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1d. Approve Assignment of Development Contract for Orchard Green Project. CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone 952.227.1100 Fax: 952.227.1110 Building Inspections 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 1cL MEMORANDUM ~C? Paul Oehme, City Engineer/Public Works Director "r . Alyson Faoske, Assistant City Engineer ~t elI.. October 23, 2006 ~ TO: FROM: DATE: SUBJECT: Approve Assignment of Development Contract for Orchard Green- Project No. 06-04 (Simple Majority Vote Required) On February 13, 2006, City Council approved the development contract for Orchard Green. The developer has requested that the development contract be assigned to Reverence, LLC, owner of the property. The developer has met the terms of Paragraph 8, Part A, having paid the $44,937.50 cash fee on March 28, 2006. Reverence, LLC has submitted a cash escrow in the amount of $4,000.00 and the $46 recording fee has been submitted. The fully executed Mortgage Holder Consent to Assignment of Development Contract has been submitted. RECOMMENDA TION Staff recommends that City Council approve the assignment of the development, subject to the following condition: The conditions of approval stipulated in the February 13, 2006 development contract remain as stated, with the exception of Paragraph 8, Part A regarding payment of cash fees. Attachment: Assignment of Development Contract c: Peter Knaeble Tom W. Raymond, Reverence LLC G:\ENG\PROJECTS\K-O\Orchard Green\Assign DC 1O-23-06.doc 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. (reserved for recording information) ASSIGNMENT OF DEVELOPMENT CONTRACT AGREEMENT dated I Q II1I 0 b , 2006, by, between, and among the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City"); PETER J. KNAEBLE, an individual, and MATTHEW R PAVEK, an individual (hereinafter collective the "Developer"); and REVERENCE, LLC, a Minnesota limited liability company (the "Successor Developer"). RECITALS A The City and the Developer have entered into a Development Contract dated February 13, 2006, concerning the plat of ORCHARD GREEN, recorded with the Carver County Recorder's office on June 30, 2006 as Document No. T158957 ("Development Contract"). 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 23K of the Development Contract authorizes the City to approve the assignment of the Development Contract. NOW, mEREFORE, IN CONSIDERATION OF mEIR MUTUAL COVENANTS mE PARTIES AGREE AS FOLLOWS: 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. TRUNK SANITARY SEWER AND WATER HOOK-UP CHARGES. It is understood by the parties hereto that the trunk sanitary sewer and water hook-up charges for the plat of ORCHARD GREEN are due with the building permit at the rate in effect at the time of building permit application. The party applying for the building permit is responsible for paying these fees. 127826vOl 1 CHAN:OR.CHARD GREEN 3. EFFECTIVE DATE OF ASSIGNMENT. This Assignment shall be effective when the Successor Developer furnishes the City the security required by the Development Contract. Since most of the work required under the Development Contract has already been completed, the amount of the security to be furnished by the Successor Developer is $4,000.00. 4. NOTICES. Required Notices to the Successor Developer shall be in writing, and shall be either hand delivered to the Successor Developer, its employees or agents, or mailed to the Successor Developer by registered mail at the following address: Reverence, LLC 1969 Lakeside Lane Mound, MN 55364 5. BINDING EFFECT/RECORDING. This Assignment may be recorded against the title to the land described in the Development Contract and is binding upon the parties, their successors, heirs, and assigns. CITY OF CHANHASSEN BY: Thomas A. Furlong, Mayor (SEAL) AND Todd Gerhardt, City Manager/Clerk DEVELOPER: ; 1- ;14 MATTHEW R. PAVEK, an individual REVERENCE, LLC BY: 1 27826vO1 2 CHAN:ORCHARD GREEN STATE OF MINNESOTA ) ( ss. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this day of , 2006, by Thomas A. Furlong and by Todd Gerhardt, 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. NOTARY PUBLIC STATE OF MINNESOTA ) ( ss. ) COUNTYOF~~(\ (ft-- instrument was acknowledged before me this I 2006, by Peter J. Knaeble, an individual, as Develo er. day of D ~e foregoing I( tx( Julie A Thelemann Notary Public Minnesota M Commission E Ir.. Jan. 31 2009 instrument was acknowledged before me this ~ , 2006, by Matthew R. Pavek, an individual, as Deve op ) ( ss. ) STATE OF MINNESOTA COUNTY OF WflfllP'(\ day of 1 27826vOl 3 CHAN:ORCHARD GREEN ST ATE OF MINNESOTA) Julie A Thelemann ( ss. Notary Public COUNTY OF ~11/ltP1D ) M comml~~~el~~~.31,2009 ,he foregoing instrument was acknowledged before me this ( f ~ day of cr......1D~ r ' 2006, by Tom W. Raymond, the President of Reverence, LLC, a Minnesota limited liability company, on behalf of the company. DRAFfEDBY: CAMPBELL KNuTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Mimlesota 55121 (651) 452-5000 RNK:sm 127826vOl 4 CHAN:ORCHARD GREEN MORTGAGE HOLDER CONSENT TO ASSIGNMENT OF DEVELOPMENT CONTRACT FffiST COMMERCIAL BANK, a Minnesota banking corporation, which holds a mortgage on the property described in the Development Contract referenced in the foregoing Assignment, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, does hereby join in, consents, and is subject to the foregoing Assignment of Development Contract and agrees that the Development Contract referenced therein shall remain in full force and effect even if it forecloses on its mortgage. Dated this L day of Ot--b[yI , 2006. ~ SVP (? STATEOFMINNESOTA ) f L '^ ~ . 1\; ^ ( ss. COUNTY OF ~) me this -Ll~ day of and by and banking Bank, a Minnesota ~~ NOTARY PUBLIC DRAFfEDBY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 RNK:sm 127826vOl 5 CHAN:ORCHARD GREEN