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Home My WebLink AboutDevelopers agreement �.SoD �r'Q�/�e�`s ,d� �� y4y. Doc No 9032753 08/�-�/2007 03:51 PM Certified filed and or r �orded on above date: Office of th�ounty Recorder Hennepi County, Minnesota Michael Cunniff, County Recorder � TranslD 339252 Deputy 26 Fees $35.50 DOC $10.50 SUR $46.00 Total Z-�� 1�►�:�1 A"�?Q��'.�.�:� ��,�R `TAXF�AYEF� SEFiVIC�� TRAN5FEI� �NT�R�p AUG 3 1 2007 �� o�NTr r�itv�i. � �i w��- L`i . CITY OF ORONO HENNEPIN COUNTY, MINNESOTA DEVELOPER'S AGREEMENT FOR BRACKETTS POINT 2ND ADDITION (Name of Development) BRUCE G. PADDOCK (Name of Developer) 1 THIS AGREEMENT, made and entered into this I f day of �(a c•., +�t,�T , 2007, by and between the City of Orono, a municipal � corporation organized under the laws of the State of Minnesota (hereinafter called "City"), and Bruce G. Paddock, single, his heirs, successors and assigns, (hereinafter called "Developer"). WITNESSETH: WHEREAS, the Developer has made application to the City Council for approval of a the plat of BRACKETTS POINT 2ND ADDITION, the approval of which required certain public and private improvements including installation of a new private road, relocation of utility services, storm sewer improvements, and site grading and landscaping improvements; and WHEREAS, the City Council has granted final approval far such development per the findings and conditions of Resolution No.��w adopted ��J , 2007 on the condition that the Developer complies with all recommendations of the City Engineer, which includes entering into this agreement to provide for the installation of improvements hereinafter described on the terms and conditions set forth. Page 1 of 7 � Initials of Developer Initials of City Clerk� NOW, THEREFORE, in consideration of the premises and of the mutual promises and conditions hereinafter contained, it is hereby agreed as follows: l. Property Description. This Agreement shall apply only to the following described property located in Hennepin County, Minnesota: Lots 1 and 2, Block 1 and Outlots A and B, BRACKETTS POINT 2ND ADDITION, Hennepin County, Minnesota (hereinafter the "Property") 2. Improvements. In accordance with the policies and ordinances of the City, the following described public and private improvements (hereinafter collectively called the "Improvements") shall be constructed and installed on the terms and conditions hereinafter contained. - Construction of a new roadway (portions public, portions private) - Construction of new municipal sewer lines and individual services - Construction of stormwater management improvements - Construction of grading and landscaping improvements - Relocation of public utility lines (gas, electric, telephone, cable) 3. Construction Plans. Final sets of the following described detailed plans and specifications far the complete installation of the Improvements prepared by Mark Gronberg of Gronberg Associates shall be submitted by the Developer for the approval of the City prior to the start of construction. The plans and specifications shall conform to all current City standards for all applicable work: Road and Sanitary Sewer Plan Grading Plan Storm Water Pollution Prevention Plan (SWPPP) Landscaping Plan (including required boulevard trees) 4. Construction of Improvements A. Commencement Date — The construction of Improvements shall begin no later than 12/31/07 . B. Completion Date — All Improvements shall be completed no later than 12/31/08 Page 2 of 7 Initials of Developer lnitials of City Clerk C. Contractars — The Developer shall select, retain and supervise the Contractor(s) responsible for the construction of the Improvements. The City reserves the right to require satisfactory proof of successful experience and adequate financial status of any such contractor. Where required by City ordinance, the contractor shall tirst obtain a license from the City. D. Pre-Construction Conference — Prior to the start of any construction, the Developer and the Developer's contractor shall meet with the responsible City official to review construction plans and schedules. E. Permits—Prior to the start of any construction, the Developer's contractor shall apply for and receive all necessary permits from the City and/ar government agencies having jurisdiction. F. Construction — The construction, installation and materials shall be in accordance with the plans and specifications approved by the City. G. Insurance — The Developer will cause each person who constructs and installs any Improvements to maintain complete insurance coverage including Workmen's Compensation, Liability and Property Damage. 5. Performance Security. For the purposes of assuring to the City that the Improvements will be completed according to the terms of this Agreement, and that the Developer will pay all claims for work done and materials and supplies furnished, the Developer or its general contractor will deposit with the City prior to issuance of site grading and building permits an irrevocable Letter of Credit (LOC) from a local (Twin Cities area) financial institution in a form satisfactory to the City, providing that the City is able to draw upon such letter of credit in its sole discretion to complete the Improvements if the Developer fails to satisfactorily complete the work priar to the completion date specified in Section Four (4) above. Further, if the required Improvements are not completed at least 30 days prior to the expiration of the LOC, the City may also draw on the LOC. If the security is drawn down, the draw shall be used to cure the default. The amount of the LOC shall be 150% of the estimated Improvements cost. The estimated Improvements cost is $165,915.00 per the City Engineer's estimate attached hereto as Exhibit A; therefore, the LOC amount shall be $248,873.00. As substantial elements of the Improvements are completed and approved by the City Engineer, the City will authorize reduction of the LOC in an amount equal to 150% of the cost estimate for that phase of the Improvements deemed completed, but in not case shall the LOC be reduced to a point less than 10% of the original arnount until all Improvements are complete and accepted by the City. The LOC Page 3 of 7 ��'" Initials of Developer Initials of City Clerk� shall expire no sooner than one year after the completion date specified in Section Four(4) above, to allow for at least one freeze-thaw cycle for settlement. 6. Fees and Expenses. The Developer agrees to pay all City fees required per the current City Fee Schedule and further agrees to completely reimburse the City for all the variable additional expenses it incurs in regard to the review and approval of the Improvements including, but not limited to, direct City payroll and overhead, costs, and fees paid to consultants and other professionals. Developer shall establish a Construction Escrow with the Ciry in the amount of$5,000.00 to ensure payment of fees and expenses. 7. Resolutions of City. Developer agrees to be bound by the provisions set forth in all resolutions of the City Council approving the Development. 8. Binding Effect. The terms and provisions hereof shall be binding upon and inure to the benefit of the heirs, representatives, successors and assigns of the parties hereto and shall be binding deemed covenants running with the land. References herein to Developer, if there be more than one, shall mean each and all of them. This Agreement, to be executed by the Developer, shall be placed of record so as to give notice hereof to subsequent purchasers and encumbrancers of all or any part of the subdivision and all recording fees, if any, shall be paid by the Developer. 9. Notices. Required notices to the Developer shall be in writing, and shall be either hand delivered to the Developer, their employees or agents, or mailed to the Developer by registered mail at the following addresses: Notice to City Notice to Developer City of Orono c/o George W. Stickney Clerk/Administrator Coldwell Banker Burnet P.O. Box 66 201 East Lake Street Crystal Bay, MN 55323 Wayzata, NI�T 55391 10. Incorporation by Reference. All plans, special provisions, proposals, specifications and coniracts far the Improvements furnished and let pursuant to this Agreement shall be and hereby are made a part of this Agreement by reference as fully as if set out herein in full. 1 l. Disclaimer by City. It is understood and agreed that the City, the City Council, and the agents and employees of the City shall not be personally liable or responsible in any manner to the Developer or Developer's contractors, subcontractors, materialmen, laborers, or any other person, firm or corporation, for any debt, claim, demand, damages, actions, or causes of action of any kind or character, arising out of or by reason of the execution of this agreement or the performance and completion of the Improvements. Page 4 of 7 Initials of Developer �� Initials of City Clerk_,�,� 12. Hold Harmless and Indemnification. The Developer shall indemnify and hold harmless the City, the City Council, and the agents and employees of the City from and against all claims, damages, losses or expenses, including attorney fees, which the City, City Council and agents and employees of the City may suFfer or for which it may be held liable, arising out of or resulting from the assertion against them of any claims, debts ar obligations in consequence of the performance of this Agreement by the Developer, its employees, agents or subcontractors, whether or not caused in part by a party indemnified hereunder. 13. Remedy for Default. Default by the Developer of any of the terms of this Agreement shall automatically result in the suspension or withholding of all permits, licenses, occupancy certificates or other authorizations issued by the City in connection with the property included in this development. A. The Developer hereby grants to the City, its agents and its employees, the right to enter on the property for the specific purpose of constructing or completing any and all of the agreed upon Improvements should the Developer not complete those Improvements by the date specitied in Section 4-B. B. The remedies afforded to the City under this Section shall be in addition to any other remedies to which the City may be entitled by law or other agreement. IN WITNESS WHEREOF, the City and the Developer have caused this Agreement to be duly executed on the day and year first above written. CITY OF ORONO � B . ` ��1�� ( ayor) � . � G' gy: �r. .�-�--- (City Clerk) DEVELOPER , � By: Bruce G. Paddock Page 5 of 7 Initials of Developer Initials of City Clerk� Reviewed for Administration: �� .-�z _�-� ./`��`-.� �-�� Date: �� By; (Planni Depa ' t� � ,%� ��-�._._ By: �� ,:�� (City Adm' istrator) This instrument was drafted by: City of Orono 2750 Kelley Parkway P.O. Box 66 Crystal Bay, MN 55323 Page 6 of 7 '�'` Initials of Developer Initials ofCity Clerk � ti,� STATE OF MINNESOTA COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me on this � day of , 2007 by James M. White, Mayor of the City of Orono, a Minnesota mun cipal corporation and said instrument was executed on behalf of the City. 1 � �-� � , Not�� ry/Publie / �',;' ,�,,�✓�ve: �� JA�Q�I�LYN M. Y�7UNG STATE OF MINNESOTA ��!�He-Minnesota COUNTY OF HENNEPIN '-@5��"�`�". �"'aa��3�,zoto The foregoing instrument was acknowledged before me on this`� day of , 2007 by Linda S. Vee, City Clerk of the City of Orono, a Minnesota mu icipal corporation and said instrument was executed on behalf of the City. �� RACHEL DODGE �; NOTARY PUBLIC-MINNESOTA �,��,�/ ��'�� .,,,..� My Commission Expires Jan.31,2010 � , Notary Public STATE OF MINNESOTA COUNTY OF HENNEPIN � This instrument was acknowledged before me this �i day of f�L�r;�c�� , 2007, by Bruce G. Paddock, single. �t;"�:�'a� CARL W.HORSCH,JR. f � ' �e�' �� Notary Public � 1 � � � �f � �i �•� �= Minnesota � �� f�-.. ' J f Y � '�My Commission Expires January 31,2010 � �U�, �� y V' +� �(, � `�._� " ir� Notary Public Page 7 of 7 �� Initials of Developer Initials of City Clerk� �i��n k� Five Star Service Guaranteed��* tx U.S. Bank National Association International Banking Division, BC-MN-H2OG 800 Nicoliet Mall TELEX: 192179 USB INTL MPS Minneapolis, Minnesota 55402 S.W.I.F.T.: USBKUS44 866-359-2503 x 5854 Fax: 612 303-5226 612-303-7395 August 14, 2007 City of Orono ("City") Orono City Hail 2750 Kelley Parkway P.O. Box 66 Crystal Bay, Minnesota 55323 We hereby issue, for the account of Bruce G. Paddock, 3940 Quebec Avenue North, Minneapolis, Minnesota 55427 and in your favor, our Irrevocable Letter of Credit Number SLCMMSP004747 in the amount Two Hundred Forty Eight, Eight Hundred Seventy Three no/100 U.S. Dollars ($248,873.00), 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. SLCMMSP04747 dated August 14, 2007 of U.S. Bank National Association"; b) Be accompanied by a Beneficiary's signed statement, purportedly signed by the Mayor or City Manager of the City of Orono stating: "Bruce G. Paddock is in default of the Development Contract with the City of Orono and that five (5) business prior written notice has been given by the City to the developer with respect to the existence of such default, and such defauit has not been cured." c) Be presented for payment at U.S. Bank National Association, Attn: Standby Letters of Credit BC-MN- H2OG, 800 Nicollet Mail, Minneapolis, Minnesota 55402 on or before 4:00 p.m. on August 8, 2008. 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, the Bank delivers written notice to the Orono City Administrator that it intends to modify the terms of, or cancel, this Letter of Credit. Written notice is effective if sent by courier at least forty-five (45) days prior to the next annual renewal date addressed as follows: Orono City Administrator, Orono City Hall, 2750 Kelley Parkway, P.O. Box 66, Crystal Bay, Minnesota 55323. 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 laws of the State of Minnesota and by the most recent revision of the Uniform Customs and Practice for pocumentary 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. U.S. Bank National Association �C�vh,f,� jy� � Authorized Signature ��a�n kw Five Star Service Guaranteed�`* . ,r. U.S. Bank National Association SWIFT: USBKUS44 Standby Letters of Credit: BC-MN-H2OG TELEX: 192179 USB INTL MPS 800 Nicollet Mall PHONE: 866-359-2503 EXT 5854 Minneapolis, Minnesota 55402 612 303-7395 FAX : 612-303-5226 LETTER OF CREDIT NUMBER: SLCMMSP04747 DOLLAR AMOUNT: USD 248,873.00 EXPIRATION DATE: AUGUST 8, 2008 APPLICANT: BRUCE G. PADDOCK 3940 QUEBEC AVENUE NORTH MINNEAPOLIS, MINNESOTA 55427 BENEFICIARY: CITY OF ORONO ("CITY") ORONO CITY HALL 2750 KELLEY PARKWAY P.O. BOX 66 CRYSTAL BAY, MINNESOTA 55323 U.S. BANK NATIONAL ASSOCIATION \l�G�/li1't,C/ , AUTHORIZED SIGNATURE ORIGINAL LETTER OF CREDIT SENT TO: CITY OF ORONO 2750 KELLEY PARKWAY ORONO, MN 55356-9387 i:\ibd\standby\letter\4747ccy.doc