Site Plan Agreement - Chanhassen Market Street Addition (West Building)
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CITY OF CHANHASSEN
SITE PLAN AGREEMENT #2024-01
CHANHASSEN MARKET STREET ADDITION
SPECIAL PROVISIONS
AGREEMENT July 22, 2024, by and between the CITY OF CHANHASSEN, a Minnesota
municipal corporation, (the "City"), and Roers Chanhassen Bennett Apartments Owner, LLC, a
(Delaware) Corporation (the "Developer").
1. Request for Site Plan Approval. The Developer has asked the City to approve a site plan for
one six story vertical mixed use building including approximately 184 multifamily rental housing
units, 11,853 gross square feet of commercial space, 338 structured parking stalls, and construction
of Laredo Drive within the bounds of the Chanhassen Market Street Addition plat boundary (referred
to in this Agreement as the "project"). The land located in Carver County, Minnesota, is legally
described as Lot 1, Block 1, and Outlot A, Chanhassen Market Street Addition
2. Conditions of Site Plan Approval. The City approved the requested Site Plan on April 15,
2024. The Developer shall enter into this Agreement and furnish the security required by it.
3. Development Plans. The project shall be developed and maintained in accordance with the
following plans. The plans shall not be attached to this Contract. If the plans vary from the written
terms of this Agreement, the written terms shall control. The plans are:
Plan A: Final Plat approved July 22, 2024, prepared by Egan, Field & Nowak Inc.
Plan B: Grading, Drainage and Erosion Control Plan dated June 20, 2024 prepared by Kimley
Horn and Associates, Inc.
Plan C: Plans and Specifications for Improvements dated June 20, 2024, prepared by Kimley
Horn and Associates, Inc.
Plan D: Landscape Plan dated June 20, 2024, prepared by Kimley Horn and Associates, Inc.
4. Time of Performance. The Developer shall install all required improvements by December
31, 2026. The Developer may, however, request an extension of time from the City. If an extension
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is granted, it shall be conditioned upon updating the security posted by the Developer to reflect cost
increases and the extended completion date.
5. Security. To guarantee compliance with the terms of this Agreement, the Developer shall
furnish the City with a letter of credit in the form attached hereto from a bank, cash escrow, or
equivalent ("security") for $262,759.10 (parking lot, roads, sidewalk, landscaping, etc.). The
security shall be 110 percent of the following:
Parking Lot and Roads $166,410.91
Landscaping $72,461.00
Sub-Total $238,871.91
110% $262,759.10
This breakdown is for historical reference; it is not a restriction on the use of the security The City
may draw down the security, on five (5) business days written notice to the Developer, for any
violation of the terms of this Contract or without notice if the security is allowed to lapse prior to the
end of the required term. 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 without notice. If the
security is drawn down, the proceeds shall be used to cure the default. Upon receipt of proof
satisfactory to the City that work has been completed and financial obligations to the City have been
satisfied, with City approval the security may be reduced from time to time by ninety percent (90%)
of the financial obligations that have been satisfied.
If the Developer requests a Certificate of Occupancy prior to the installation of site landscaping,
then the developer shall provide to the city an updated letter of credit or cash escrow in an amount
sufficient to ensure the installation of said landscaping.
PROCEDURES FOR
LETTER OF CREDIT REDUCTION
a. Requests for reductions of Letters of Credit must be submitted to the City in writing by the
Developer or his Engineer.
b. Partial lien waivers totaling the amount of the requested reduction shall accompany each
such request.
c. Any reduction shall be subject to City approval.
6. Notices. Required notices to the Developer shall be in writing, and shall be either hand
delivered to the Developer, its employees or agents, or mailed to the Developer by certified mail at
the following address:
Tom Cronin
Roers Chanhassen Harlow Apartments Owner, LLC
__________________________
__________________________
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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.
7. Other Special Conditions. City Council approved a site plan for Chanhassen Market
Street Addition subject to the following conditions:
Planning Department:
1. Developer shall provide shop drawings of proposed pole-mounted light fixtures as well as
proposed wall-mounted lighting fixtures. Fixtures shall not be mounted more than 30 feet
in the air and shall have a maximum cut-off angle of 90 degrees.
2. The electrical transformers of the west building shall be screened either through
vegetation or fencing.
3. All signs associated with the project will require separate permits.
Forestry Department
1. The current landscape plan must be updated to meet the city’s species diversity
requirements where no more than ten percent of the trees may be from any one tree
species, no more than 20 percent of the trees may be from any one genus and no more
than 30 percent of trees from any one family. Currently, armstrong red maple makes up
25% of the tree inventory.
2. Applicant shall adjust the landscape plan to include screening around the generator pad
on the south end of the west building.
3. Applicant shall remove the tree in the southwest corner of the west building to make the
future mural planned on the southwest corner of the west building more visible to
vehicles and pedestrians on Market Blvd.
4. Laredo Drive will be extended on the south end. Applicant shall remove proposed
plantings in that area.
Engineering Department:
1. The Developer shall deed Outlot A to the city for future public access needs in
association with the extension of Laredo Drive to the south.
2. The Developer shall be responsible for maintaining Outlot A until such time that Laredo
Drive is connected to Market Street to the south.
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3. The Developer shall provide all access agreements and temporary easements necessary to
access and work on any abutting properties prior to the city issuing a Notice to Proceed
for construction operations.
4. Final geotechnical and environmental assessment reports shall be provided prior to the
issuance of building permits, and all recommendations from the geotechnical and
environmental reports shall be incorporated into the Developer’s plans as well as any
additional requirements set for by the MPCA throughout the build-out of the
development.
Water Resources Department:
1. The applicant shall provide additional information to determine the access agreements
and easements required to install and connect to storm sewer systems on adjacent
properties which are not publicly owned.
Building Department:
1. A demolition permit must be obtained prior to demolishing any structures on the site,
each demolition site address will require separate permits.
2. A building permit must be obtained before beginning any construction.
3. Building plans must be prepared and signed by design professionals licensed in the State
of Minnesota.
4. A final grading plan and soils report must be submitted to the Inspections Division before
building permits will be issued.
5. 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.
6. The building is required to have automatic fire extinguishing systems.
7. Structure proximity to property lines (and other buildings) will have an impact on the
code requirements for the proposed buildings, including but not limited to; allowable
size, protected openings and fire-resistive construction. These requirements will be
addressed when complete building and site plans are submitted.
8. Building plans must include a code analysis that contains the following information: Key
Plan, Occupancy group, Type of construction, Allowable height and area, Fire sprinklers,
Separated or non-separated, Fire resistive elements (Ext walls, Bearing walls - exterior or
interior, Shaft, Incidental use), Occupant load, Exits required (Common path, Travel
distance), Minimum plumbing fixture count.
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9. 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.
10. Accessibility will have to be provided to all portions of the development and a percentage
of the units may also be required to be accessible or adaptable in accordance with
Minnesota State Building Code Chapter 1341.
Fire Department:
1. The fire department requests that prior to the demolition of existing buildings that the
Applicant provide the city’s fire department the opportunity to conduct some training
exercises in the buildings.
8. General Conditions. The general conditions of this Agreement are attached as Exhibit "A"
and incorporated herein.
9. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall constitute one and the same instrument.
CITY OF CHANHASSEN
BY:
Elise Ryan, Mayor
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
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DEVELOPER:
BY:
Tom Cronin, Authorized Signatory
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this ____ day of _____________,
20___ by Tom Cronin, the Authorized Signatory of Roers Chanhassen Bennett Apartments Owner,
LLC, a Delaware 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
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CITY OF CHANHASSEN
SITE PLAN AGREEMENT
EXHIBIT "A"
GENERAL CONDITION
1. Right to Proceed. Within the site plan area, the Developer may not grade or otherwise disturb
the earth, remove trees, construct improvements, or any buildings until all the following conditions
have been satisfied: 1) this site plan 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 necessary
insurance for the Developer and its contractors has been received by the City, 4) a preconstruction
meeting has been held by the Developer and the Developer’s Engineer, and 5) the City has issued a
building permit provided the foregoing conditions having been satisfied.
2. Maintenance of site. The site shall be maintained in accordance with the approved site plan.
Plants and ground cover required as a condition of site plan approval which die shall be promptly
replaced.
3. License. The Developer hereby grants the City, its agents, employees, officers and contractors a
license to enter the site to perform all work and inspections deemed appropriate by the City in
conjunction with site plan development.
4. Erosion Control. Before the site is rough graded, and before any building permits are issued, the
erosion control plan, Plan B, shall be implemented, inspected, and approved by the City. The City
may impose additional erosion control requirements if they would be beneficial. All areas disturbed
by the excavation and backfilling operations shall be reseeded forthwith after the completion of the
work in that area. Except as otherwise provided in the erosion control plan, seed shall be certified
seed to provide a temporary ground cover as rapidly as possible. All seeded areas shall be fertilized,
mulched, and disc anchored as necessary for seed retention. The parties recognize that time is of the
essence in controlling erosion. If the Developer does not comply with the erosion control plan and
schedule or supplementary instructions received from the City, the City may take such action as it
deems appropriate to control erosion at the Developer's expense. The City will endeavor to notify the
Developer in advance of any proposed action, but failure of the City to do so will not affect the
Developer's and City's rights or obligations hereunder. No development will be allowed and no
building permits will be issued unless there is full compliance with the erosion control requirements.
Erosion control shall be maintained until vegetative cover has been restored. After the site has been
stabilized to where, in the opinion of the City, there is no longer a need for erosion control, the City
will authorize removal of the erosion control measures.
5. 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.
6. 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
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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
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.
7. Warranty. All trees, grass, and sod required in the approved Landscaping Plan, Plan D, shall be
warranted to be alive, of good quality, and disease free at the time of planting. All trees shall be
warranted for twelve (12) months from the time of planting. 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.
8. Responsibility for Costs.
A. 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 site plan
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.
B. The Developer shall reimburse the City for costs incurred in the enforcement of this
Agreement, including engineering and attorneys' fees.
C. The Developer shall pay in full all bills submitted to it by the City for obligations incurred
under this Agreement within thirty (30) days after receipt. If the bills are not paid on time, the
City may halt all development work and construction. Bills not paid within thirty (30) days
shall accrue interest at the rate of 8% per year.
9. 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 written notice of the work in default, not less than four (4) days in advance. This Agreement 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.
10. Miscellaneous.
A. Construction Trailers. Placement of on-site construction trailers and temporary job site offices
shall be approved by the City Engineer. Trailers shall be removed from the subject property
within thirty (30) days following the issuance of a certificate of occupancy unless otherwise
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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 Agreement.
D. Breach of Contract. Breach of the terms of this Agreement by the Developer shall be grounds
for denial of building permits.
E. Severability. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this
Agreement is for any reason held invalid, such decision shall not affect the validity of the
remaining portion of this Contract.
F. Occupancy. Unless approved in writing by the City Engineer, no one may occupy a building
for which a building permit is issued on either a temporary or permanent basis until the streets
needed for access have been paved with a bituminous surface and the utilities tested and
approved by the city.
G. Waivers/Amendments. The action or inaction of the City shall not constitute a waiver or
amendment to the provisions of this Agreement. 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 Agreement shall not be a waiver
or release.
H. Recording. This Agreement shall run with the land and may be recorded against the title to
the property.
I. Remedies. Each right, power or remedy herein conferred upon the City is cumulative and in
addition to every other right, power or remedy, express or implied, now or hereafter arising,
available to City, at law or in equity, or under any other agreement, and each and every right,
power and remedy herein set forth or otherwise so existing may be exercised from time to
time as often and in such order as may be deemed expedient by the City and shall not be a
waiver of the right to exercise at any time thereafter any other right, power or remedy.
J. Construction Hours. The normal construction hours under this contract shall be from 7:00
a.m. to 9:00 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. Construction activities in conjunction
with new developments and city improvement projects, including but not limited to grading,
utility installation and paving, requiring the use of heavy equipment shall be permitted
between the hours of 7:00 a.m. and 6:00 p.m. on any weekday and 9:00 a.m. and 5:00 p.m.
on Saturdays. No such activity is permitted on Sundays or public holidays. Operation of all
internal combustion engines used for construction or dewatering purposes beyond the normal
working hours will require City Council approval.
K. 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 site plan 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.
L. Compliance with Laws, Ordinances, and Regulations. In the development of the site plan, 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;
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5. Metropolitan Government, its agencies, departments and commissions.
M. 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 too enter
into this Development Contract.
N. 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.
O. 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.
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FEE OWNER CONSENT
Owners of all or part of the subject property, the development of which is governed by the foregoing
Site Plan Agreement, 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___
By__________________________
_______________________________
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
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MORTGAGE HOLDER CONSENT
TO
DEVELOPMENT CONTRACT
____________________, a Minnesota banking corporation, which holds a mortgage on the subject
property, the development of which is governed by the foregoing Site Plan Agreement, agrees that
the Site Plan Agreement shall remain in full force and effect even if it forecloses on its mortgage.
Dated this day of , 20 .
________________________
By:
Its:
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of ,
20___, by , the of
_____________________, a Minnesota banking corporation, on behalf of said entity.
NOTARY PUBLIC
DRAFTED BY:
City of Chanhassen
7700 Market Boulevard
P.O. Box 147
Chanhassen, MN 55317
(952) 227-1100
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(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 December
31, 2026.
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.
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BY: ____________________________________
Its ____________________________