plat with
the County Recorder or Registrar of Titles within 30 days after the City Council approves the plat.
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:
Final plat approved September 25,2006, prepared by James R. Hill, Inc.
Plan B:
Grading, Drainage and Erosion Control Plan dated September 1, 2006, prepared by
James R. Hill, Inc.
Plan C:
Plans and Specifications for Improvements dated September 1, 2006, prepared by
James R. Hill, Inc.
Plan D:
Landscape Plan dated September 1, 2006, prepared by James R. Hill, Inc.
SP-l
4. Improvements. The Developer shall install and pay for the following:
A. Sanitary Sewer System
B. WaterSystem
C. Storm Water Drainage System
D. Streets
E. Concrete Curb and Gutter
F. Street Lights
G. Site GradingfRestoration
H. Underground Utilities (e.g. gas, electric, telephone, CATV)
1. Setting of Lot and Block Monuments
J. Surveying and Staking
K. Landscaping
L. Erosion Control
5. Time of Performance. The Developer shall install all required improvements
except for the wear course on public streets by November 15, 2006. The Developer may, however,
request an extension of time from the City Engineer. 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.
6. 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 in the form attached
hereto, from a bank acceptable to the City, or cash escrow ("security") for $1,817,949.21. The
amount of the security was calculated as 110% of the following:
Site GradinglErosion ControlJRestoration
Sanitary Sewer
Watermain
Storm Sewer, Drainage System, including cleaning and maintenance
Streets
Sub-total, Construction Costs
Engineering, surveying, and inspection (7% of construction costs)
Landscaping (2% of construction costs)
Street lights (6 lights x $1,200/light)
Sub-total, Other Costs
Total Cost of Improvements
$ 255,098.25
$ 214,960.30
$ 177,492.25
$ 236,980.10
$ 655,084.79
$ 1,509,615.69
$ 105,673.10
$ 30,192.31
$ 7.200.00
$ 143,065.41
$ 1.652.681.10
I Letter of Credit Amount (110% of Improvements)
$ 1,817,949.21
SP-2
This breakdown is for historical reference; it is not a restriction on the use of the security. The
security shall be subject to the approval of the City. The City may draw down the security, without
notice, for any violation of the terms of this Contract. If the required public improvements are not
completed at least thirty (30) days prior to the expiration of the security, the 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 obligations are paid, but in no
case shall the security be reduced to a point less than 10% of the original amount until (1) all
improvements have been completed, (2) iron monuments for lot comers have been installed, (3) all
financial obligations to the City satisfied, (4) the required "record" plans have been received by the
City, (5) a warranty security is provided, and (6) the public improvements are accepted by the City.
7. Notice. 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:
John Knoblach
Pioneer Pass, ILC
1450 Knob Hill Lane
Excelsior, MN 55331
Phone: 612-490-4540 or 952-474-5662
And copied to:
Terry Schneider
Project Developers
600 South Highway 169, Suite 1580
St. Louis Park, MN 55426
Phone: 612-720-7667
Notices to the City shall be in writing and shall be either hand delivered to the City Manager, or
mailed to the City by certified mail in care of the City Manager at the following address:
Chanhassen City Hall, 7700 Market Boulevard, P.O. Box 147, Chanhassen, Minnesota 55317,
Telephone (952) 227-1100.
8. Other Special Conditions.
A. SECURITIES AND FEES
A $1,817,949.21 letter of credit or escrow for the developer-installed improvements, the
$217,506.24 cash administration fee and the fully-executed development contract must be
submitted and shall be submitted prior to scheduling a pre-construction meeting. The cash fee
was calculated as follows:
SP-3
Administration fee: ($1,000,000 at 2.5%) + ($509,615.69 at 1.5%) =
Arterial Collector Fee:
Street lighting charge: 6 lights x $300.00/light =
Attorney fee for review and recording final plat =
GIS fee: $25 (plat) + ($lO/parcel x 60 parcels) =
Surface Water Management fee:
Pro-rated cost for the 2005 AUAR
$ 32,644.24
$ 42,408.00
$ 1,800.00
$ 450.00
$ 625.00
$ 115,930.00
$ 23.649.00
Total, Cash Fee = $ 217,506.24
B. PLANNING DEPARTMENT CONDITIONS:
1. A 30 dBA attenuation shall be provided by the building design and construction along
with year-round climate control for the homes adjacent to the T.H. 312 right-of-way.
2. The developer shall pay $23,649.00 as their portion of the 2005 AUAR.
C. ENGINEERING DEPARTMENT CONDmONS:
1. The Arterial Collector Roadway Fee of $2,4oo/developable acre will need to be paid at
the time of final plat recording.
2. The property was assessed $301,044.41 for the 2005 MUSA project. This assessment
will be reallocated to the lots within the final plat area, as follows:
$301,044.41 + 81 units (preliminary plat) = $3,716.60/unit
Amount to be reassessed to lots within this final plat:
$3,716.60/unit x 53 units = $ 196,979.78
Amount to be assessed to Outlot C (future development):
$3,716.60/unit x 28 units = $104,064.79
3. Outlot A shall be dedicated to the City for drainage, utility and public street purposes.
4. Before site grading commences, the existing building and driveway access off Pioneer
Trail onto the property must be removed.
5. An easement is required from the appropriate property owner for any off-site grading.
6. If importing or exporting material for development of the site is necessary, the
applicant will be required to supply the City with detailed haul routes.
7. The grading along the rear lot lines in Block 2 must be adjusted so that there is
positive drainage from the back of the building pads along Creek Ridge Lane.
SP-4
8. The rear-yard drainage and utility easements in Block 2 must be adjusted accordingly
so that they encompass drainage swales that carry runoff from three or more lots.
9. Ground slopes shall not exceed 3:1.
10. Extend the silt fence along the south property line.
11. The applicant shall apply for and obtain permits from the appropriate regulatory
agencies (e.g., Riley-Purgatory-Bluff Creek Watershed District, Minnesota Pollution
Control Agency (National Pollutant Discharge Elimination System Construction
Permit), Minnesota Department of Natural Resources (dewatering permit), Army Corps
of Engineers) and comply with their conditions of approval.
12. Retaining walls must be designed by a structural engineer registered in the State of
Minnesota and require a building permit if greater than 4 feet in height.
13. Storm sewer calculations and drainage map have been submitted. Staff will verify that
the storm sewer is designed to accommodate a lO-year, 24-hour storm event.
14. The developer must install storm sewer and work with MnDOT to route the drainage
at the low point of Bluff Creek Drive at Pioneer Trail.
15. The last public stormwater structure that is road-accessible prior to discharging to a
water body must have a 3-foot sump.
16. Future utility service and access to the property to the east must to be determined prior
to final plat of Outlot C.
17. The property is also subject to sanitary sewer and water hook-up charges for all of the
lots. The 2006 trunk utility hook-up charges are $1,575 per unit for sanitary sewer and
$4,078 per unit for water. The 2006 SAC charge is $1,625 per unit.
18. Homes with a lowest floor elevation of 935 feet or lower will likely require in-home
pressure reducing valves. This will be determined based on field pressure readings.
19. The sanitary sewer behind Lots 1 through 5, Block 1 can be shallowed to a minimum
depth of 7 feet.
20. The City will reimburse the developer the cost difference between an eight inch
lateral and 12 inch trunk.
21. The City will not reimburse engineering costs for the trunk watermain oversizing.
22. An eight inch lateral shall be stubbed to the east of Bluff Creek Drive at
approximately station 13+00 to provide future service to the remnant parcel and area
turned back by MnDOT (if any).
SP-5
23. All of the utility improvements are required to be constructed in accordance with the
City's latest edition of Standard Specifications and Detail Plates. The applicant is also
required to enter into a development contract with the City and supply the necessary
financial security in the form of a letter of credit or cash escrow to guarantee installation
of the improvements and the conditions of final plat approval. The applicant must be
aware that all public utility improvements will require a preconstruction meeting before
building permit issuance
D. FIRE MARSHAIL CONDmONS:
1. A lO-foot clear space must be maintained around fire hydrants, i.e., street lamps, trees,
shrubs, bushes, Xcel Energy, Qwest, cable TV and transformer boxes. This is to ensure
that fire hydrants can be quickly located and safely operated by firefighters. Pursuant to
Chanhassen City Ordinance #9-1.
2. Fire apparatus access roads and water supply for fire protection is required to be
installed. Such protection shall be installed and made serviceable prior to and during
the time of construction except when approved alternate methods of protection are
provided.
3. Temporary street signs shall be installed on street intersections once construction of the
new roadways allows passage of vehicles. Pursuant to 2002 Minnesota Fire Code
Section 501.4.
4. Fire apparatus access roads shall be designed and maintained to support the imposed
load of fire apparatus and shall be serviced so as to provide all-weather driving
capabilities. Pursuant to Minnesota Fire Code Section 503.2.3.
5. Submit proposed street names to Chanhassen Building Official and Chanhassen Fire
Marshal for review and approval.
6. Fire hydrant spacing is unacceptable. Locate fire hydrants at intersections and in cul-de-
sacs and at 300-foot spacing. Most spacing is in excess of 400 to 500 feet at this time.
Submit revised fire plans to Fire Marshal for review and approval.
E. PARKS AND RECREATION DEPARTMENT CONDITIONS:
1. The developer shall designate a 4.72 acre neighborhood park site, Outlot D. This
property shall be transferred to the city by warranty deed with 3.79 acres of the site
being dedicated by the applicant/owner and the remaining 0.93 acres being purchased
by the City of Chanhassen. The city shall compensate the owner/applicant $218,550
in total compensation for said 0.93 acres.
2. The developer shall rough grade and cover seed the park site and construct a 20-stall
parking lot for an additional not-to-exceed payment of. $50,000 from the city. The
parking lot shall include insurmountable curb. Construction plans for all improvements
SP-6
within the borders of the park shall be submitted to the Park & Recreation Director for
approval prior to initiating construction of these improvements. All material and labor
costs are reimbursable. Design, engineering, and testing services associated with these
improvements shall be provided by the applicant.
F. WAlERRESOURCES CONDmONS:
1. The total SWMP fee shall be paid to the City at the time of final plat recording. The
estimated total SWMP fee at this time is $115,930.00.
2. Wetland replacement shall occur in a manner consistent with Chanhassen City Code
and the Minnesota Wetland Conservation Act (MR 8420).
3. A wetland buffer 16.5 to 20 feet in width (with a minimum average of 16.5 feet) shall
be maintained around all Ag/Urban wetlands. Wetland buffer areas shall be preserved,
surveyed and staked in accordance with the City's wetland ordinance. The applicant
shall install wetland buffer edge signs, under the direction of City staff, before
construction begins and shall pay the City $20 per sign. All structures shall be set back
40 feet from the edge of the wetland buffer. The wetland buffer setback shall be shown
on the plans.
4. No alterations shall be permitted within the primary corridor or within the first 20 feet
of the setback from the primary corridor without a variance. All structures must meet
the 40-foot setback from the primary corridor.
5. The applicant shall demonstrate that storm water management along the southwest
property line of Lots 1-5, Block 2 is adequate to prevent drainage issues for future
homeowners.
6. Energy dissipation shall be provided at the flared-end section inlet to Pond 2 within
24 hours of installation. Additional blanket shall be provided for storm sewer
installation area for inlet infrastructure to Pond 2. The access area shall be protected
with erosion control blanket upon the establishment of final grade.
7. Perimeter control (silt fence) shall be installed prior to grading along the south side of
the Bluff Creek Drive and CSAH 14 (pioneer Trail) intersection. All silt fences near
flared-end sections shall be installed up and around flared-end sections so water is not
discharged against the silt fence, causing it to fail.
G. CITY FORESlER CONDmONS:
1. The developer shall revise the landscape plan dated 9/1/06 on the park property as noted
on the red-lined plans: change five of the ABH to Hackberry, change note for 10 BHS
to 10 SSC, and create an opening within the landscaping along cul-de-sac.
SP-7
2. The applicant shall install the total required buffer yard along Collector Road D or show
proof of berm height of 3 feet or higher along the length of the street and adjust the
quantities of understory and shrubs accordingly.
3. The applicant shall develop a restoration plan including native plants for the Bluff Creek
Overlay district north of Block 1. The plant species shall be selected from the Bluff
Creek Management Plan Appendix C. The final plan must be reviewed and approved
by the city before installation.
4. Signage for the Bluff Creek Overlay District must be posted on every other property
comer where residential yards meet the primary zone.
5. The property owner may donate Outlots B and E to the City, or if retained under private
ownership, dedicate a conservation easement and a drainage and utility easement over
these Outlots.
6. Tree preservation fencing must be installed at the limits of tree removal.
9. General Conditions. The general conditions of this Contract are attached as
Exhibit "B" and incorporated herein.
SP-8
CITY OF CHANHASSEN
BY:
Thomas A. Furlong, Mayor
(SEAL)
AND:
Todd Gerhardt, City Manager
Pioneer Pass, ILC:
BY:
John Knoblach, Chief Manager
STATE OF MINNESOTA )
( ss.
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me this _ day of
2005, by Thomas A. Furlong, Mayor, and by Todd Gerhardt, 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.
NOTARYPUBUC
STATEOFMINNESOTA)
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of
2005, by John Knoblach, Chief Manager of Pioneer Pass, ILC, a Limited Liability Company, on
behalf of the company.
NOTARY PUBUC
DRAFTED BY:
City of Chanhassen
7700 Market Boulevard
P.O. Box 147
Chanhassen, MN 55317
(952) 227-1100
SP-9
EXHIBIT "A"
TO
DEVELOPMENT CONTRACT
LEGAL DESCRIPTION OF SUBJECT PROPERTY:
The East Half of the Northeast Quarter of Section 27, Township 116 North, Range 23 West, Carver
County, Minnesota, EXCEPT that part platted as MINNESOTA DEPARTMENT OF
TRANSPORTATION RIGHT OF WAY PLAT NO. 10-20, according to the recorded plat thereof,
Carver County, Minnesota.
MORTGAGE HOLDER CONSENT
TO
DEVELOPMENT CONTRACT
which holds a mortgage on the subject property, the development of which is governed by the
foregoing Development Contract, agrees that the Development Contract shall remain in full force
and effect even if it forecloses on its mortgage.
Dated this _ day of
,20_0
STATE OF MINNESOTA )
( ss.
COUNTY OF
)
The foregoing instrument was acknowledged before me this _ day of
20_, by
NOTARYPUBUC
DRAFTED BY:
City of Chanhassen
7700 Market Boulevard
P.O. Box 147
Chanhassen, MN 55317
(952) 227-1100
FEE OWNER CONSENT
TO
DEVELOPMENT CONTRACT
fee owners of all or part of the subject property, the development of 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 subject property owned by
them.
Dated this _ day of
,20 .
ST ATE OF MINNESOTA )
( ss.
COUNTY OF
)
The foregoing instrument was acknowledged before me this _ day of
20_, by
NOTARYPUBUC
DRAFTED BY:
City of Chanhassen
7700 Market Boulevard
P.O. Box 147
Chanhassen, MN 55317
(952) 227-1100
IRREVOCABLE LETTER OF CREDIT ,
No.
Date:
TO: City of Chanhassen
7700 Market Boulevard, Box 147
Chanhassen, Minnesota 55317
Dear Sir or Madam:
We hereby issue, for the account of
Irrevocable Letter of Credit in the amount of $
on the undersigned bank.
(Name of Developer) and in your favor, our
, available to you by your draft drawn on sight
The draft must:
a) Bear the clause, "Drawn under Letter of Credit No.
2 , of (Name of Bank) It;
, dated
b) Be signed by the Mayor or City Manager of the City of Chanhassen.
c) Be presented for payment at
2
(Address of Bank)
, on or before 4:00 p.rn. on November 30,
This Letter of Credit shall automatically renew for successive one-year terms unless, at least forty-
five (45) days prior to the next annual renewal date (which shall be November 30 of each year), the Bank
delivers written notice to the Chanhassen City Manager that it intends to modify the terms of, or cancel, this
Letter of Credit. Written notice is effective if sent by certified mail, postage prepaid, and deposited in the
U.S. Mail, at least forty-five (45) days prior to the next annual renewal date addressed as follows:
Chanhassen City Manager, Chanhassen City Hall, 7700 Market Boulevard, P.O. Box 147, Chanhassen, MN
55317, and is actually received by the City Manager at least thirty (30) days prior to the renewal date.
This Letter of Credit sets forth in full our understanding which shall not in any way be modified,
amended, amplified, or limited by reference to any document, instrument, or agreement, whether or not
referred to herein.
This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw
may be made under this Letter of Credit.
This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and
Practice for Documentary Credits, mternational Chamber of Commerce Publication No. 500.
We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly
honored upon presentation.
BY:
Its
CITY OF CHANHASSEN
DEVELOPMENT CONTRACT
(Developer Installed Improvements)
ExmBIT "B"
GENERAL CONDITIONS
1. Right to Proceed. . Within the plat or land to be platted, the Developer may not
grade or othelWise 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 and fees have been received by the City, 3) the plat has been
recorded with the County Recorder's Office or Registrar of Title's Office of the County where the
plat is located, and 4) the City Engineer has issued a 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 multiphased 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. Park charges and
area charges for sewer and water referred to in this Contract are not being imposed on outlots, if
any, in the plat that are designated in an approved preliminary plat for future subdivision into lots
and blocks. Such charges will be calculated and imposed when the outlots are final platted into lots
and blocks.
3. Preliminary Plat Status. If the plat is a phase of a multi-phased preliminary plat,
the preliminary plat approval for all phases not final platted shall lapse and be void unless final
platted into lots and blocks, not outlots, within two (2) years after preliminary plat approval.
4. Changes in Official Controls. 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.
5. Improvements. The improvements specified in the Special Provisions of this
Contract shall be installed in accordance with City standards, ordinances, and plans and
specifications which have been prepared and signed by a competent registered professional
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engineer furnished to the City and approved by the City Engineer. The Developer shall obtain all
necessary permits from the Metropolitan Council Environmental Services and other pertinent
agencies before proceeding with construction. The City will, at the Developer's expense, have one
or more construction inspectors and a soil engineer inspect the work on a full or part-time basis.
The Developer shall also provide a qualified inspector to perform site inspections on a daily basis.
Inspector qualifications shall be submitted in writing to the City Engineer. The Developer shall
instruct its project engineer/inspector to respond to questions from the City fuspector(s) and to
make periodic site visits to satisfy that the construction is being performed to an acceptable level of
quality in accordance with the engineer's design. The Developer or his engineer shall schedule a
preconstruction meeting at a mutually agreeable time at the City Council chambers with all parties
concerned, including the City staff, to review the program for the construction work.
6. Iron Monuments. Before the security for the completion of utilities is released, all
monuments must be correctly placed in the ground in accordance with Minn. Stat. ~ 505.02, Subd.
1. The Developer's surveyor shall submit a written notice to the City certifying that the monuments
have been installed.
7. 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.
8. Site Erosion and Sediment Control. Before the site is rough graded, and before
any utility construction is commenced or building permits are issued, the erosion and sediment
control plan, Plan B, shall be implemented, inspected, and approved by the City. The City may
impose additional erosion and sediment 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 and sediment
control plan, seed shall be certified seed to provide a temporary ground cover as rapidly as possible.
All 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 and sediment transport. If
the Developer does not comply with the erosion and sediment control plan and schedule of
supplementary instructions received from the City, the City may take such action as it deems
appropriate to control erosion and sediment transport 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 development will be
allowed and no building permits will be issued unless the plat is in full compliance with the erosion
and sediment control requirements. Erosion and sediment control needs to be maintained until
vegetative 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
and sediment control, the City will authorize the removal of the erosion and sediment control, i.e.
hay bales and silt fence. The Developer shall remove and dispose of the erosion and sediment
control measures.
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Sa. Erosion Control During Construction of a Dwelling or Other Building. Before
a building permit is issued for construction of a dwelling or other building on a lot, a $500.00 cash
escrow or letter of credit per lot shall also be furnished to the City to guarantee compliance with
City Code ~ 7-22.
9. Clean up. The Developer shall maintain a neat and orderly work site and shall daily
clean, on and off site, dirt and debris, including blowables, from streets and the surrounding area
that has resulted from construction work by the Developer, its agents or assigns.
10. Acceptance and Ownership of 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. After completion of the improvements, a
representative of the contractor, and a representative of the Developer's engineer will make a final
inspection of the work with the City Engineer. 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 and the Developer and his engineer shall submit a written statement to the
City Engineer certifying that the project has been completed in accordance with the approved plans
and specifications. The appropriate contractor waivers shall also be provided. Pinal acceptance of
the public improvements shall be by City Council resolution.
11. Claims. In the event that the City receives claims from laborers, materialmen, or
others that work required by this Contract 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
Intetpleader 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 deposited with the
District Court, except that the Court shall retain jurisdiction to determine attorneys' fees.
12. Park Dedication. The Developer shall pay full park dedication fees in conjunction
with the installation of the plat improvements. The park dedication fees shall be the current amount
in force at the time of final platting pursuant to Chanhassen City Ordinances and City Council
resolutions.
13. Landscaping. Landscaping shall be installed in accordance with Plan D. Unless
otherwise approved by the City, trees not listed in the City's approved tree list are prohibited. The
minimum tree size shall be two and one-half (2~) inches caliper, either bare root in season, or
balled and burlapped. The trees may not be planted in the boulevard (area between curb and
property line). fu addition to any sod required as a part of the erosion and sediment control plan,
Plan B, the Developer or lot purchaser shall sod the boulevard area and all drainage ways on each
lot utilizing a minimum of four (4) inches of topsoil as a base. Seed or sod shall also be placed on
all disturbed areas of the lot. If these improvements are not in place at the time a certificate of
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occupancy is requested, a financial guarantee of $750.00 in the form of cash or letter of credit shall
be provided to the City. These conditions must then be complied with within two (2) months after
the certificate of occupancy issued, except that if the certificate of occupancy is issued between
October 1 through May 1 these conditions must be complied with by the following July 1st. Upon
expiration of the time period, inspections will be conducted by City staff to verify satisfactory
completion of all conditions. City staff will conduct inspections of incomplete items with a $50.00
inspection fee deducted from the escrow fund for each inspection. After satisfactory inspection, the
financial guarantee shall be returned. If the requirements are not satisfied, the City may use the
security to satisfy the requirements. The City may also use the escrowed funds for maintenance of
erosion control pursuant to City Code Section 7-22 or to satisfy any other requirements of this
Contract or of City ordinances. These requirements supplement, but do not replace, specific
landscaping conditions that may have been required by the City Council for project approval.
14. Warranty. The Developer warrants all improvements required to be constructed by
it pursuant to this Contract against poor material and faulty workmanship. The Developer shall
submit either 1) a warranty/maintenance bond for 100% of the cost of the improvement, or 2) a
letter of credit for twenty-five percent (25%) of the amount of the original cost of the
improvements.
A. The required warranty period for materials and workmanship for the utility
contractor installing public sewer and water mains shall be two (2) years from the date of final
written City acceptance of the work.
B. The required warranty period for all work relating to street construction, including
concrete curb and gutter, sidewalks and trails, materials and equipment shall be subject to two (2)
years from the date of final written acceptance.
C. The required warranty period for sod, trees, and landscaping is one full growing
season following acceptance by the City.
15. Lot Plans. Prior to the issuance of building permits, an acceptable Grading,
Drainage, Erosion Control including silt fences, and Tree Removal Plan shall be submitted for each
lot 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 development plans and City
Ordinance.
16. Existing Assessments. Any existing assessments against the plat will be re-spread
against the plat in accordance with City standards.
17. Hook-up Charges. The Developer also acknowledges overall sanitary sewer and
water trunk availability to the site and the hook-up charges established by the City as reasonable
compensation for oversizing costs previously incurred, as well as, long-term maintenance. Said
hook-up charges are collectible at time of building permit unless a written request is made to assess
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the costs over a four year term at the rates in effect at time of application. If paid with the building
permit, the party applying for the building permit is responsible for payment of these fees.
18. Public Street Lighting. The Developer shall have installed and pay for public
street lights in accordance with City standards. The public street lights shall be accepted for City
ownership and maintenance at the same time that the public street is accepted for ownership and
maintenance. A plan shall be submitted for the City Engineer's approval prior to the installation.
Before the City signs the final plat, the Developer shall pay the City a fee of $300.00 for each street
light installed in the plat. The fee shall be used by the City for furnishing electricity and
maintaining each public street light for twenty (20) months.
19. Signage. All street signs, traffic signs, and wetland monumentation required by the
City as a part of the plat shall be furnished and installed by the City at the sole expense of the
Developer.
20. House Pads. The Developer shall promptly furnish the City "as-built" plans
indicating the amount, type and limits of fill on any house pad location.
21. 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. This fee does not cover the City's cost for construction inspections.
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, three percent (3%) of construction costs for the first
$500,000 and two percent (2%) of construction costs over $500,000;
iii) if the cost of the construction of public improvements is over $1,000,000,
two and one-half percent (2~%) of construction costs for the first $1,000,000
and one and one-half percent (lY2%) of construction costs over $1,000,000.
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 6 of the
Special Provisions.
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B. In addition to the administrative fee, the Developer shall reimburse the City for
all costs incurred by the City for providing construction and erosion and sediment control
inspections. This cost will be periodically billed directly to the Developer based on the actual
progress of the construction. Payment shall be due in accordance with Article 2iE of this
Agreement.
C. 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 payor incur in consequence of such claims,
including attorneys' fees.
D. 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.
E. The Developer shall pay in full all bills submitted to it by the City for obligations
incurred under this Contract within thirty (30) days after receipt. 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 mayor may not have sold, until the bills
are paid in full. Bills not paid within thirty (30) days shall accrue interest at the rate of 8% per year.
F. In addition to the charges and special assessments 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.
G. Private Utilities. The Developer shall have installed and pay for the installation
of electrical, natural gas, telephone, and cable television service in conjunction with the overall
development improvements. These services shall be provided in accordance with each of the
respective franchise agreements held with the City.
H. The developer shall pay the City a fee established by City Council resolution,
to reimburse the City for the cost of updating the City's base maps, GIS data base files, and
converting the plat and record drawings into an electronic format. Record drawings must be
submitted within four months of final acceptance of public utilities. All digital information
submitted to the City shall be in the Carver County Coordinate system.
22. 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 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.
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23. 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. The City is not a guarantor of the Developer's obligations under this Contract. The City
shall have no responsibility or liability to lot purchasers or others for the City's failure to enforce
this Contract or for allowing deviations from it.
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. The City may
also issue a stop work order halting all plat development until the breach has been cured and the
City has received satisfactory assurance that the breach will not reoccur.
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. Building Permits. Building permits will not be issued in the plat until sanitary
sewer, watermain, and storm sewer have been installed, tested, and accepted by the City, and the
streets needed for access have been paved with a bituminous surface and the site graded and
revegetated in accordance with Plan B of the development plans.
G. 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.
H. 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 Manager will issue a Certificate of Compliance. Prior to the
issuance of such a certificate, individual lot owners may make as written request for a certificate
applicable to an individual lot allowing a minimum of ten (10) days for processing.
I. 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
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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 $500,000 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.
J. Remedies. Each right, power or remedy herein conferred upon the City is
cumulative and in addition to every other right, power or remedy, expressed 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.
K. 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.
L. Construction Hours. Construction hours for required improvements under this
contract shall be from 7:00 a.m. to 6:00 p.m. on weekdays, from 9:00 a.m. to 5:00 p.m. on
Saturdays with no such activity allowed on Sundays or any recognized legal holidays. Under
emergency conditions, this limitation may be waived by the consent of the City Engineer. Any
approved work performed after dark shall be adequately illuminated. If construction occurs outside
of the permitted construction hours, the Developer shall pay the following administrative penalties:
First violation
Second violation
Third & subsequent violations
$ 500.00
$ 1,000.00
All site development and construction must
cease for seven (7) calendar days
M. Noise Amplification. The use of outdoor loudspeakers, bullhorns, intercoms,
and similar devices is prohibited in conjunction with the construction of homes, buildings, and the
improvements required under this contract. The administrative penalty for violation of construction
hours shall also apply to violation of the provisions in this paragraph.
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 plat are accepted by the City. Warning signs shall be placed by
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the Developer when hazards develop in streets to prevent the public from traveling on same and
directing attention to detours. If streets become impassable, 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. Storm Sewer Maintenance. The Developer shall be responsible for cleaning and
maintenance of the storm sewer system (including ponds, pipes, catch basins, culverts and swales)
within the plat and the adjacent off-site storm sewer system that receives storm water from the plat.
The Developer shall follow all instructions it receives from the City concerning the cleaning and
maintenance of the storm sewer system. The Developer's obligations under this paragraph shall end
two (2) years after the public street and storm drainage improvements in the plat have been
accepted by the City. Twenty percent (20%) of the storm sewer costs, shown under section 6 of the
special provisions of this contract, will be held by the City for the duration of the 2-year
maintenance period.
Q. 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.
R. Variances. By approving the plat, the Developer represents that all lots in the
plat are buildable without the need for variances from the City's ordinances.
S. 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.
T. 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.
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U. Soil Conditions. The Developer acknowledges that the City makes no
representations or warranties as to the condition of the soils on the property or its fitness for
construction of the improvements or any other purpose for which the Developer may make use of
such property. The Developer further agrees that it will indemnify, defend, and hold harmless the
City, its governing body members, officers, and employees from any claims or actions arising out of
the presence, if any, of hazardous wastes or pollutants on the property, unless hazardous wastes or
pollutants were caused to be there by the City.
V. Soil Correction. The Developer shall be responsible for soil correction work on
the property. The City makes no representation to the Developer concerning the nature of
suitability of soils nor the cost of correcting any unsuitable soil conditions which may exist. On lots
which have no fill material a soils report from a qualified soils engineer is not required unless the
City's building inspection department determines from observation that there may be a soils
problem. On lots with fill material that have been mass graded as part of a multi-lot grading
project, a satisfactory soils report from a qualified soils engineer shall be provided before the City
issues a building permit for the lot. On lots with fill material that have been custom graded, a
satisfactory soils report from a qualified soils engineer shall be provided before the City inspects the
foundation for a building on the lot.
W. Haul Routes. The Developer, the Developer's contractors or subcontractors
must submit proposed haul routes for the import or export of soil, construction material,
construction equipment or construction debris, or any other purpose. All haul routes must be
approved by the City Engineer
X. DevelolJment Signs. The Developer shall post a six foot by eight foot
development sign in accordance with City Detail Plate No. 5313 at each entrance to the project.
The sign shall be in place before construction of the required improvements commences and
shall be removed when the requited improvements are completed, except for the final lift of
asphalt on streets. The signs shall contain the following information: project name, name of
developer, developer's telephone number and designated contact person, allowed construction
hours.
y. Construction Plans. Upon final plat approval, the developer shall provide the
City with two complete sets of full-size construction plans and four sets of ll"xl7" reduced
construction plan sets and three sets of specifications. Within four months after the completion of
the utility improvements and base course pavement and before the security is released, the
Developer shall supply the City with the following: (1) a complete set of reproducible Mylar
as-built plans, (2) two complete full-size sets of blue line/paper as-built plans, (3) two complete sets
of utility tie sheets, (4) location of buried fabric used for soil stabilization, (5) location stationing
and swing ties of all utility stubs including draintile cleanouts, (6) bench mark network, (7) digital
file of as-built plans in both .dxf & .tif format (the .dxf file must be tied to the current county
coordinate system), (8) digital file of utility tie sheets in either .doc or .tif format, and (9) a
breakdown of lineal footage of all utilities installed, including the per lineal foot bid price. The
Developer is required to submit the final plat in electronic format.
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Z. As-Built Lot Surveys. An as-built lot survey will be required on all lots prior to
the Certificate of Occupancy being issued. The as-built lot survey must be prepared, signed, and
dated by a Registered Land Surveyor. Sod and the bituminous driveways must be installed before
the as-built survey is completed. If the weather conditions at the time of the as-built are not
conducive to paving the driveway and/or installing sod, a temporary Certificate of Occupancy may
be issued and the as-built escrow withheld until all work is complete.
Rev. 3/31/06
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