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Recorded Documentsio -i2 CAMPBELL KNUTSON PIN Professional GG iA A 11 F 11 1 Ms. Jean Steckling City of Chanhassen 7700 Market Boulevard P.O. Box 147 Chanhassen, MN 55317 June 17, 2011 Re: City of Chanhassen - U.S. Home Corporation Outlot B, Reflections of Lake Riley 1 St Addition Dear Ms Steckling: Enclosed herewith for your files are the following original, recorded documents relating to the closing that occurred on April 4, 2011 in the above matter: 1. Development Contract for Reflections at Lake Riley 1 St Addition, recorded April 6, 2011, as Document No. A536066; 2. Grant of Temporary Turnaround Easements from U.S. Home Corporation to the City, recorded April 6, 2011, as Document No. A536069; 3. Grant of Temporary Turnaround Easement from U.S. Home Corporation to the City, recorded April 6, 2011, as Document No. A536070; 4. Quit Claim Deed from U.S. Home Corporation to the City for Outlot A, Reflections of Lake Riley 1 St Addition recorded on April 6, 2011, as Document No. A536071; 5. Limited Warranty Deed from U.S. Home Corporation to the City for Outlot B, Reflections of Lake Riley 1 St Addition recorded on April 6, 2011, as Document No. A536073; and 6. Owner's Policy of Title Insurance in the name of the City of Chanhassen for Outlot B, Reflections of Lake Riley 1 St Addition (Policy No. 5011400- 0152967e). Ms. Jean Steckling June 17, 2011 Page Two If you have any questions regarding the above, please give me a call. Very truly yours, Campbell Knutson Professional Association By: Carole J. Hoeft Legal Assistant cjh Enclosure cc: Mr. Todd Hoffman Ms. Kim Meuwissen 0 Document No . OFFICE OF THE A 536066 COUNTY RECORDER CARVER COUNTY, MINNESOTA Fee: $46.00 Certified Recorded on 4/6/2011 1111111111111111 Receipt#: RA 2011000028 at 11:08 AM ❑ p M uri ren t;o� ty R corder CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA REFLECTIONS AT LAKE RILEY IST ADDITION DEVELOPMENT CONTRACT (Developer Installed Improvements) T T CO rFs y SOOTHE F E OFFi , 0E P LAZA W,. ATE. 265 X5437 r-3Aa/ 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 -7 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 OROTHER 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 01 F. Building Permits G. Waivers / Amendments .................... ............................... H. Release ........................................... ............................... I. Insurance ........................................ ............................... J. Remedies ........................................ ............................... K. Assignability .................................. ............................... L. Construction Hours ........................ ............................... M. Noise Amplification ....................... ............................... N. Access ............................................ ............................... O. Street Maintenance ......................... ............................... P. Storm Sewer Maintenance ............. ............................... Q. Soil Treatment Systems ................. ............................... R . Variances ........................................ ............................... S. Compliance with Laws, Ordinances, and Regulations. T. Proof of Title .................................. ............................... U. Soil Conditions ............................... ............................... V. Soil Correction ............................... ............................... W. Haul Routes ....................................... ............................... X. Development Signs ............................ ............................... Y. Construction Plans ............................. ............................... Z. As -Built Lot Surveys ......................... ............................... .... ............................... GC -7 .... ............................... GC -7 ........ ...........I ...............GC -7 .... ............................... GC -7 .... ............................... GC -8 ........ ...........................GC -8 ....... ...........................GC -8 ... ............................... GC -8 ... ............................... GC -8 ... ............................... GC -8 ... ............................... GC -9 .... ............................... GC -9 .... ............................... GC -9 ... ............................... GC -9 ... ............................... GC -9 . ............................... GC -10 ................................. GC -10 ... ............................... GC -10 ... ............................... GC -10 ... ............................... GC -10 ... ............................... GC -11 ii CITY OF CHANHASSEN DEVELOPMENT CONTRACT (Developer Installed Improvements) REFLECTIONS AT LAKE RILEY 1ST ADDITION SPECIAL PROVISIONS AGREEMENT dated February 28, 2011 by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation (the "City "), and, US Home Corporation, a corporation under the laws of the State of Delaware (the 'Developer "). 1. Request for Plat Approval. The Developer has asked the City to approve a plat for REFLECTIONS AT LAKE RILEY 1ST ADDITION (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 January 28, 2011, prepared by Pioneer Engineering. Plan B: Grading, Drainage and Erosion Control Plan dated January 28, 2011, prepared by Pioneer Engineering. Plan C: Plans and Specifications for Improvements dated January 28, 2011, prepared by Pioneer Engineering. Plan D: Landscape Plan dated January 28, 2011, prepared by Pioneer Engineering. SP -1 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, 2011. 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 $982,083.72. The amount of the security was calculated as 110% of the following: Erosion Control and Restoration $ 125,700.00 Sanitary Sewer $ 134,800.00 Watermain $ 79,200.00 Storm.Sewer, Drainage System, including cleaning and maintenance $ 124,200.00 Streets $ 250,000.00 Street lights and signs $ 3,000.00 Sub - total, Construction Costs $ 716,900.00 Engineering, surveying, and inspection (7% of construction costs) Landscaping (2% of construction costs) Special assessments (to be re- assessed to the lots and outlots in the final plat) Sub - total, Other Costs $ 50,183.00 $ 14,338.00 $ 111,382.38 $ 175,903.38 TOTAL COST OF PUBLIC IMPROVEMENTS $ 892,803.38 SECURITY AMOUNT (110% of $892,903.38) $ 982,083.72 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 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: Jon Aune US Home Corporation 935 East Wayzata Boulevard Wayzata, MN 55391 Phone: 952- 249 -3000 Copy to: Jerry Perron Leonard, Street and Deinard Professional Association 150 South Fifth Street, Suite 2300 Minneapolis, MN 55402 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 1. A $982,083.72 letter of credit or escrow for the developer - installed improvements, the $42,637..86 cash administration fee and the fully- executed development contract must be submitted and shall be submitted prior to scheduling a pre - construction meeting. SP -3 2. The $42,637.86 cash fee was calculated as follows: Administration Fee $ 19,338.00 Street Lighting Charge (for electricity), 2 lights at $300.00 $ 600.00 GIS fee, $25 (plat) + 21 parcels x $10 /parcel $ 235.00 Surface Water Management Fee $ 10,608.86 Arterial Collector Fee $ 11,856.00 $ 42,637.86 B. PLANNING DEPARTMENT CONDITIONS OF APPROVAL 1. A sign reading, "This Road Will Be Extended in the Future" shall be placed at the west end of Chesterfield Lane. 2. The applicant shall enter into a development contract and submit the required fees and securities. C. ENGINEERING DEPARTMENT CONDITIONS OF APPROVAL 1. All work and drainage discharge within the MnDOT easement must be approved by MnDOT. 2. The public drainage and utility easement on the north side of the development must be vacated when this area is platted into lots and blocks. 3. The existing building and driveway on the north side of the site must be removed. 4. Based on the proposed grading, a low area will be created west and north of the Chesterfield Lane street stub. The developer must install storm sewer to prevent water from ponding in the area. 5. An encroachment agreement is required if for the entrance monument at the Highland Court intersection at Lyman Boulevard. 6. The developer must provide a roadway, drainage and utility easement for the portion of the temporary turnaround that lies outside of the right -of -way. 7. The development is adjacent to Lyman Boulevard and is therefore subject to the arterial collector fee at the time of final plat, which is calculated as follows: 4.94 developable acres x $2,400.00 /acre = $11,856.00 SP -4 D. WATER RESOURCES COORDINATOR CONDITIONS OF APPROVAL 1. The applicant, with the assistance of the city, must show that adequate capacity exists within the North Bay storm sewer system to accommodate the proposed drainage area to be directed to North Bay. 2. The NPDES General Stormwater Permit for Construction Activity must be applied for and obtained prior to any earth- disturbing activities. Proof of this must be provided to the city. 3. Two -foot sumps shall be included with structures NM-103, NM-203 and ME-222 or construct forebay in corresponding pond. 4. The SWMP fees for the first addition of this subdivision, in the amount of $10,608.86, are due at the time of final plat. 5. The applicant shall be responsible to assure that all other agency permissions are applied for and resulting conditions are met. 6. A Landowner Statement and Contractor Responsibility form will need to be filled out and submitted to the LGU (City of Chanhassen) and the DNR. The form can be found at: http: / /www.bwsr.state.mn.us/ wetlands /forms /Contractor_ Responsibility doc 7. Appendix A C.1 and C.2 must be addressed including: a. Exposed soil areas must be stabilized as soon as possible but never later than seven (7) days. b. A discussion of the feasibility of infiltration and the appropriate response to these findings. E. ENVIRONMENTAL RESOURCES COORDINATOR CONDITIONS OF APPROVAL 1. All trees proposed to be preserved shall be protected by tree preservation fencing. Fencing shall be installed prior to grading. F. PARKS AND RECREATION DEPARTMENT CONDITIONS OF APPROVAL 1. Successful transfer of Outlot B (4.83+ acres) to the City of Chanhassen concurrent with the final plat through a combination of dedication (3.08+ acres) and fee purchase (1.75± acres) at a cost of $112,716 per acre, for development and use as a public neighborhood park SP -5 2. BUILDING OFFICIAL CONDITIONS OF APPROVAL Demolition permits must be obtained before demolishing any structures on the site. Application for such permits must include hazardous substances investigative and proposed mitigation reports. 2. A final grading plan and soils report must be submitted to the Inspections Division before permits can be issued. 3. Retaining walls over four feet high must be designed by a professional engineer and require permits, inspections and final approval. 4. Each lot must be provided with separate sewer and water services. S. The developer and or their agent shall meet with the Inspections Division as early as possible to discuss plan review and permit procedures. 6. If applicable, existing home(s) affected by a new street name will require address changes. 3. FIRE MARSHAL CONDITIONS OF APPROVAL 1. Submit alternative street name for "Highland Court" (proposed street name conflicts with existing street in northwest portion of the City). 2. No burning permits will be issued. Trees, shrubs, etc., must be removed from the site or chipped. 3. Mains and fire hydrants shall be installed and made serviceable prior to combustible construction. 4. A three -foot clear space must be maintained around fire hydrants. Temporary street signs shall be installed as soon as construction begins. Signs shall be of an approved size as required by the Chanhassen Fire Marshal. They shall be weather - resistant and maintained until replaced by permanent signs. 6. 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 time of construction except when approved alternate methods of protection are provided. 7. The proposed hydrant between Lots 3 and 4, Block 2 must be relocated to the intersection of Highland Court and Chesterfield Lane. SP -6 9. General Conditions. The general conditions of this Contract are attached as Exhibit "B" and incorporated herein. SP -7 (SEAL) STATE OF MINNESOTA ) ( ss. COUNTY OF CARVER ) CITY OF CHANHASSEN BY: Thomas A. Furlong, Mayor AND: Todd Gerhardt, City Manager The foregoing instrument was acknowledged before me this .6 t ik day of T Al�� , 2011, 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. 4 f4 N 'u8 KAREN J. ENGELHARDT Notary Public- Minnesota »• MY Commission Expires Jan 31, 2015 • US HOME CORPORATION BY: ignature) Printed Name: �p�� 4t Title: �p STATE OF 1 ! �J ) (ss. COUNTY OF " t f l'� ) ) The foregoing instrument was ackno ledged before me this day of r ' 2011, by . �(1 \ a'� the �, E '�_ ��,� C� ( -J -i , � of US Home Corporation a Corporation under the laws of the State of Delaware, on behalf of the corporation. Nichole Lynn Kurtz NOTARY PUBLIC NOTARY PUBLIC STATE OF MINNESOTA My Commission Expires 1 -31 -2013 DRAFTED BY: City of Chanhassen 7700 Market Boulevard P.O. Box 147 Chanhassen, MN 55317 (952) 227 -1100 d.. EXHIBIT " A " TO DEVELOPMENT CONTRACT LEGAL DESCRIPTION OF SUBJECT PROPERTY: All that part of Government Lot 2 and the Northwest Quarter of the Northeast Quarter of Section 24, Township 116, Range 23, Carver County, Minnesota, lying south of MINNESOTA DEPARTMENT OF TRANSPORTATION RIGHT OF WAY PLAT NO. 10 -17, according to the recorded plat thereof, said Carver County and lying northerly of the centerline of Lyman Boulevard per Doc. No. T90333 and 189939. Said centerline is described as follows: Beginning at the west quarter corner of said Section 24; thence South 89 degrees 08 minutes 52 seconds East, where the east -west quarter line bears South 89 degrees 47 minutes 54 seconds East, a distance of 2186.62 feet; thence easterly, a distance of 28.00 feet, along a tangential curve, concave to the north, having a radius of 800.00 feet and a central angle of 02 degrees 00 minutes 19 seconds; thence North 88 degrees 50 minutes 49 seconds East, a distance of 629.36 feet; thence easterly, a distance of 11.92 feet, along a tangential curve, concave to the south, having a radius of 800.00 feet and a central angle of 00 degrees 51 minutes 14 seconds; thence North 89 degrees 42 minutes 03 seconds East, a distance of 592.50 feet; thence northeasterly, a distance of 550.91 feet, along a tangential curve, concave to the northwest, having a radius of 450.00 feet and a central angle of 70 degrees 08 minutes 38 seconds; thence North 19 degrees 33 minutes 26 seconds East, a distance of 149.08 feet; thence northeasterly, easterly and southeasterly, a distance of 954.67 feet, along a tangential curve, concave to the south, having a radius of 510.00 feet and a central angle of 107 degrees 15 minutes 06 seconds and there terminating. FEE OWNER CONSENT TO DEVELOPMENT CONTRACT Li Wi L nth, rT-711) - PN1T- T e fee owners of all or part of the subject property, the'develoiment of which is governed by the foregoing Development Contract, affirm and consent to the previsions 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 the .� g day of Mf�RcH , 20I I . i STATE OF MINNESOTA ) ss. COUNTY OF CIS iZy ) The foregoing instrument was acknowledged before me this '21Rm-1 day of MKFLH , 201, by JOHN K.Li Nb-ELWITZ QED Of s! Ll Na ELH UlL � ELt��IVI SUSAN A KERBER Notary Public E State of Minnesota ,�: �... • My Commission Expires ' January 31 , 2015 otary Public DRAFTED BY: City of Chanhassen 7700 Market Boulevard P.O. Box 147 Chanhassen, MN 55317 (952) 227 -1100 7529451vl IRREVOCABLE LETTER OF CREDIT TO: City of Chanhassen 7700 Market Boulevard, Box 147 Chanhassen, Minnesota 55317 Dear Sir or Madam: No. _ Date: 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 30, 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 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, International 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. Its 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 GC -1 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 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. § 505.02, 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 pen 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 GC -2 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. 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 Intelpleader 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 1 /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). 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 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 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 GC -3 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.. 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 GC -4 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 1 /2 %) of construction costs for the first $1,000,000 and one and one - half percent (1 /2 %) 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. GC -5 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. 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 GC -6 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 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 GC -7 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, 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 M W 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. 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. GC -9 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. 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. 3/31/06 GC -10 Document No . OFFICE OF THE A 536069 COUNTY RECORDER CARVER COUNTY, MINNESOTA Fee: $46.00 Receipt#: RA 201/000028 Certified Recorded on 402011 at 11:08 AM❑ PM 536069 d en ��ufyR order (reserved for recording information) GRANT OF TEMPORARY TURNAROUND EASEMENTS U.S. HOME CORPORATION, a Delaware corporation, referred to herein as "Grantor ", in consideration of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, does hereby grant unto the CITY OF CHANHASSEN, a municipal corporation organized and existing under the laws of the State of Minnesota, the Grantee, hereinafter referred to as the "City ", its successors and assigns, temporary easements for public roadway, drainage and utility purposes over, across, on, under, and through land situated within the County of Carver, State of Minnesota, legally described and depicted on the attached Exhibits "A" and `B ". TO HAVE AND TO HOLD the same, unto the City, its successors and assigns, commencing upon execution of this easement and expiring when Chesterfield Lane is extended through the cul -de -sac when the adjacent property to the west of REFLECTIONS AT LAKE RILEY 1 ADDITION develops, together with the right of ingress to and egress from the property, for the purpose of constructing, reconstructing, inspecting, repairing, and maintaining the property of the City, at the will of the City, its successors and assigns; it being the intention hereto that the Grantor hereby grants the uses herein specified without divesting itself of the right to use and enjoy 15653501 �N,0z T F i --Rk ~ — T LE COWRAKY CHAN:REFLECTIONS AT LAKE RILEY 1 ST ADD. SRN:03 /04/2011 SOUTHGA `,:`W OFFICE PLAZA (Lot 1, Blk 1 and Lots 1 &2, Blk 2 — Chesterfield Lane) W01 AW.ERICJ- 't S:WD. w., STE. 2 55 MW W437 RECORD c� the above described temporary easement premises, subject only to the right of the City to use the same for the purposes herein expressed. It is understood by the Grantor that the City shall not be responsible for any restoration or replacement costs or damages resulting from the construction and maintenance of the easement premises. It is further understood that vegetation may be removed and that excavation will occur on the easement premises. The above named Grantor, its successors and assigns, does covenant with the City, its successors and assigns, that it is well seized in fee title of the above described easement premises; that it has the sole right to grant and convey the easements to the City; that there are no unrecorded interests in the easement premises; and that it will indemnify and hold the City harmless for any breach of the foregoing covenants. IN TESTIMONY WHEREOF, the Grantor hereto has signed this easement this 4K day of 2011. GRANTOR: U.S. HOME CORPORATION BY: AND Its 156535v01 2 CHAN:REFLECTIONS AT LAKE RILEY I sT ADD. SRN:03 /04/2011 (Lot 1, Blk 1 and Lots 1 &2, Blk 2— Chesterfield Lane) STATE OF MINNESOTA ) ( ss. COUNTY OF A ) The foregoing instrument was 2011, by corporation, on behalf of the corporation. CAROLE L. TOOHEY NOTARY PUBLIC - MINNESOTA MY COMMISSION EXPIRES 01 -31 -2012 DRAFTED BY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 Telephone: (651) 452 -5000 SRN:ms 15653501 SRN:03 /04/2011 1c, knowlqdged before me this ay of and by e \A CTC and of U.S. HOMES CORPORATION, a Delaware 3 CHAN:REFLECTIONS AT LAKE RILEY 1 ST ADD. (Lot 1, Blk 1 and Lots 1 &2, Blk 2 — Chesterfield Lane) EXHIBIT " A " TO GRANT OF TEMPORARY TURNAROUND EASEMENT TURNAROUND EASEMENT DESCRIPTION A 95.00 foot wide temporary easement for public roadway, drainage and utility purposes lying over, under and across that part of Lot 1, Block 1 and Lots 1 and 2, Block 2, REFLECTIONS AT LAKE RILEY 1 sT ADDITION, according to the recorded plat thereof, Carver County, Minnesota. The centerline of said easement is described as follows: Commencing at the northeast corner of said Lot 1, Block 1; thence on an assumed bearing of North 71 degrees 20 minutes 15 seconds West, along the northerly line of said Lot 1, Block 1, a distance of 28.25 feet; thence North 18 degrees 39 minutes 45 seconds East, a distance of 30.50 feet; thence North 75 degrees 02 minutes 11 seconds West, a distance of 7.80 feet to the point of beginning of the centerline to be described; thence North 75 degrees 02 minutes 11 seconds West, a distance of 81.86 feet and there terminating. Said temporary easement shall expire when Chesterfield Lane is extended through the cul -de -sac when the adjacent property to the west of REFLECTIONS AT LAKE RILEY IT ADDITION develops, 156535vO1 4 CHAN:REFLECTIONS AT LAKE RILEY 1 ST ADD. SRN:03 /04/2011 (Lot 1, Blk 1 and Lots 1 &2, Blk 2— Chesterfield Lane) EXHIBIT "B" J L ... � r .... / v / ar, 86 780 ' N�5 Ois - _.. _ - 1 475 - 0211 "W 28.25 _ 71 °20'15 "W Nf C OP Cp - I R NORTHERLY LINE' OF LO T } I I( � L TEMPORARY TURN AROUND EASEMENT PROPOSED TEMPORARY TURN AROUND EASEMENT A 95.00 foot wide temporary easement for turn around purposes lying over, under, and across that part of Lot 1, Block 1, and Lots 1 and 2, Block 2, REFLECTIONS AT LAKE RILEY 1ST ADDITION, according to the recorded plot thereof, Carver County, Minnesota. The centerline of sold easement is described as follows: Commencing at the northeast corner of said Lot 1, Block 1; thence on an assumed bearing of North 71 degrees 20 minute 15 seconds West, along the northerly line of said Lot 1, Block 1, o distance of 28.25 feet; thence North 18 degrees 39 minutes 45 seconds East, a distance of 30.50 feet; thence North 75 degrees 02 minutes 11 seconds West, a distance of 7.80 feet to the point of beginning of the centerline to be described; thence North 75 degrees 02 minutes 11 seconds West, a distance of 81.86 feet and there terminating. This temporary easement shall expire on (THIS LEGAL DESCRIPTION SHALL BECOME VALID UPON RECORDING THE PLAT OF REFLECTIONS AT LAKE RILEY 1ST ADDITION.) THE BASE MAP USED FOR THIS SKETCH IS A PORTION OF A COPY OF THE UNRECORDED PLAT OF REFLECTIONS AT LAKE RILEY 1S7 ADDITION. * THIS SKETCH DOES NOT PURPORT TO SHOW THE EXISTENCE OR NONEXISTENCE OF ANY ENCROACHMENTS FROM OR ONTO THE HEREON DESCRIBED. LAND, EASEMENTS OF RECORD OR UNRECORDED EASEMENTS WHICH AFFECT SAID LAND OR ANY IMPROVEiiIENTS TO SAID LAND. WE HEREBY CERTIFY TO LENNAR THAT THIS SURVEY, PLAN OR REPORT WAS PREPARED BY ME, OR UNDER MY DIRECT SUPERVISION, AND THAT AM A DULY LICENSED LAND SURVEYOR U14DER THE LAWS OF THE STATE OF MINNESOTA, DATED THIS 27TH DAY OF JANUARY, 2011. 40 20 0 40 ^ Scale. in Feet PI NEERengineering CIYILL\GINCCM l \DULA \\FAS LANDSURMORS LM\DSCAMARCHUT"M (651) 681 -1914 2422 Enterprise Dm•e - Fax: 681 -9488 Mendota Heights, MN 5512 www.pioneereng.Donn SIG ED: PIONEER ENGINEER t G. P.A. BY: John C. Larson, Professional Land Surveyor Minnesota License No. 19828 Cad File: 110211002 -TEMP Description Sketch for TURN AROUND EASEMENT Folder #: 7296 LENNAR Drawn by: PJB OFFICE OF THE Document No . COUNTY RECORDER A 5 3 60 7 0 CARVER COUNTY, MINNESOTA Fee: $46.00 Receipt#: RA 201100002 Certified Recorded on 4/612011 111 at 11:08 MOPM ar u dgren n ecorder (reserved for recording information) GRANT OF TEMPORARY TURNAROUND EASEMENT U.S. HOME CORPORATION, a Delaware corporation, hereinafter referred to as "Grantor ", in consideration of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, does hereby grant unto the CITY OF CHANHASSEN, a municipal corporation organized under the laws of the State of Minnesota, the Grantee, hereinafter referred to as the "City ", its successors and assigns, a temporary easement for public roadway, drainage and utility purposes over, across, on, under, and through land situated within the County of Carver, State of Minnesota, legally described and depicted on the attached Exhibits "A" and `B ". TO HAVE AND TO HOLD the same, unto the City, its successors and assigns, commencing upon execution of this easement and expiring when OUTLOT D, REFLECTIONS AT LAKE RILEY 1 ADDITION is final platted into lots in the future, together with the right of ingress to and egress from the easement premises, for the purpose of constructing, reconstructing, inspecting, repairing, and maintaining the easement premises of the City, at the will of the City, its successors and assigns; it being the intention hereto that the Grantor hereby grants the uses herein specified without divesting itself of the right to use and enjoy the above described temporary NOR` N 17 LME COMPANY 1565320 SOUTHS ATE ,')FFlCE P CHAN:REFLECTIONS AT LAKE RILEY 1 ST ADD. SRN:03 /04/2011 5001 MAERIC'A4,, SlYD. W., ST' 256 � (Outlot D — Highland Court Turnaround) BLOOWNG70N, AON W4 RECORD I C) r-.t 1X7 easement premises, subject only to the right of the City to use the same for the purposes herein expressed. It is understood by the Grantor that the City shall not be responsible for any restoration or replacement costs or damages resulting from the construction and maintenance of the easement premises. It is further understood that vegetation may be removed and that excavation will occur on the easement premises. The above named Grantor, its successors and assigns, does covenant with the City, its successors and assigns, that it is well seized in fee title of the above described easement premises; that it has the sole right to grant and convey the easement to the City; that there are no unrecorded interests in the easement premises; and that it will indemnify and hold the City harmless for any breach of the foregoing covenants. -l am IN TESTIMONY WHEREOF, the Grantor hereto has signed this easement this day of OU ,L, _ , 2011. GRANTOR: U.S. HOME CORPORATION BY: MCI Its 15653201 2 CHAN:REFLECTIONS AT LAKE RILEY 1 sT ADD. SRN:03 /04/2011 (Outlot D — Highland Court Turnaround) STATE OF MINNESOTA ( ss. COUNTY OF �,Y ) The foregoing instrument was ackpowledAed before me this ( day of 2011, by and by _--- -- C Pt LSeJ � and ----- of U.S. HOME CORPORATION, a Delaware corporation, on behalf of the corporation. = TOOHEY 4:.' NOTA NOTARY PUBLIC MY CO DRAFTED BY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 Telephone: (651) 452 -5000 SRN:ms 1565320 3 CHAN:REFLECTIONS AT LAKE RILEY 1 ST ADD. SRN:03 /04/2011 (Outlot D — Highland Court Turnaround) EXHIBIT " A " TO GRANT OF TEMPORARY TURNAROUND EASEMENT TURNAROUND EASEMENT DESCRIPTION A 101.00 foot wide temporary easement for public roadway, drainage and utility purposes lyin over, under and across that part of OUTLOT D, REFLECTIONS AT LAKE RILEY Is ADDITION, according to the recorded plat thereof, Carver County, Minnesota. The centerline of said easement is described as follows: Commencing at the northwest corner of Lot 4, Block 3, said REFLECTIONS AT LAKE RILEY 1 sT ADDITION; thence on an assumed bearing of North 87 degrees 46 minutes 21 seconds East, along the north line of said Lot 4 and its easterly extension, a distance of 170.69 feet; thence North 05 degrees 16 minutes 55 seconds West, a distance of 6.54 feet to the point of beginning of the centerline to be described; thence North 05 degrees 16 minutes 55 seconds West, a distance of 92.92 feet and there terminating. Said temporary easement shall automatically expire when OUTLOT D, REFLECTIONS AT LAKE RILEY 1 sT ADDITION is final platted into lots and blocks in the future. 15653201 4 CHAN:REFLECTIONS AT LAKE RILEY 1 ST ADD. SRN:03 /04/2011 (Outlot D — Highland Court Turnaround) EXHIBIT "B" I,.. ' 7'7 .I TEMPORARY TURN AROUND EASEMENT PROPOSED TEMPORARY TURN AROUND EASEMENT 'J A 101.00 foot 'hide temporary easement for turn around purposes lying over, under, and across that port of Outlot D, REFLECTIONS AT LAKE RILEY 1ST ADDITION, according to the recorded plot thereof, Carver County, Minnesota. The centerline of soid eosement is described as follows: Commencing at the northwest corner of Lot 4, Block 3, said REFLECTIONS AT LAKE RILEY IST ADDITION; thence on on assumed beoring of North 87 degrees 46 minute 21 seconds East, along the north line of said Lot 4 and its easterly extension, a distance of 170.69 feet; thence (North 05 degrees 16 minutes 55 seconds West, a distance of 6.54 feet to the point of beginning of the centerline to be described; thence North 05 degrees 16 minutes 55 seconds West, c distance of 92.92 feet and there terminoting. This temporary easement sholl expire on (THIS LEGAL DESCRIPTION SHALL BECOME VALID UPON RECORDING THE PLAT OF REFLECTIONS AT LAKE RILEY 1ST ADDITION.) THE BASE MAP USED FOR THIS SKETCH IS A PORTION OF A COPY OF THE UNRECORDED PLAT OF REFLECTIONS AT LAKE RILEY 'IST A + THIS SKETCH DOES NOT PURPORT TO SHOW THE EXISTENCE OR NONEXISTENCE OF ANY ENCROACHMENTS FROM OR ONTO THE HEREON DESCRIBED LAND, EASEMENTS OF RECORD OR UNRECORDED EASEMENTS WHICH AFFECT SAID LAND OR ANY IMPROVEIIENTS TO SAID LAND. WE HEREBY CERTIFY TO LENNAR THAT THIS SURVEY, PLAN OR REPORT WAS PREPARED BY ME, OR UNDER MY DIRECT SUPERVISION, AMC THAT AM A DULY LICENSED LAND SURVEYOR UNDER THE LAWS OF THE STATE OF MINNESOTA, DATED THIS 19TH DAY OF JANUARY, 2011. SI tMinnesoto EER ENGINEE P.A. 40 20 0 40 BY: Larson, Professional Land Surveyor Scale. in Feet License No. 19828 Cad File: 110211001 -TEMP PI O ; � \�fl TEE TURN AROUND engineering FDescription Sketch for EASEMENT Folder #: 7296 CIVIL EVII.VEFRS —N-DI'L.a.V\Flit —DSURVCYDRS LAHDSCAPCARCHRLiTS LE A Drawn by: PJB (650 681 -1914 2422 Enterprise Drive Fax: 681 -9488 Mendota Heights, MN 55120 www.pionecreng.co n Sheet 7 No delinquent taxes and transfer entered: Certificate of Real Estate Value ( ) Filed ((;ndoi Required CRV # cP ,2U r/ arver County Auditor Deputy Document No . OFFICE OF THE /� 536071 COUNTY RECORDER /� CARVER COUNTY, MINNESOTA Fee: $46.00 Receipt#: RA 2011000028 Certified Recorded on 4/6/2011 at 11:08 L El M 536071 // n ren 1111111111111111111 Cou rder (Top 3 Inches Reserved for Recording Data) QUI CLAIM DEED Minnesota Uniform Conveyancing Blanks Business Enti to Business Entity Form 10.3.5 (2010) DEED TAX DUE: $ �, �—}� DATE: �2/ �'J2 ZI .2011 FOR VALUABLE CONSIDERATION U.S. Home Corporation, a corporation under the laws of Delaware, ( "Grantor "), hereby conveys and quitclaims to the City of Chanhassen, Minnesota, a municipal corporation and political subdivision under the laws of Minnesota, ( "Grantee ") real property in Carver County, Minnesota, legally described as follows: Outlot A, Reflections at Lake Riley 1st Addition, Carver County, Minnesota Check here if part or all of the described real property is Registered (Torrens) ❑ together with all hereditaments and appurtenances belonging thereto. Check applicable box: ® The Seller certifies that the Seller does not know of any wells on the described real property. ❑ A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number: ) ❑ I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. P SOUTHC1 OP ICE PLAZA 5601 , >.c x;11 `' . `•fPl , STE. 25-° Pted "Itpk 4 19 G'OnServa&A" riE* P. dd Grantor U.S. HOME CORPORATION, a Delaware corporation By: Jo an A. e Vice President, Minnesota Land Division (type of authority) Page 1 of 2 7529346v1 0 f Paoc 2 of 2 Minnesota Uniform Conveyancing Blanks Form 10.3.5 State of Minnesota, County of HENNEPIN This instrument was acknowledged before me on M&fM 29 . 2011, Jonathan A. Aune, the vice President, Minnesota Land Division of U.S. Home Corporation, a Delaware corporation, on behalf of the corporation. (Seal, If any) CAROLE L. TOOHEY NOTARY PUBLIC — MINNESOTA MY COMMISSION EXPIRES 01 -31 -2012 THIS INSTRUMENT WAS DRAFTED BY: (insert name and address) Leonard, Street and Deinard P.A. (JDP /RLG) 150 South Fifth Street, Suite 2300 Minneapolis, MN 55402 TAX STATEMENTS FOR THE REAL PROPERTY DESCRIBED IN THIS INSTRUMENT SHOULD BE SENT TO: (insert name and address of Grantee to whom tax statements should be sent) City of Chanhassen, Minnesota 7700 Market Boulevard P.O. Box 147 Chanhassen, MN 55317 7529346v1 rru;� No dillrigtiant tax an transfer entered: C'erti cate of Reel Estate Value (Filed ( ) Not Roquired CRV IP7S886 20 r er County Auditor l Document No . OFFICE OF THE A 5 3 6 0 7 3 CO UNTY RECORDER CARVER COUNTY, MINNESOTA Fee: $46.00 Receipt#: RA 2011000028 Certified Recorded on 4/6/2011 at 11:08 AM ❑ PM 1. .. ....._..__ ,teserved for Recording Data) X� rk L dgren unt Recorder LIMITED WARRANTY DEED Minnesota Uniform Conveyancing Blanks Business Entity to Business Entity Form 10.2.9 (2010) DEED TAX DUE: $ �,�g DATE: M 6 !x'1 131 .2011 U.S. Home Corporation, a corporation under the laws of Delaware, ( "Grantor"), hereby conveys and quitclaims to the City of Chanhassen, Minnesota, a municipal corporation and political subdivision under the laws of Minnesota, ( "Grantee ") real property in Carver County, Minnesota, legally described as follows: Outlot B, Reflections at Lake Riley 1st Addition, Carver County, Minnesota c teed Tan cat s S 0. 1 paid on (Date) Check here if part or all of the described real property is Registered (Torrens) ❑ consery - a * Fee Pvd together with all hereditaments and appurtenances belonging thereto. t: - 2ryo, C". Auditor This Deed conveys after - acquired title. Grantor warrants that Grantor has not done or suffered anything to encumber the property, EXCEPT: Covenants, declarations, easements, encumbrances, restrictions and reservations of record, if any. Check applicable box: ® The Seller certifies that the Seller does not know of any wells on the described real property. ❑ A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number: ❑ I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate RECORD V Grantor U.S. HOME CORPORATION, a Delaware corporation By: JEn - at A' We — its: Vice President, Minnesota Land Division (type of authority) ��R�4��ppg 1 �0FFIGE PLA � � :,dC90 9 6°Ztlt� ER�sr3 !,, 9 D. K, S ` E. 25- LOJ�es��$';i¢"'. " ;" jai x;5437 C� IS Page 1 of 2 7528146v] Paga 2 f 2 Minnesota Uniform Conveyancing Blanks Form 10.2.9 State of Minnesota, County of HENNEPIN This instrument was acknowledged before me on YY &OA 2$ 2011, by Jonathan A. Aune, the vice President, Minnesota Land Division of U.S. Home Corporation, a Delaware corporation, on behalf of the corporation. (Seal, 'rf any) CAROLE L. TOOHEY 19 WN:OTARY PUBLIC — MINNESOTA MMISSION EXPIRES 01- 31-2012 THIS INSTRUMENT WAS DRAFTED BY: (insert name and address) Leonard, Street and Deinard P.A. (JDP /RLG) 150 South Fifth Street, Suite 2300 Minneapolis, MN 55402 (signature ef notarial o1 Title (and Rank): Notary Public My commission expires: 20 2.. (montt✓day1yea0 TAX STATEMENTS FOR THE REAL PROPERTY DESCRIBED IN THIS INSTRUMENT SHOULD BE SENT TO: (insert name and address of Grantee to whom tax statements should be sent) City of Chanhassen, Minnesota 7700 Market Boulevard P.O. Box 147 Chanhassen, MN 55317 7528146vl Owner's Policy of Title Insurance Owner's Policy ISSUED BY First American Title Insurance Com POLICY NUMBER 5011400 0152967e Any notice of claim and any other notice or statement in writing required to be given to the Company under this policy must be given to the Company at the address shown in Section 18 of the Conditions. COVERED RISKS SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B, AND THE CONDITIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation (the "Company ") insures, as of Date of Policy and, to the extent stated in Covered Risks 9 and 10, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of: Title being vested other than as stated in Schedule A. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from (a) A defect in the Title caused by (i) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; (ii) failure of any person or Entity to have authorized a transfer or conveyance; (iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered; (iv) failure to perform those acts necessary to create a document by electronic means authorized by law; (v) a document executed under a falsified, expired, or otherwise invalid power of attorney; (vi) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (vii) a defective judicial or administrative proceeding. (b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid. (c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. The term "encroachment" includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land. Unmarketable Title. No right of access to and from the Land. (Covered Risks Continued on Page 2) In Witness Whereof, First American Title Insurance Company has caused its corporate name to be hereunto affixed by its authorized officers as of Date of Policy shown in Schedule A. First American Title Insurance Company • ti ' •G0� P U kq • �'. �+ r a o a � SEPTEMBER 24, d� 1968 ? C AC 1 F 0 tt� \V, Ad Dennis J. Gilmore President Timothy Kemp Secretary (This Policy is valid only when Schedules A and B are attached) For Reference: File #: 40852 -11 -06773 This Jacket was created electronically and constitutes an original document Copyright 20062009 American Land Title Association. All rights reserved.The use of this form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. Form 5011400 (8/1/09) Page 1 of 5 1 ALTA Owner's Policy of Title Insurance (6- 17 -06) First American Title Insurance Company SCHEDULE A Name and Address of Title Insurance Company: First American Title Insurance Company 10880 175th Court, Suite 210 Lakeville, MN 55044 File Number: 40852 -11 -06773 Policy Number: 5011400 - 0152967E Amount of Insurance: $ 197,253.00 Premium: $ 667.00 Prior Policy Amount: Reissue Credit Amount: Address Reference: XXX Chanhassen, MN 55317 Date of Policy: April 6, 2011 at 11:08 AM 1. Name of Insured: City of Chanhassen , a Minnesota municipal corporation and political subdivision 2. The estate or interest in the Land which is covered by this policy is: Fee Simple 3. Title to the estate or interest in the Land is vested in: City of Chanhassen , a Minnesota municipal corporation and political subdivision 4. The_L- ,a"Arsf��9"W"IrX�iA �IS�E� as follows: FOR INFORMATIONAL PURPOSES ONLY: ABSTRACT Property Carver County Issuing Agent: NORTH AMERICAN TITLE COMPANY 5001 American Blvd., Suite 255 Bloomington, MN 55437 952 - 943 -1620 Countersigned: N M.�DERSON/ ALTA Owner's Policy (06/16/06) 40852 -11 -06773 S24MNOTP.3675 Rev. 3n106 OWNER'S POLICY SCHEDULE A (Continued) LAND DESCRIPTION File Number: 40852 -11 -06773 The Land referred to in this policy is described as follows: Outlot B, Reflections of Lake Riley 1 st Addition, Carver County, Minnesota: ALTA Owner's Policy Schedule A Policy Number: 5011400 - 0152967E ( 40852- 11- 06773.PFD/40852 -11- 06773/25) S24MNOTP.3678 Rev. 3/7/06 OWNER'S POLICY File Number: 40852 -11 -06773 Policy Number: 5011400 - 0152967E SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees or expenses which arise by reason of: 1. Real estate taxes for the year 2012 and thereafter, not yet due or payable 2. Public Improvement and Special Assessment Agreement by and between the City of Chanhassen and Klingelhutz Development Company, dated February 20, 2005, filed April 20, 2005, as Document No. A412364. 3. Variance 93 -4 dated June 28, 1993, recorded August 3, 1993, as Document No. 153227. 4. Notice of Lis Pendens in favor of the City of Chanhassen for acquisition of temporary and permanent easements dated January 10, 1996, filed January 12, 1996, as Document No. 189939. 5. Easements for drainage and utilities as shown on the recorded plat of Reflections at Lake Riley 1 st Addition, filed on April 6, 2011, as Document No. A 536067. 6. Reflections at Lake Riley 1 st Addition Development Contract dated February 28, 2011, filed April 6, 2011, as Document No. A 536066. ALTA Owner's Policy Schedule B (06/17/06) ( 40852- 11- 06773.PFD/40852 -11- 06773/26) S24MNOTP.3677 Rev. 3n106 Policy # : 5011400- 0152967e COVERED RISKS (Continued) 5. The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (a) the occupancy, use, or enjoyment of the Land; (b) the character, dimensions, or location of any improvement erected on the Land; (c) the subdivision of land; or (d) environmental protection if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only to the extent of the violation or enforcement referred to in that notice. 6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice. 7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records. 8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge. 9. Title being vested other than as stated in Schedule A or being defective (a) as a result of the avoidance in whole or in part, or from a court order providing an alternative remedy, of a transfer of all or any part of the title to or any interest in the Land occurring prior to the transaction vesting Title as shown in Schedule A because that prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws; or (b) because the instrument of transfer vesting Title as shown in Schedule A constitutes a preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws by reason of the failure of its recording in the Public Records (i) to be timely, or (ii) to impart notice of its existence to a purchaser for value or to a judgment or lien creditor. 10. Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks 1 through 9 that has been created or attached or has been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. The Company will also pay the costs, attorneys' fees, and expenses incurred in defense of any matter insured against by this Policy, but only to the extent provided in the Conditions. EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy. (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. Form 5011400 (8/1/09) Page 2 of 5 1 ALTA Owner's Policy of Title Insurance (6- 17 -06) Policy # : 5011400- 0152967e CONDITIONS 1. DEFINITION OF TERMS The following terms when used in this policy mean: (a) "Amount of Insurance ": The amount stated in Schedule A, as may be increased or decreased by endorsement to this policy, increased by Section 8(b), or decreased by Sections 10 and 11 of these Conditions. (b) "Date of Policy ": The date designated as "Date of Policy" in Schedule A. (c) "Entity ": A corporation, partnership, trust, limited liability company, or other similar legal entity. (d) "Insured ": The Insured named in Schedule A. (i) The term "Insured" also includes (A) successors to the Title of the Insured by operation of law as distinguished from purchase, including heirs, devisees, survivors, personal representatives, or next of kin; (B) successors to an Insured by dissolution, merger, consolidation, distribution, or reorganization; (C) successors to an Insured by its conversion to another kind of Entity; (D) a grantee of an Insured under a deed delivered without payment of actual valuable consideration conveying theTitle (1) if the stock, shares, memberships, or other equity interests of the grantee are wholly -owned by the named Insured, (2) if the grantee wholly owns the named Insured, (3) if the grantee is wholly -owned by an affiliated Entity of the named Insured, provided the affiliated Entity and the named Insured are both wholly - owned by the same person or Entity, or (4) if the grantee is a trustee or beneficiary of a trust created by a written instrument established by the Insured named in Schedule A for estate planning purposes. (ii) With regard to (A), (B), (C), and (D) reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor Insured. (e) "Insured Claimant ": An Insured claiming loss or damage. (f) "Knowledge" or "Known ": Actual knowledge, not constructive knowledge or notice that may be imputed to an Insured by reason of the Public Records or any other records that impart constructive notice of matters affecting the Title. (g) "Land ": The land described in Schedule A, and affixed improvements that by law constitute real property. The term "Land" does not include any property beyond the lines of the area described in Schedule A, nor any right, title, interest, estate, or easement in abutting streets, roads, avenues, alleys, lanes, ways, or waterways, but this does not modify or limit the extent that a right of access to and from the Land is insured by this policy. (h) "Mortgage ": Mortgage, deed of trust, trust deed, or other security instrument, including one evidenced by electronic means authorized by law. (i) "Public Records ": Records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without Knowledge. With respect to Covered Risk 5(d), "Public Records" shall also include environmental protection liens filed in the records of the clerk of the United States District Court for the district where the Land is located. (j) "Title ": The estate or interest described in Schedule A. (k) "Unmarketable Title ": Title affected by an alleged or apparent matter that would permit a prospective purchaser or lessee of the Title or lender on the Title to be released from the obligation to purchase, lease, or lend if there is a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title. This policy shall not continue in force in favor of any purchaser from the Insured of either (i) an estate or interest in the Land, or (ii) an obligation secured by a purchase money Mortgage given to the Insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT The Insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 5(a) of these Conditions, (ii) in case Knowledge shall come to an Insured hereunder of any claim of title or interest that is adverse to the Title, as insured, and that might cause loss or damage for which the Company may be liable by virtue.of this policy, or (iii) if the Title, as insured, is rejected as Unmarketable Title. If the Company is prejudiced by the failure of the Insured Claimant to provide prompt notice, the Company's liability to the Insured Claimant under the policy shall be reduced to the extent of the prejudice. 4. PROOF OF LOSS In the event the Company is unable to determine the amount of loss or damage, the Company may, at its option, require as a condition of payment that the Insured Claimant furnish a signed proof of loss. The proof of loss must describe the defect, lien, encumbrance, or other matter insured against by this policy that constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. 5. DEFENSE AND PROSECUTION OF ACTIONS (a) Upon written request by the Insured, and subject to the options contained in Section 7 of these Conditions, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an Insured in litigation in which any third party asserts a claim covered by this policy adverse to the Insured. This obligation is limited to only those stated causes of action alleging matters insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the Insured to object for reasonable cause) to represent the Insured as to those stated causes of action. It shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs, or expenses incurred by the Insured in the defense of those causes of action that allege matters not insured against by this policy. Form 5011400 (8/1/09) Page 3 of 5 1 . ALTA Owner's Policy of Title Insurance (6- 17 -06) Policy #: 5011400- 0152967e (b) The Company shall have the right, in addition to the options contained in Section 7 of these Conditions, at its own cost, to institute and prosecute any action or proceeding or to do any other act that in its opinion may be necessary or desirable to establish the Title, as insured, or to prevent or reduce loss or damage to the Insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable to the Insured. The exercise of these rights shall not be an admission of liability or waiver of any provision of this policy. If the Company exercises its rights under this subsection, it must do so diligently. (c) Whenever the Company brings an action or asserts a defense as required or permitted by this policy, the Company may pursue the litigation to a final determination by a court of competent jurisdiction, and it expressly reserves the right, in its sole discretion, to appeal any adverse judgment or order. 6. DUTY OF INSURED CLAIMANT TO COOPERATE (a) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding and any appeals, the Insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, including the right to use, at its option, the name of the Insured for this purpose. Whenever requested by the Company, the Insured, at the Company's expense, shall give the Company all reasonable aid (i) in securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act that in the opinion of the Company may be necessary or desirable to establish the Title or any other matter as insured. If the Company is prejudiced by the failure of the Insured to furnish the required cooperation, the Company's obligations to the Insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. (b) The Company may reasonably require the Insured Claimant to submit to examination under oath by any authorized representative of the Company and to produce for examination, inspection, and copying, at such reasonable times and places as may be designated by the authorized representative of the Company, all records, in whatever medium maintained, including books, ledgers, checks, memoranda, correspondence, reports, e- mails, disks, tapes, and videos whether bearing a date before or after Date of Policy, that reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the Insured Claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect, and copy all of these records in the custody or control of a third party that reasonably pertain to the loss or damage. All information designated as confidential by the Insured Claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the Insured Claimant to submit for examination under oath, produce any reasonably requested information, or grant permission to secure reasonably necessary information from third parties as required in this subsection, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that claim. CONDITIONS (Continued) 7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the Amount of Insurance under this policy together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations of the Company to the Insured under this policy, other than to make the payment required in this subsection, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Otherwise Settle With Parties Other Than the Insured or With the Insured Claimant. (i) To pay or otherwise settle with other parties for or in the name of an Insured Claimant any claim insured against under this policy. In addition, the Company will pay any costs, attomeys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay; or (ii) To pay or otherwise settle with the Insured Claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in subsections (b)(i) or (ii), the Company's obligations to the Insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. 8. DETERMINATION AND EXTENT OF LIABILITY This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the Insured Claimant who has suffered loss or damage by reason of matters insured against by this policy. (a) The extent of liability of the Company for loss or damage under this policy shall not exceed the lesser of (i) the Amount of Insurance; or (ii) the difference between the value of the Title as insured and the value of the Title subject to the risk insured against by this policy, (b) If the Company pursues its rights under Section 5 of these Conditions and is unsuccessful in establishing the Title, as insured, (i) the Amount of Insurance shall be increased by 10 %, an (ii) the Insured Claimant shall have the right to have the loss or damage determined either as of the date the claim was made by the Insured Claimant or as of the date it is settled and paid. (c) In addition to the extent of liability under (a) and (b), the Company will also pay those costs, attorneys' fees, and expenses incurred in accordance with Sections 5 and 7 of these Conditions. Form 5011400 (8/1/09) Page 4 of 5 1 ALTA Owner's Policy of Title Insurance (6- 17 -06) Policy # : 5011400- 0152967e 9. 10. 11. 12. 13. 14. LIMITATION OF LIABILITY (a) If the Company establishes the Title, or removes the alleged defect, lien, or encumbrance, or cures the lack of a right of access to or from the Land, or cures the claim of Unmarketable Title, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused to the Insured. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals, adverse to the Title, as insured. (c) The Company shall not be liable for loss or damage to the Insured for liability voluntarily assumed by the Insured in settling any claim or suit without the prior written consent of the Company. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY All payments under this policy, except payments made for costs, attomeys' fees, and expenses, shall reduce the Amount of Insurance by the amount of the payment. LIABILITY NONCUMULATIVE The Amount of Insurance shall be reduced by any amount the Company pays under any policy insuring a Mortgage to which exception is taken in Schedule B or to which the Insured has agreed, assumed, or taken subject, or which is executed by an Insured after Date of Policy and which is a charge or lien on the Title, and the amount so paid shall be deemed a payment to the Insured under this policy. PAYMENT OF LOSS When liability and the extent of loss or damage have been definitely fixed in accordance with these Conditions, the payment shall be made within 30 days. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT (a) Whenever the Company shall have settled and paid a claim under this policy, it shall be subrogated and entitled to the rights of the Insured Claimant in the Title and all other rights and remedies in respect to the claim that the Insured Claimant has against any person or property, to the extent of the amount of any loss, costs, attorneys' fees, and expenses paid by the Company. If requested by the Company, the Insured Claimant shall execute documents to evidence the transfer to the Company of these rights and remedies. The Insured Claimant shall permit the Company to sue, compromise, or settle in the name of the Insured Claimant and to use the name of the Insured Claimant in any transaction or litigation involving these rights and remedies. If a payment on account of a claim does not fully cover the loss of the Insured Claimant, the Company shall defer the exercise of its right to recover until after the Insured Claimant shall have recovered its loss. (b) The Company's right of subrogation includes the rights of the Insured to indemnities, guaranties, other policies of insurance, or bonds, notwithstanding any terms or conditions contained in those instruments that address subrogation rights. ARBITRATION Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title CONDITIONS (Continued) Insurance Arbitration Rules of the American Land Title Association ( "Rules "). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured. All arbitrable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction. 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT (a) This policy together with all endorsements, if any, attached to it by the Company is the entire policy and contract between the Insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage that arises out of the status of the Title or by any action asserting such claim shall be restricted to this policy. (c) Any amendment of or endorsement to this policy must be in writing and authenticated by an authorized person, or expressly incorporated by Schedule A of this policy. (d) Each endorsement to this policy issued at any time is made a part of this policy and is subject to all of its terms and provisions. Except as the endorsement expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsement, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. 16. SEVERABILITY In the event any provision of this policy, in whole or in part, is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision or such part held to be invalid, but all other provisions shall remain in full force and effect. 17. CHOICE OF LAW; FORUM (a) Choice of Law: The Insured acknowledges the Company has underwritten the risks covered by this policy and determined the premium charged therefor in reliance upon the law affecting interests in real property and applicable to the interpretation, rights, remedies, or enforcement of policies of title insurance of the jurisdiction where the Land is located. Therefore, the court or an arbitrator shall apply the law of the jurisdiction where the Land is located to determine the validity of claims against the Title that are adverse to the Insured and to interpret and enforce the terms of this policy. In neither case shall the court or arbitrator apply its conflicts of law principles to determine the applicable law. (b) Choice of Forum: Any litigation or other proceeding brought by the Insured against the Company must be filed only in a state or federal court within the United States of America or its territories having appropriate jurisdiction. 18. NOTICES, WHERE SENT Any notice of claim and any other notice or statement in writing required to be given to the Company under this policy must be given to the Company at First American Title Insurance Company, Attn: Claims National Intake Center,1 First American Way; Santa Ana, CA 92707. Phone: 888-632-1642. Form 5011400 (8/1/09) Page 5 of 5 1 ALTA Owner's Policy of Title Insurance (6- 17 -06)