Foxwood Development ContractCITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
FOXWOOD
DEVELOPMENT CONTRACT
(Developer Installed Improvements)
TABLE OF CONTENTS
SPECIAL PROVISIONS
PAGE
1.
REQUEST FOR PLAT APPROVAL............................................................................SP-1
2.
2.
CONDITIONS OF PLAT APPROVAL........................................................................SP-1
3.
3.
DEVELOPMENT PLANS............................................................................................SP-1
4.
4.
IMPROVEMENTS........................................................................................................
SP -2
5.
TIME OF PERFORMANCE.........................................................................................
SP -2
6.
SECURITY....................................................................................................................SP-2
7.
7.
NOTICE.........................................................................................................................SP-3
8.
S.
OTHER SPECIAL CONDITIONS................................................................................SP-3
9.
GENERAL CONDITIONS...........................................................................................SP-8
OTHERBUILDING.........................................................................................GC-2
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- i
6.
IRON MONUMENTS..................................................................................................
GC -2
7.
LICENSE......................................................................................................................GC-2
8.
SITE EROSION AND SEDIMENT CONTROL.........................................................GC-2
8A. EROSION CONTROL DURING CONSTRUCTION OF A DWELLING OR
OTHERBUILDING.........................................................................................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
0
F.
G.
H.
I.
J.
K.
L.
M.
N.
O.
P.
Q•
R.
S.
T.
U.
V.
W.
X.
Y.
Z.
BuildingPermits...............................................................................................GC-7
Waivers/Amendments.......................................................................................
GC -7
Release..............................................................................................................
GC -7
Insurance...........................................................................................................
GC -7
Remedies...........................................................................................................
GC -8
Assignability.....................................................................................................GC-8
Construction Hours...........................................................................................
GC -8
NoiseAmplification..........................................................................................GC-8
Access...............................................................................................................GC-8
StreetMaintenance............................................................................................GC-8
Storm Sewer Maintenance................................................................................GC-9
Soil Treatment Systems....................................................................................GC-9
Variances...........................................................................................................GC-9
Compliance with Laws, Ordinances, and Regulations.....................................GC-9
Proofof Title ............................... .................................... ..................................
GC -9
SoilConditions................................................................................................GC-10
SoilCorrection................................................................................................GC-10
HaulRoutes..........................................................................................................
GC -10
DevelopmentSigns..............................................................................................GC-10
Construction Plans...............................................................................................
GC -10
As -Built Lot Surveys...........................................................................................
GC- I I
ii
CITY OF CHANHASSEN
DEVELOPMENT CONTRACT
(Developer Installed Improvements)
FOXWOOD
SPECIAL PROVISIONS
AGREEMENT dated July 25, 2016 by and between the CITY OF CHANHASSEN, a
Minnesota municipal corporation (the "City"), and, Foxwood, LLC, a Minnesota limited liability
company (the "Developer").
1. Request for Plat Approval. The Developer has asked the City to approve a plat for
FOXWOOD (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 July 25, 2016, prepared by Alliant Engineering.
Plan B: Grading, Drainage and Erosion Control Plan dated June 28, 2016, prepared by Alliant
Engineering.
Plan C: Plans and Specifications for Improvements dated June 28, 2016, prepared by Alliant
Engineering.
Plan D: Landscape Plan dated June 28, 2016, prepared by Alliant 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, 2016. 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 $ 2,177,546.80. The amount of
the security was calculated as 110% of the following:
Sanitary Sewer $ 601,800.00
Water main $ 271,200.00
Storm Sewer-, Drainage System, including cleaning and maintenance $ 243,600.00
Streets $ 686,600.00
Sub -total, Construction Costs $ 1,803,200.00
Street lights and signs (estimate 9 lights @ $1,500 and 12 signs @ $50) $ 14,100.00
Engineering, surveying, and inspection (7% of construction costs) $ 126,224.00
Landscaping (2% of construction costs) $ 36,064.00
Sub -total, Other Costs $176,388.00
TOTAL COST OF PUBLIC IMPROVEMENTS $1,979,588.00
SECURITY AMOUNT (110% of $1,979,588.00) $ 2,177,546.80
This breakdown is for historical reference; it is not a restriction on the use of the security. The security
shall be subject to the approval of the City. The City may draw down the security, without notice, for
SP -2
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:
Bill Coffinan
Foxwood, LLC
1000 Boone Avenue North, Suite 400
Golden Valley, MN 55427
Phone: 612-202-0692
Notices to the City shall be in writing and shall be either hand delivered to the City Manager, or
mailed to the City by certified mail_ in care of the City Manager at the following address: Chanhassen
City Hall, 7700 Market Boulevard, P.O. Box 147, Chanhassen, Minnesota 55317, Telephone (952)
227-1100.
8. Other Special Conditions.
A. SECURITIES AND FEES
A $2,177,546.80 letter of credit or escrow for the developer -installed improvements, the
$616,624.04 cash administration fee and the fully -executed development contract must be
submitted and shall be submitted prior to scheduling a pre -construction meeting. The cash
fee was calculated as follows:
Administration fee (based on estimated construction
cost: 2.5% of $1,000,000 + 1.5% of $803,200)
$37048.00
'
Escrow for future removal of temporary cul de sac and
future extension of "Road A" to property line
$33,750.00
Escrow for future removal of temporary lift station
$10,000.00
GIS fee: 52 parcels @ $10/parcel + $25 for the plat
$ 545.00
Lift Station 32 Charge: 46 units @ $1,059.24/unit
$ 48,725.04
Park Dedication Fee: 46 parcels @ $5,800/parcel
$ 266,800.00
Partial payment of City sewer and water hookup fees:
46 units $691/unit (sewer) + $2,065/unit (water)
$ 126,776.00
Street light operating fee: 8 lights @ $300/light
$ 2,400.00
Surface Water Management Fee
$ 90,580.00
Total
$ 616,624.04
SP -3
B. CITY CONDITIONS OF APPROVAL
1. Building:
a. Final grading plans and soil reports must be submitted to the Inspections Division
before building permits will be issued.
b. Buildings may be required to be designed by an architect and/or engineer as
determined by the Building Official.
c. Engineered design and building permits are required for retaining walls exceeding
four feet in height.
d. Each lot must be provided with a separate sewer and water service.
e. Demolition permits must be obtained before demolishing any structures.
Proper removal, abandonment or sealing of storage tanks, on-site septic systems,
wells, etc. is required. Permits are required, as applicable.
f. If applicable, existing home(s) affected by the new street will require address
changes.
g. Provide a 1:200 "clean" plat drawing.
2. En ineering:
a. The 16.5' wide telephone easement through the site must be vacated before the final
plat is filed at Carver County.
b. The well and septic system on the property must be properly abandoned before a
building permit is issued.
c. Label the contours on Sheet 2 of the Existing Conditions Survey.
d. Prior to commencement of site grading the grading plan must be revised so that there
is at least five feet from the edge of the temporary cul-de-sac to the retaining wall.
e. The developer shall dedicate an easement over the temporary cul-de-sac; the
easement exhibit shall be submitted with the final plat application.
f. The private street within Outlot B and must be built to a 7 -ton design.
[• '
g. Pedestrian curb ramps from the sidewalks to the street must be ADA -compliant.
h. If groundwater is encountered during construction, the low floor elevation of the
homes must be adjusted accordingly.
i. The final plat must include an oversized drainage and utility easement at the back of
Lot 1, Block 6 to encompass the drainage swale.
j. Per Section 18-40 (4) d. 2. v. a drain tile service is required for Lots 1-4 Block 5, Lot
6 Block 5; and Lots 1-3 Block 6 as these lots are proposed to drain from the back of
the lot towards the street.
k. On the grading plan label the existing contours.
1. On Sheet 18 modify Note 2 to state that 10' horizontal separation is required between
water and sewer lines.
m. The final plat mylars must include the street names approved by the Fire Marshal.
n. A guard rail must be installed at the top of the retaining wall near the temporary cul-
de-sac.
o. The developer shall post a $33,750 escrow to be used towards the removal of the
temporary cul-de-sac at the end of Road A, extending Road A to the property line and
extending the sidewalk to the property line.
p. Oudot B shall be deeded to the owners of 9250 and 9350 Great Plains Boulevard.
q. The developer must acquire the necessary permission for off-site work at 9350 Great
Plains Boulevard before that property's driveway is realigned.
r. Once the private street within Outlot B is paved with the base course the developer
must remove the existing driveway from Highway 101 to 9250 and 9350 Great Plains
Boulevard.
s. Barricades must be installed where the sidewalk ends on the south end of Road A.
t. The developer shall pay $48,725.04 for the development's portion of the cost of Lift
Station 32.
u. The developer must submit a $10,000 escrow with the development contract; this
escrow will be used for the removal of the temporary lift station when Road A is
extended and the lift station at Powers Boulevard and TH 212 is installed.
SP -5
v. The City will reimburse the developer for the cost of oversizing the water main from
an eight inch lateral to a 12" trunk main and for the pressure reducing valve.
3. Environmental Resources:
Fire:
Parks:
a. Prior to any grading, the applicant shall install tree preservation fencing using metal
stakes. The fencing shall be placed fencing at the grading limits. Tree #2524 shall be
included in the fencing area rather than fenced separately. These protections shall
remain in effect until construction is completed.
b. Signage identifying outlot natural areas will be posted at property corners and angle
point on lots 1, 3-6, 8-9, 11, 17-18, block 1 and lots 1, 2, block 2 and lots 8, 9, block
3 and lot 1-2, block 4 and lots 4 and 6, block 5. These must be installed prior to
selling the lot.
a. A 3 -foot clear space shall be maintained around fire hydrants.
b. Submit propose street names to Chanhassen Fire Marshal and Chanhassen Building
Official for review and approval.
c. Street signs (temporary allowed) shall be installed prior to building permits being
issued. Fire Marshal must approve signage.
d. Prior to combustible construction fire hydrants shall be made serviceable,
e. No burning permits will be issued for tree/brush removal.
f Prior to combustible home construction fire apparatus access roads capable of
supporting the weight of fire apparatus shall be made serviceable.
a. Full park dedication fees shall be collected per city ordinance in lieu of requiring
parkland dedication.
b. Dedication of an outlot adjacent to Lot 12, Block 5 and across the southern portion of
Lot 5, Block 5 to accommodate future construction of a trail.
c. Planning, engineering and construction of two planned 10 -foot wide trail connections
leading from two cul-de-sacs into the Fox Woods Preserve.
d. Planning, engineering and construction of a planned 10 -foot wide Highway 101 trail
connection between the current trail terminus at the Bandimere Park Pedestrian
Underpass and the northern terminus of the plat adjacent to and along Highway 101.
e. Trail right of ways within the subdivision shall be provided within outlots as a
condition of the plat. Acquisition of trail easements outside of the plat shall be the
responsibility of the City of Chanhassen.
f. The Developer shall be responsible for the installation and payment of the two
planned 10 -foot wide trail connections leading from two cul-de-sacs into the Fox
Woods Preserve.
g. For those sections of the Hwy 101 trail situated north and south of their property
boundaries, the Developer shall be reimbursed by the City of Chanhassen for the full
cost of planning, engineering and construction of a planned 10 -foot wide Highway
101 trail connection between the current trail terminus at the Bandimere Park
Pedestrian Underpass and the northern terminus of the plat along Highway 101.
h. For that section of the Highway 101 trail located within or adjacent to the
Developer's project boundary, the applicant shall be reimbursed by the City for the
cost of the aggregate base, trail surfacing, retaining walls and storm water systems
utilized to construct the trail. This reimbursement payment shall be made upon
completion and acceptance of the trail and receipt of an invoice documenting the
actual costs for the construction materials noted. Labor and installation for the trail
surface and design, and engineering and testing services for all components of the
Developers section, are not reimbursable expenses.
i. All trails shall be 10 feet in width, surfaced with asphalt and constructed to meet city
specifications.
j. The granting of a permanent 20 foot wide trail easement across the rear of lots 8 and
9, Block 3.
Water Resources Coordinator:
a. The wetlands cannot be used to meet rate control. Rate control must be achieved
prior to discharge to any of the wetlands, MN DOT right-of-way or adjoining
properties.
b. The infiltration basin areas shall be protected from construction traffic and other
construction related activities throughout the duration of the project. This shall be
noted on the grading plan, in the SWPPP and shown with pre -construction silt fence
location.
SP -7
c. The infiltration areas shall be graded last. The tributary area shall be graded and
stabilized prior to excavation of the infiltration basins.
d. The mass grade phasing schedule shall include stripping and stockpiling of top soil
material.
e. The grading and erosion plan shall include stockpile locations.
f. A detailed planting schedule and plan shall be included for each infiltration basin.
g. The developer shall be responsible for procuring the NPDES construction permit and
providing proof to the city prior to any land disturbing activities.
h. The development shall meet the CUP conditions for the Bluff Creek Overlay District.
i. Signage will be required at every lot corner and angle point along the private lots
adjacent to the wetlands not bound by the BCOD. These must be installed prior to
selling the lot.
Any grading within wetland buffers must be restored .with native vegetation. A
planting schedule and vegetation maintenance plan of at least 3 years shall be
provided to the city for review and approval.
k. The Storm Water Utility Connection Charge due at final plat is $90,580.00.
1. The City Wetland Alteration Permit (WAP) and the State Wetland Conservation Act
(WCA) replacement plan process required for this development is in process, therefore
Council approval of the final plat, development contract, et cetera is conditioned upon
approval of the WAP and WCA replacement plan.
9. General Conditions. The general conditions of this Contract are attached as Exhibit
"B" and incorporated herein.
1 .I
CITY OF CHANHASSEN
:•
(SEAL)
AND:
Denny Laufenburger, Mayor
Todd Gerhardt, City Manager
FOXWOOD, LLC:
Tyler Wenkus, Chief Manager
STATE OF MINNESOTA)
(ss.
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me this day of ,
2016, by Denny Laufenburger, 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.
NOTARY PUBLIC
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
2016, by Tyler Wenkus, Chief Manager of Foxwood, LLC, a Minnesota limited liability company,
on behalf of the company.
DRAFTED BY:
City of Chanhassen
7700 Market Boulevard
P.O. Box 147
Chanhassen, MN 55317
(952) 227-1100
SP -9
NOTARY PUBLIC
EXHIBIT "A"
TO
DEVELOPMENT CONTRACT
LEGAL DESCRIPTION OF SUBJECT PROPERTY:
The East Haft of the East Half of the South Half of the Southeast Quarter, and the Southeast Quarter of the Northeast Quarter of the Southeast
Quarter, all in Section 23, Township 116, Range 23, Carver County, Minnesota.
And also that part of the North Half of the Southwest Quarter of Section 24, Township 116, Range 23, Carver County, Minnesota, lying
southerly of the north 730.00 feet as measured along westerly line thereof and lying westerly of the centerline of State Highway No. 101, the
centerline of whlch Is described as follows: Beginning at a point on the North line of the Southwest Quarter of Section 24, Township 116,
Range 23, a distance of
632.52 feet east of the Northwest corner of said Southwest Quarter, the bearing of the North line of the Southwest Quarter Is assumed to be
South 88 degrees 46 minutes 29 seconds East, thence South 4 degrees 24 minutes 47 seconds West a distance of 413.72 feet thence on a
tangential curve, concave to the east having a central angle of 11 degrees 38 minutes 21 seconds and a radius of 1962.29 feet a distance of
398.62 feet, thence South 7 degrees 13 minutes 34 seconds East tangent to the last described curve, a distance of 217.65 feet thence on a
tangential curve, concave to the west having a central angle of 14 degrees 29 minutes 17 seconds and a radius of 1166.15 feet a distance of
294.88 feet, more or less, to a point on the South line of the North Half of the Southwest Quarter of Section 24 and there terminating said
point distance 660.44 feet easterly of the Southwest corner of the North Half of the Southwest Quarter.
Except that part taken by the State of Minnesota in Final Certificate filed August 27, 2009, as Document No. A506726.
Except that part taken by the City of Chanhassen in Final Certificate filed May 31, 2013, as Document No. A577806.
AND,
That part of the West 271.79 feet of the North 762.28 of the Southwest Quarter of the Southwest Quarter Section 24 Township 116 Range 23,
and that part of the North 30.00 feet of said Southwest Quarter of the Southwest Quarter lying east of the West 271.79 feet thereof and
westerly of the center line of Hwy 101, excepting that part of the North 330.00 feet of the East 16.00 feet of the West 271.79 feet of said
Southwest Quarter of the Southwest Quarter lying south of the North 180.00 feet thereof, and that part of the South 732.28 feet of North 762.28
feet of said Southwest Quarter of the Southwest Quarter.
AND
The West 271.79 feet of the North 762.28 feet of the Southwest Quarter of the Southwest Quarter, Section 24, Township 116 North, Range 23
West, Carver County Minnesota EXCEPT That part of the North 330.00 feet of the East 16.00 feet of the West 271.79 feet of the Southwest
Quarter of the Southwest Quarter, Section 24, Township 116 North, Range 23 West, lying South of the North 180.0 feet, Carver County,
Minnesota.
IME
That part of the North 30.00 feet of said Southwest Quarter of the Southwest Quarter, lying East of the West 271.79 feet thereof and Westerly of
the centerline of State Highway No. 101, EXCEPT that part of the Southwest Quarter of the Southwest Quarter of Section 24, Township 116
North, Range 23 West, shown as Parcel 71 A on Minnesota Department of transportation Right of Way Plat Numbered 10-19 as the same Is on
file and of record in the office of the County Recorder in and for Carver County, Minnesota acquired by the State of Minnesota in Document
No.A406988,and
EXCEPT that part taken by the City of Chanhassen In Final Certificate flied December 18, 2012, as Document No. A567969.
AND
That part of the South 732.28 feet of the North 762.28 feet of the Southwest Quarter of the Southwest Quarter, Section 24, Township 116 North,
Range 23 West, Carver County, Minnesota, lying East of the West 271.79 feet thereof and Westerly of the centerline of State Highway No. 101,
described as: That part of the North 180 feet of the East 16.00 feet of the West 287.79 feet of the Southwest Quarter of the Southwest Quarter,
Section 24, Township 116 North, Range 23 West, Carver County, Minnesota, lying South of the North 30.00 feet thereof, all in Carver County,
Minnesota.
Abstract Property.
MORTGAGE HOLDER CONSENT
TO
DEVELOPMENT CONTRACT
which holds a mortgage on the subject property, the development of which is governed by the
foregoing Development Contract, agrees that the Development Contract shall remain in full force and
effect even if it forecloses on its mortgage.
Dated this day of , 20_
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this
20_, by
DRAFTED BY:
City of Chanhassen
7700 Market Boulevard
P.O. Box 147
Chanhassen, MN 55317
(952) 227-1100
day of
NOTARY PUBLIC
FEE OWNER CONSENT
TO
DEVELOPMENT CONTRACT
fee owners of all or part of the subject property, the development of which is governed by the
foregoing Development Contract, affirm and consent to the provisions thereof and agree to be bound
by the provisions as the same may apply to that portion of the subject property owned by them.
Dated this day of 520
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this
20®, by
DRAFTED BY:
City of Chanhassen
7700 Market Boulevard
P.O. Box 147
Chanhassen, MN 55317
(952) 227-1100
day of
NOTARY PUBLIC
IRREVOCABLE LETTER OF CREDIT
No. _
Date:
TO: City of Chanhassen
7700 Market Boulevard, Box 147
Chanhassen, Minnesota 55317
Dear Sir or Madam:
We hereby issue, for the account of (Name of Developer)- and in your favor, our Irrevocable
Letter of Credit in the amount of $ , available to you by your draft drawn on sight on the
undersigned bank.
The draft must:
a) Bear the clause, "Drawn under Letter of Credit No. , dated
2 , of (Name of Bank) "
b) Be signed by the Mayor or City Manager of the City of Chanhassen.
c) Be presented for payment at (Address of Bank) , on or before 4:00 p.m. on November 30,
This Letter of Credit shall automatically renew for successive one-year terms unless, at least forty-
five (45) days prior to the next annual renewal date (which shall be November 30 of each year), the Bank
delivers written notice to the Chanhassen City Manager that it intends to modify the terms of, or cancel, this
Letter of Credit. Written notice is effective if sent by certified mail, postage prepaid, and deposited in the U.S.
Mail, at least forty-five (45) days prior to the next annual renewal date addressed as follows: Chanhassen
City Manager, Chanhassen City Ball, 7700 Market Boulevard, P.O. Box 147, Chanhassen, MN 55317, and is
actually received by the City Manager at least thirty (30) days prior to the renewal date.
This Letter of Credit sets forth in full our understanding which shall not in any way be modified,
amended, amplified, or limited by reference to any document, instrument, or agreement, whether or not
referred to herein.
This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw
may be made under this Letter of Credit.
This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and
Practice for Documentary Credits, International Chamber of Commerce Publication No. 600.
We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly
honored upon presentation.
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 permits from
the Metropolitan Council Environmental Services and other pertinent agencies before proceeding
GC -1
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 permits are issued, the erosion and sediment control
plan, Plan B, shall be implemented, inspected, and approved by the City. The City may impose
additional erosion and sediment control requirements if they would be beneficial. All areas disturbed
by the excavation and backfilling operations shall be reseeded forthwith after the completion of the
work in that area. Except as otherwise provided in the erosion and sediment control plan, seed shall
be certified seed to provide a temporary ground cover as rapidly as possible. All seeded areas shall
be fertilized, mulched, and disc anchored as necessary for seed retention. The parties recognize that
time is of the essence in controlling erosion and sediment transport. If the Developer does not comply
with the erosion and sediment control plan and schedule of supplementary instructions received from
the City, the City may take such action as it deems appropriate to control erosion and sediment
transport at the Developer's expense. The City will endeavor to notify the Developer in advance of
any proposed action, but failure of the City to do so will not affect the Developer's and City's rights
or obligations hereunder. No development will be allowed and no building permits will be issued
unless the plat is in full compliance with the erosion and sediment control requirements. Erosion and
sediment control needs to be maintained until vegetative cover has been restored, even if construction
has been completed and accepted. After the site has been stabilized to where, in the opinion of the
City, there is no longer a need for erosion and sediment control, the City will authorize the removal
of the erosion and sediment control, i.e. hay bales and silt fence. The Developer shall remove and
dispose of the erosion and sediment control measures.
8a. Erosion Control During Construction of a Dwelling or Other Building. Before a
building permit is issued for construction of a dwelling or other building on a lot, a $500.00 cash
escrow or letter of credit per lot shall also be furnished to the City to guarantee compliance with City
Code § 7-22.
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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 Interpleader
action pursuant to Rule 22, Minnesota Rules of Civil Procedure for the District Courts, to draw upon
the letters of credit in an amount up to 125% of the claim(s) and deposit the funds in compliance with
the Rule, and upon such deposit, the Developer shall release, discharge, and dismiss the City from
any further proceedings as it pertains to the letters of credit deposited with the District Court, except
that the Court shall retain jurisdiction to determine attorneys' fees.
12. Park Dedication. The Developer shall pay full park dedication fees in conjunction
with the installation of the plat improvements. The park dedication fees shall be the current amount
in force at the time of final platting pursuant to Chanhassen City Ordinances and City Council
resolutions.
13. Landscaping. Landscaping shall be installed in accordance with Plan D. Unless
otherwise approved by the City, trees not listed in the City's approved tree list are prohibited. The
minimum tree size shall be two and one-half (2%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 six (6) inches of topsoil as a base. Seed or sod shall also be placed on all disturbed areas
of the lot. If these improvements are not in place at the time a certificate of occupancy is requested,
a financial guarantee of $750.00 in the form of cash or letter of credit shall be provided to the City.
These conditions must then be complied with within two (2) months after the certificate of occupancy
issued, except that if the certificate of occupancy is issued between October 1 through May 1 these
conditions must be complied with by the following July 1st. Upon expiration of the time period,
inspections will be conducted by City staff to verify satisfactory completion of all conditions. City
staff will conduct inspections of incomplete items with a $50.00 inspection fee deducted from the
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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.
r_1 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. Book -up Charges, At the time of final plat approval the Developer shall pay
30% of the City Sewer Hook-up charge and 30% of the City Water hook up charge for each lot
in the plat in the amount specified in Special Provision, Paragraph 8, of this Development
Contract. The balance of the hook-up charges is collected at the time building permits are issued
are based on 70% of the rates then in effect, unless a written request is made to assess the costs
over a four year term at the rates in effect at time of application.
18. Public Street Lighting. The Developer shall have installed and pay for public street
lights in accordance with City standards. The public street lights shall be accepted for City ownership
and maintenance at the same time that the public street is accepted for ownership and maintenance.
A plan shall be submitted for the City Engineer's approval prior to the installation. Before the City
signs the final plat, the Developer shall pay the City a fee of $300.00 for each street light installed in
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the plat. The fee shall be used by the City for furnishing electricity and maintaining each public street
light for twenty (20) months.
19. Signage. All street signs, traffic signs, and wetland monumentation required by the
City as a part of the plat shall be furnished and installed by the City at the sole expense of the
Developer.
20. House Pads. The Developer shall promptly furnish the City "as -built" plans
indicating the amount, type and limits of fill on any house pad location.
21. Responsibility for Costs.
A. The Developer shall pay an administrative fee in conjunction with the installation
of the plat improvements. This fee is to cover the cost of City Staff time and overhead for items such
as review of construction documents, preparation of the Development Contract, monitoring
construction progress, processing pay requests, processing security reductions, and final acceptance
of improvements. This fee does not cover the City's cost for construction inspections. The fee shall
be calculated as follows:
i) if the cost of the construction of public improvements is less than $500,000,
three percent (3%) of construction costs;
ii) if the cost of the construction of public improvements is between $500,000 and
$1,000,000, three percent (3%) of construction costs for the first $500,000 and
two percent (2%) of construction costs over $500,000;
iii) if the cost of the construction of public improvements is over $1,000,000, two
and one-half percent (2'/%) of construction costs for the first $1,000,000 and
one and one-half percent (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.
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.
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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 j ob
site offices shall be approved by the City Engineer as a part of the pre -construction meeting for
installation of public improvements. Trailers shall be removed from the subject property within thirty
(3 0) 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
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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 pen -nits will not be issued in the plat until sanitary
sewer, watermain, and storm sewer have been installed, tested, and accepted by the City, and the
streets needed for access have been paved with a bituminous surface and the site graded and
revegetated in accordance with Plan B of the development plans.
G. Waivers/Amendments. The action or inaction of the City shall not constitute a
waiver or amendment to the provisions of this Contract. To be binding, amendments or waivers shall
be in writing, signed by the parties and approved by written resolution of the City Council. The City's
failure to promptly take legal action to enforce this Contract shall not be a waiver or release,
H. Release. This Contract shall run with the land and may be recorded against the
title to the property. After the Developer has completed the work required of it under this Contract,
at the Developer's request the City Manager will issue a Certificate of Compliance. Prior to the
issuance of such a certificate, individual lot owners may make as written request for a certificate
applicable to an individual lot allowing a minimum of ten (10) days for processing.
I. Insurance. Developer shall take out and maintain until six (6) months after the City
has accepted the public improvements, public liability and property damage insurance covering
personal injury, including death, and claims for property damage which may arise out of Developer's
work or the work of its subcontractors or by one directly or indirectly employed by any of them.
Limits for bodily injury and death shall be not less than $500,000 for one person and $1,000,000 for
each occurrence; limits for property damage shall be not less than $500,000 for each occurrence; or a
combination single limit policy of $1,000,000 or more. The City shall be named as an additional
insured on the policy, and the Developer shall file with the City a certificate evidencing coverage
prior to the City signing the plat. The certificate shall provide that the City must be given ten (10)
days advance written notice of the cancellation of the insurance. The certificate may not contain any
disclaimer for failure to give the required notice.
J. Remedies. Each right, power or remedy herein conferred upon the City is
cumulative and in addition to every other right, power or remedy, expressed or implied, now or
hereafter arising, available to City, at law or in equity, or under any other agreement, and each and
every right, power and remedy herein set forth or otherwise so existing may be exercised from time
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to time as often and in such order as may be deemed expedient by the City and shall not be a waiver
of the right to exercise at any time thereafter any other right, power or remedy.
K. Assignability. The Developer may not assign this Contract without the written
permission of the City Council. The Developer's obligation hereunder shall continue in full force and
effect even if the Developer sells one or more lots, the entire plat, or any part of it.
L. Construction Hours. Construction hours, including pick-up and deliveries of
material and equipment and the operation of any internal combustion engine, may only occur
from 7:00 a.m. to 6:00 p.m. on weekdays, from 9:00 a.m. to 5:00 p.m. on Saturdays with no such
activity allowed on Sundays or on legal holidays. Contractors must require their subcontractors,
agents and supplies to comply with these requirements and the Contractor is responsible for their
failure to do so. Under emergency conditions, this limitation may be waived by the written consent
of the City Engineer. If construction occurs outside of the permitted construction hours,
the Contractor shall pay the following administrative penalties:
First violation $ 500.00
Second violation $ 1,000.00
Third & subsequent violations All site development and construction must
cease for seven (7) calendar days
M. Noise Amplification. The use of outdoor loudspeakers, bullhorns, intercoms, and
similar devices is prohibited in conjunction with the construction of homes, buildings, and the
improvements required under this contract. The administrative penalty for violation of construction
hours shall also apply to violation of the provisions in this paragraph.
N. Access. All access to the plat prior to the City accepting the roadway
improvements shall be the responsibility of the Developer regardless if the City has issued building
permits or occupancy permits for lots within the plat.
O. Street Maintenance. The Developer shall be responsible for all street maintenance
until streets within the plat are accepted by the City. Warning signs shall be placed by the Developer
when hazards develop in streets to prevent the public from traveling on same and directing attention
to detours. If streets become impassable, the City may order that such streets shall be barricaded and
closed. The Developer shall maintain a smooth roadway surface and provide proper surface drainage.
The Developer may request, in writing, that the City plow snow on the streets prior to final acceptance
of the streets. The City shall have complete discretion to approve or reject the request. The City shall
not be responsible for reshaping or damage to the street base or utilities because of snow plowing
operations. The provision of City snow plowing service does not constitute final acceptance of the
streets by the City.
P. Storm Sewer Maintenance. The Developer shall be responsible for cleaning and
maintenance of the storm sewer system (including ponds, pipes, catch basins, culverts and swales)
within the plat and the adjacent off-site storm sewer system that receives storm water from the plat.
The Developer shall follow all instructions it receives from the City concerning the cleaning and
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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 Re lations. 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 fixrnish the City with evidence
satisfactory to the City that it has the authority of the fee owners and contract for deed purchasers to
enter into this Development Contract.
U. Soil Conditions. The Developer acknowledges that the City makes no
representations or warranties as to the condition of the soils on the property or its fitness for
construction of the improvements or any other purpose for which the Developer may make use of
such property. The Developer further agrees that it will indemnify, defend, and hold harmless the
City, its governing body members, officers, and employees from any claims or actions arising out of
the presence, if any, of hazardous wastes or pollutants on the property, unless hazardous wastes or
pollutants were caused to be there by the City.
V. Soil Correction. The Developer shall be responsible for soil correction work on
the property. The City makes no representation to the Developer concerning the nature of suitability
of soils nor the cost of correcting any unsuitable soil conditions which may exist. On lots which have
no fill material a soils report from a qualified soils engineer is not required unless the City's building
inspection department determines from observation that there may be a soils problem. On lots with
fill material that have been mass graded as part of a multi -lot grading project, a satisfactory soils report
from a qualified soils engineer shall be provided before the City issues a building permit for the lot.
On lots with fill material that have been custom graded, a satisfactory soils report from a qualified
soils engineer shall be provided before the City inspects the foundation for a building on the lot.
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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
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