Avienda Townhomes Development Contract final
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
AVIENDA TOWNHOMES
DEVELOPMENT CONTRACT
(Developer Installed Improvements)
i
TABLE OF CONTENTS
SPECIAL PROVISIONS PAGE
1. REQUEST FOR PLAT APPROVAL ............................................................................ SP-1
2. CONDITIONS OF PLAT APPROVAL ........................................................................ SP-1
3. DEVELOPMENT PLANS ............................................................................................ SP-1
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 CONDITIONS ........................................................................................... SP-5
GENERAL CONDITIONS
1. RIGHT TO PROCEED ................................................................................................. GC-1
2. PHASED DEVELOPMENT ........................................................................................ GC-1
3. PRELIMINARY PLAT STATUS ................................................................................ GC-1
4. CHANGES IN OFFICIAL CONTROLS ..................................................................... GC-1
5. IMPROVEMENTS ....................................................................................................... GC-1
6. IRON MONUMENTS .................................................................................................. GC-2
7. LICENSE ...................................................................................................................... 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 LIGHTING..................................................................................... GC-4
19. SIGNAGE ..................................................................................................................... GC-5
20. HOUSE PADS .............................................................................................................. GC-5
21. RESPONSIBILITY 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
E. Severability ....................................................................................................... GC-7
ii
F. Building Permits ............................................................................................... GC-7
G. Waivers/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-10
V. Soil Correction ................................................................................................ GC-10
W. Haul Routes ......................................................................................................... GC-10
X. Development Signs .............................................................................................. GC-10
Y. Construction Plans ............................................................................................... GC-10
Z. As-Built Lot Surveys ........................................................................................... GC-11
SP-1
CITY OF CHANHASSEN
DEVELOPMENT CONTRACT
(Developer Installed Improvements)
AVIENDA TOWNHOMES
SPECIAL PROVISIONS
AGREEMENT dated October 24, 2022 by and between the CITY OF CHANHASSEN, a
Minnesota municipal corporation (the "City"), and, Level 7 Development, LLC, a Minnesota limited
liability company (the "Developer").
1. Request for Plat Approval. The Developer has asked the City to approve a plat for
Avienda Townhomes (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 October 24, 2022, prepared by Landform Professional Services,
LLC.
Plan B: Grading, Drainage and Erosion Control Plan dated September 30, 2022, prepared by
Landform Professional Services, LLC.
Plan C: Plans and Specifications for Improvements dated September 30, 2022, prepared by
Landform Professional Services, LLC.
Plan D: Landscape Plan dated September 30, 2022, prepared by Landform Professional
Services, LLC.
SP-2
4. Improvements. The Developer shall install and pay for the following:
A. Sanitary Sewer System
B. Water System
C. Storm Water Drainage System
D. Streets
E. Concrete Curb and Gutter
F. Street Lights
G. Site Grading/Restoration
H. Underground Utilities (e.g. gas, electric, telephone, CATV)
I. 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, 2023. 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 $981,972.19. The amount of the
security was calculated as 110% of the following:
Site Grading/Erosion Control/Restoration $ 23,955.00
Sanitary Sewer $ 345,937.65
Watermain $ 238,755.00
Storm Sewer, Drainage System, including cleaning and maintenance $ 55,095.00
Streets $ 155,250.00
Sub-total, Construction Costs $ 818,992.65
Engineering, surveying, and inspection (7% of construction costs) $ 57,329.49
Landscaping (2% of construction costs) $ 16,379.85
Sub-total, Other Costs $ 73,709.34
TOTAL COST OF PUBLIC IMPROVEMENTS $ 892,701.99
SECURITY AMOUNT (110% of 892,701.99) $ 981,972.19
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
SP-3
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 corners 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:
Mark Nordland
Level 7 Development, LLC
4600 Kings Point Road
Minnetrista, MN 55331
Phone: 612-812-7020
Email: mnordland@nordlandpartners.com
Level 7 Development, LLC
4600 Kings Point Road
Minnetrista, Minnesota 55344
Attn: Mercedes Rhodes
(612) 203-2494
Email: ariusrealestatedevelopment@gmail.com
Kennedy & Graven, Chartered
150 South Fifth Street, Suite 700
Minneapolis, Minnesota 55402
Attn: Larry Wertheim
(612) 337-9216
Email: lwertheim@kennedy-graven.com
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. FEES
1. Prior to release of the plat for recording and prior to scheduling a pre-construction meeting,
Developer shall submit to the City $186,821.10 for the following City fees:
SP-4
Administration fee (based on estimated construction cost of $818,992.65) $ 21,379.85
GIS fee: 39 parcels @ $30/parcel + $100 for the plat $ 1,270.00
Partial payment of City sewer and water hookup fees:
39 units @ $691/unit (sewer) + $2,562/unit (water) $ 126,867.00
Street light operating fee: 4 lights @ $300/light $ 1,200.00
Park Fee: 39 dwelling units @ $5,800/unit (WAIVED – CREDIT) $ ------------
Surface Water Management Fee $ 36,104.25
Total $186,821.10
B. CONDITIONS OF APPROVAL
Planning
1. Homes shall be constructed and designed consistent with the PUD (Ordinance 696).
2. Outlots B, C and F shall be conveyed to a Homeowners Association contemporaneously
with recording final plat.
Building
1. Final plat must be recorded before lot addresses can be established and before any
building permits can be issued
2. A final grading plan and soils report must be submitted to the Inspections Division before
building permits will be issued.
3. Building plans must provide sufficient information to verify that proposed building meets
all requirements of the Minnesota State Building Code, additional comments or
requirements may be required after plan review
4. A building permit must be obtained before beginning any construction.
5. Retaining walls (if present) more than four feet high, measured from the bottom of the
footing to the top of the wall, must be designed by a professional engineer and a building
permit must be obtained prior to construction. Retaining walls (if present) under four feet
in height require a zoning permit.
Fire Comments
1. Road widths – no parking signs required on one side or both depending on width. See
City Code for road widths and signage.
2. No combustible construction to begin until fire hydrants and temp/permanent fire access
roads are installed and maintained.
3. Addressing and street signs to be installed immediately upon finish and before occupancy
of first unit. Temp addressing and street signs to be maintained throughout construction.
4. Construction vehicles and material may not block fire apparatus access or hydrants once
combustible material construction starts.
Landscaping and Tree Preservation
SP-5
1. The Developer shall include 97 trees in the overall landscape plan that meet minimum
canopy coverage requirements for size and diversity.
2. The Developer shall meet minimum bufferyard planting requirements for North and South
townhome areas.
3. The Developer shall install Conservation Easement signage along the south property line
abutting Outlot E. Markers shall be placed at property corners and each deflection point in
the property line.
4. The Developer shall apply a higher standard by incorporating landscaping features not
currently found within new developments, such as a pollinator meadow, planted woodland,
association community garden, or other sustainable landscape features.
Engineering:
1. Any previously recorded easements located within proposed public right-of-way or
proposed public drainage and utility easements must be vacated prior to or concurrently
with the final plat.
2. Emergency overflow elevations and routes along with lot benching details shall be
submitted prior to final plat approval.
3. The Developer is required to provide an updated SWPPP for the proposed subdivision
prior to approval of final construction plans.
4. The Developer shall provide an erosion and sediment control plan in conformance with
the requirements listed under Sec. 19-145 of City Ordinance prior to the approval of final
construction plans.
5. All newly constructed public streets (Mills Drive) will be publicly owned and maintained
after acceptance of the public improvements by the City Council.
6. Construction design elements associated with the street plans including the horizontal
curvature information will be required prior to approval of final construction plans.
7. The final construction plans must be updated and approved to meet staff’s comments
prior to recording of final plat.
8. All sanitary sewer and water mains will be publicly owned and maintained after
acceptance of the public improvements by the City Council.
9. The Developer will be required to enter into a Development Contract with the City and
all applicable securities and fees provided prior to recording of the final plat.
10. It is the Developer’s responsibility to ensure that permits are received from all other
agencies with jurisdiction over the project (i.e. Army Corps of Engineers, DNR, MnDOT,
Carver County, RPBC Watershed District, Board of Water and Soil Resources, PCA,
etc.).
11. A Homeowners Association will be responsible for the maintenance of all common areas
and private streets and utilities.
Water Resources:
1. The net SWMP Fee due at the time of final plat is $36,104.25.
2. The Developer shall include electronic copies for the HydroCAD and P8 models in any
future submittals to help to speed up the review process.
SP-6
3. The site is currently meeting rate control to each discharge point, however, the Developer
shall confirm rate control is still being met after making any necessary modeling updates
based on comments provided.
4. The outlet from proposed conditions node 46P “Triangle Basin” has been changed from
the Phase 1 plans, however, no work on the Triangle Basin is shown in the plans. The
Developer shall clarify this discrepancy.
5. The Developer shall confirm freeboard requirements are still being met after making any
necessary modeling updates based on comments provided.
6. The Developer shall confirm spot elevations on the plans near the low-lying backyard
areas are the EOFs for these areas or add the EOF elevations to the plans.
7. The Developer shall provide an operation and maintenance plan that identifies the
maintenance, inspection, and monitoring schedule and responsible party for private
stormwater BMP’s to be recorded contemporaneously with the final plat.
8. Developer shall confirm storm sewer sizing calculations provided are correct and are
consistent with HydroCAD modeling.
9. The existing storm sewer shall be shown on all utility plans. It does not appear to be
shown or clearly depicted in the utility plans.
10. The West Central Basin (Basin 31P in the proposed conditions modeling) is shown with
existing draintile/storm sewer in the Phase 2 plans however the modeling for the basin
has been updated since the Phase 1 plans. The Developer shall provide additional detail
on the status of the West Central Basin.
11. Details on any proposed outlet structures including EOFs or pretreatment structures for
the proposed BMPs shall be included in future submittals.
12. There are areas in the plans with slopes steeper than 3:1. Developer shall regrade these
areas to be a maximum of 3:1 slopes or get approval for steeper slopes from the City..
13. Additional water resources comments are included on the plans for the Developer to
address moving forward.
14. Additional information on the stormwater reuse and irrigation system shall be provided to
the city to review and approve the design prior to recording the final plat.
15. Additional catch basin inlets should be added to locations identified in the plans to reduce
gutter flow. Alternatively, the Developer shall include information on potential spread
within the roadways to demonstrate inlet spacing is adequate as proposed.
16. Additional calculations and HydroCAD modeling shall be provided for the proposed
drainage swale behind townhomes south of Bluff Creek Boulevard to confirm the design
is adequate for the anticipated flows.
9. General Conditions. The general conditions of this Contract are attached as Exhibit
"B" and incorporated herein.
SP-7
CITY OF CHANHASSEN
BY:
Elise Ryan, Mayor
(SEAL)
AND:
Laurie Hokkanen, City Manager
STATE OF MINNESOTA)
(ss.
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me this day of ,
20__, by Elise Ryan, Mayor, and by Laurie Hokkanen, 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.
NOTARY PUBLIC
SP-8
LEVEL 7 DEVELOPMENT, LLC:
BY:
Bahram Akradi, Its President
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of ,
20__, by Bahram Akradi, the President of Level 7 Development, LLC, a Minnesota limited liability
company, on behalf of the company.
NOTARY PUBLIC
DRAFTED BY:
City of Chanhassen
7700 Market Boulevard
P.O. Box 147
Chanhassen, MN 55317
(952) 227-1100
EXHIBIT "A"
TO
DEVELOPMENT CONTRACT
LEGAL DESCRIPTION OF SUBJECT PROPERTY:
Outlots A and C, Avienda, 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 .
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of ,
20___, by .
NOTARY PUBLIC
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 .
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of ,
20___, by .
NOTARY PUBLIC
DRAFTED BY:
City of Chanhassen
7700 Market Boulevard
P.O. Box 147
Chanhassen, MN 55317
(952) 227-1100
[OFFICIAL BANK LETTERHEAD]
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 (Name of Developer) and in your favor, our Irrevocable
Letter of Credit in the amount of $____________, available to you by your draft drawn on sight on the
undersigned bank.
The draft must:
a) Bear the clause, "Drawn under Letter of Credit No. __________, dated ________________,
2______, of (Name of Bank) ";
b) Be signed by the Mayor or City Manager of the City of Chanhassen.
c) Be presented for payment at (Address of Bank) , on or before 4:00 p.m. on November 15,
2______.
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 15 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, International Chamber of Commerce Publication No. 600.
We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly
honored upon presentation.
BY: ____________________________________
Its ______________________________
GC-1
CITY OF CHANHASSEN
DEVELOPMENT CONTRACT
(Developer 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 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 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
GC-2
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 Inspector(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. § 505.021. 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.
8a. 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.
GC-3
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. Except for streets and utilities
identified as private under the terms of this Agreement, all other improvements lying within
public easements shall become City property upon completion and acceptance by the City of the
work and construction required by this contract. 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. Final 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 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 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 (2½) 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).
In 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 six (6) 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 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
GC-4
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. . At the time of final plat approval the Developer shall pay
30% of the City Sewer Hook-up charge and 30% of the City Water hook up charge for each lot
in the plat in the amount specified in Special Provision, Paragraph 8, of this Development
Contract. The balance of the hook-up charges is collected at the time building permits are issued
are based on 70% of the rates then in effect, unless a written request is made to assess the costs
over a four year term at the rates in effect at time of application.
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
GC-5
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 (2½%) of construction costs for the first $1,000,000 and
one and one-half percent (1½%) 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.
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 21E 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 pay or incur in consequence of such claims,
including attorneys' fees.
GC-6
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 may or 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.
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
GC-7
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
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
GC-8
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, including pick-up and deliveries of
material and equipment and the operation of any internal combustion engine, may only occur
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 on legal holidays. Contractors must require their subcontractors,
agents and supplies to comply with these requirements and the Contractor is responsible for their
failure to do so. Under emergency conditions, this limitation may be waived by the written consent
of the City Engineer. If construction occurs outside of the permitted construction hours,
the Contractor shall pay the following administrative penalties:
First violation $ 500.00
Second violation $ 1,000.00
Third & subsequent violations 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 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
GC-9
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.
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.
GC-10
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. Development 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 required 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 11”x17” 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.
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. 9/30/2021