HomeMy WebLinkAboutDevelopment Contract - Honey HillExisting Certs
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LAND TYPE Torrens (T)
DOC NUM 6103372
Certified, filed and/or recorded on
Oct 30, 2024 2:00 PM
Office of the Registrar of Titles
Hennepin County, Minnesota
Amber Bougie, Registrar of Titles
Daniel Rogan, County Auditor and Treasurer
Deputy 120 Pkg ID 2724095C
Document Recording Fee $46.00
Document Total $46.00
This cover sheet is now a permanent part of the recorded document.
LAND TYPE Abstract (A)
DOC NUM 11324438
Certified, filed and/or recorded on
Oct 30, 2024 2:00 PM
Office of the County Recorder
Hennepin County, Minnesota
Amber Bougie, County Recorder
Daniel Rogan, County Auditor and Treasurer
Deputy 120 Pkg ID 2724095C
Document Recording Fee $46.00
Document Total $46.00
This cover sheet is now a permanent part of the recorded document.
(reserved for recording information)
DEVELOPMENT CONTRACT
(Developer Installed httprovetnents)
HONEYHILL ONLAKE CLASSEN
Project No. LA24-000042
This DEVELOPMENT CONTRACT ("Contract") dated 00t �g 2024, is by
and between the CITY OF ORONO, a Minnesota municipal corporation ("City"), and ASPECT
DESIGN BUILD, L.L.C., a Minnesota limited liability company ("Developer")
1. Request for Plat Approval. Developer has asked the City to approve the plat for Honey
Hill on Lake Classen (the "Plat"). The land to subdivided by the Plat (the "Land") contains 17.25 acres
and will be developed into six (6) buildable lots and one (1) private road outlot. The Land is situated in
the City of Orono, County of Hennepin, State of Minnesota, and includes the following parcels, which are
legally described as set forth on Exhibit A (collectively, the "Subject Property"):
A. 3465 6th Avenue North (PID 29-118-23-43-0011);
B. 3515 6th Avenue North (PID 29-118-23-43-0002);
C. Lot 2, Block 1, Craddock Ledstrom Estates (PID 29-118-23-44-0004);
D. Outlot C, Craddock Ledstrom Estates (PID 29-118-23-44-0006); and
E. That Part of Craddock Ledstrom Estates, Outlot A embraced within the Plat of Rocky Knoll
(PID 29-118-23-43-0013).
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, * �V
cH8 Title, LLC
1 10850 Old County Road 15, Suite 10b
Plymouth, MN 55441
Following Final Plat, the Subject Property will be legally described as:
Lots 1 through 6, Block 1, Honey Hill on Lake Classen, Hennepin County, Minnesota, according
to the recorded plat thereof; and
Outlot A, Honey Hill on Lake Classen, Hennepin County, Minnesota, according to the recorded
plat thereof.
2. Conditions of Plat Approval. The Plat shall adhere to the purpose and intent of the Orono
Community Management Plan, as amended. The City hereby approves the Plat on condition that Developer
enter into this Contract and furnish the security required by it. The City will cause the Plat to be duly
recorded in the Office of the Hennepin County Registrar of Titles and in the Office of the Hennepin County
Recorder, promptly after compliance by Developer with all conditions precedent to such recording pursuant
to this Contract, which conditions precedent Developer shall cause to be satisfied within 180 days after the
City Council approves the final Plat.
3. Right to Proceed. Within the Land, Developer may not grade or otherwise disturb the earth,
construct streets, utilities, public or private improvements, or any buildings until the following conditions
have been satisfied: 1) this Contract has been fully executed by both parties and filed with the City Clerk;
2) the necessary Security, as defined in Section 26 of this Contract, has been received by the City; and 3)
the Plat has been duly recorded in the Office of the Hennepin County Registrar of Titles and the Office of
the Hennepin County Recorder.
4. Phased Development. The Plat is not part of a phased development.
5. Preliminary Plat Status. The Preliminary Plat was approved by the Orono City Council
on July 8, 2024, subject to the Findings of Fact and conditions of approval set forth in Resolution No.
7490.
6. Changes in Official Controls. For two (2) years from the date of this Contract, no
amendment to the City's Comprehensive Plan or official controls shall apply to or affect the use,
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development density, lot size, lot layout, or dedications of the Land unless required by state or federal law
or agreed to in writing by the City and 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 with respect to property which did not receive final plat approval prior to any such
amendment.
7. Development Plans. The Plat shall be developed in accordance with the following plans
(collectively, the "Plans"). The Plans shall not be attached to this Contract but shall remain on file with the
City at least so long as any of the Property remains subject to the terms of this Contract. The erosion control
plan may also be approved by Minnehaha Creek Watershed District (MCWD). If the Plans vary from the
terms of this Contract, the terms of this Contract shall control. The Plans are:
Plan A — Plat of Honey Hill on Lake Classen
Plan B — Master Grading Plan (10/16/2024)
Plan C — Utility Plan (10/16/2024)
Plan D — Erosion Control & Restoration Plan (10/16/2024)
Plan E — Landscape Plan (05/20/2024)
Plan F — Development Sign (06/30/2024)
Plan G — Tree Preservation Plan (07/01/2024)
Plan H — Wetland Buffer Planting Plan (07/19/2024)
8. Improvements. Developer shall install and pay for the following as required to be built in
accordance with the approved Plans (the "Improvements"):
A. Site Grading, Ponding, and Erosion Control
B. Setting of Iron Monuments
C. Surveying and Staking
D. Traffic Control Signs, Street Signs, and Development Identification Signs
E. Underground Utilities
F. Stormwater Management Facilities
G. Landscaping
H. Shared Private Road
The Improvements shall be installed in accordance with the Plans; the City subdivision ordinance; City
standard specifications for utilities and street construction; and any other ordinances including those
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concerning erosion and drainage and any prohibiting grading, construction activity, and the use of power
equipment. Developer shall submit to the City plans and specifications that have been prepared by a
competent professional engineer licensed in the State of Minnesota, for approval by the City Engineer.
Developer shall instruct its engineer to provide adequate field inspection personnel to assure an acceptable
level of quality control. In addition, the City may, at the City's discretion and at Developer's expense,
have one or more City inspectors and a soil engineer inspect the work as the City may reasonably
determine. Developer, its contractors and subcontractors, shall follow all instructions received from the
City's inspectors. Developer's engineer shall provide for on -site project management. Developer's
engineer is responsible for design changes and contract administration between Developer and
Developer's contractor. Developer or its engineer shall schedule a pre -construction 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. Within thirty (30) days after the completion of the Improvements
and before the Security is released, Developer shall supply the City with a complete set of reproducible
"as constructed" Plans, and an electronic file of the "as constructed" Plans in an auto CAD file based upon
the Hennepin County coordinate system, all prepared in accordance with City standards.
9. Iron Monuments. In accordance with Minnesota Statutes Section 505.02 and the Orono
City Code, the final placement of iron monuments for all lot corners must be completed before the Security
is released. Developer's surveyor shall submit a written notice to the City certifying that the monuments
have been installed.
10. Permits. Related to the Project and Improvements, Developer shall obtain, or require its
contractors and subcontractors to obtain, all necessary permits, including but not limited to the following,
to the extent required:
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A. MnDNR for Dewatering
B. Hennepin County for Road Access and Work in County Rights -of -Way (Permit # 2024-
A108, UID# 87601)
C. City of Orono for Building Permits
D. MCWD for wetland mitigation, erosion control, and stormwater management permits (24-
310)
E. NPDES Permit (National Pollutant Discharge Elimination System) from MPCA
(C00070554)
11. Dewaterinz. Due to the variable nature of groundwater levels and stormwater flows,
Developer and Developer's contractors and subcontractors shall be responsible for satisfying themselves
with regard to the elevation of groundwater in the area and the level of effort needed to perform dewatering
and storm flow routing operations. All dewatering shall be in accordance with all applicable county, state,
and federal rules and regulations. DNR regulations regarding appropriations permits shall also be strictly
followed.
12. Time of Performance. The Developer shall install all Improvements as contemplated by
Section 8 of this Contract and the approved Plans by November 30, 2025. The final wear course on streets
shall be installed no later than September 15th the first summer after the base layer of asphalt has been in
place for one freeze -thaw cycle. The Developer may, however, request an extension of time from the City.
If an extension is granted, it shall be conditioned upon updating the "security" to reflect cost increases and
the extended completion date. Final wear course placement must have the written approval of the City
Engineer and may be delayed or scheduled at any time of the year based upon existing site conditions at the
discretion of the City Engineer.
13. License. Developer hereby grants the City, its agents, employees, officers and contractors
a license to enter the Land to perform all work and inspections deemed appropriate by the City in conjunction
with development of the Land.
14. Erosion Control. Prior to initiating site grading, all required erosion controls according to
Plan D — Erosion Control & Restoration Plan including any required revisions and recommendations by
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the City Engineer shall be implemented by Developer, and inspected and approved by the City. Developer
must adhere to Best Management Practices for Protecting Water Quality in Urban Areas and to the approved
SWPPP. The City may impose additional erosion control requirements if reasonably required. All areas
disturbed by excavation and backfilling operations shall be reseeded within five (5) days after the completion
of the work, weather permitting, or in an area that is inactive for more than ten (10) days unless authorized
and approved by the City Engineer. Except as otherwise provided in the erosion control plan, seed shall be
in accordance with the City's current seeding specification which may include certified oat seed to provide
a temporary ground cover as rapidly as possible. All seeded areas shall be fertilized, mulched, and disc
anchored as necessary for seed retention. The parties recognize that time is of the essence in controlling
erosion. If Developer does not comply with the erosion control plan and schedule or supplementary
instructions received from the City, the City may take such action as it deems appropriate to control erosion.
The City will endeavor to notify Developer in advance of any proposed action, but failure of the City to do
so will not affect Developer's and City's rights or obligations under this Contract. If the City takes action
to control erosion, Developer shall reimburse the City for the actual cost of such City action. If Developer
does not reimburse the City for any cost the City incurred for such work within ten (10) days as invoiced by
the City, the City may draw down the Security to pay any such costs. No development, utility, or street
construction will be allowed and no building permits will be issued unless the Land is in full compliance
with the approved erosion control plan.
15. Grading Plan. The Land shall be graded in accordance with the approved Plan B — Master
Grading Plan and Plan D — Erosion Control & Restoration Plan. The plan shall conform to City of Orono
specifications. Within thirty (30) days after completion of the grading and before the City approves
individual building permits for the lots, Developer shall provide the City with an "as constructed" grading
plan certified by a registered land surveyor or engineer that all improvements have been completed according
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to the approved plan. Notwithstanding the foregoing, the City may issue building permits to Developer,
prior to completion of all grading, provided the City Engineer has determined that adequate erosion control
measures are in place. The "as constructed" plan shall include field -verified elevations of the following: a)
cross sections of stormwater ponds; b) location and elevations along all swales, wetlands, wetland mitigation
areas if any, and ditches, and the locations and dimensions of borrow areas/stockpiles; and c) lot corner
elevations. The City will withhold issuance of building permits until the approved certified grading plan is
on file with the City and all erosion control measures are in place as determined by the City Engineer.
Developer certifies to the City that all lots with house footings placed on fill will have been monitored and
constructed to meet or exceed FHA/HUD 79G specifications.
16. Clean Up. Developer shall clean dirt and debris from streets that has resulted from
construction work by Developer, builders, subcontractors, their agents or assigns. Prior to any construction
on the Land, Developer shall identify in writing a responsible party and schedule for erosion control, street
cleaning, and street sweeping.
17. Homeowners' Association and Declaration.
A. Establishment of HOA. Developer shall establish a homeowners' association (the
"Association") as a nonprofit corporation pursuant to Minnesota Statutes, Chapter 317A, and any other
applicable law, and Developer shall enter into, execute, and cause to be duly filed in the Office of the
Minnesota Secretary of State such Articles of Incorporation for the same. Developer shall also execute a
Declaration of Covenants, Conditions, and Restrictions for Honey Hill on Lake Classen, to serve as
the governing documents for the Association (the "Association Declaration"), which shall be filed of
record in the Office of the Hennepin County Registrar of Titles and in the Office of the Hennepin County
Recorder. As a condition for the City to release the Plat for recording, Developer shall provide a copy of
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the Association Declaration to the City for City review and approval. Developer shall also provide a copy
of the recorded Association Declaration to the City.
B. Association Declaration. The Association Declaration shall:
i. Provide that the Association shall be responsible for the maintenance of the Shared Private
Road (as that term is defined in Section 18.C. of this Contract), including the limited right of the public
onto the Shared Private Road for the purpose of providing public services, as well as the right of the City
to perform maintenance on the Shared Private Road in the event Developer, or Developer's successors or
assigns, fail to do so, and to be reimbursed for the City's cost of such maintenance;
ii. Provide that the Association shall be responsible for the maintenance of the stormwater
ponds, and stormwater management facilities within the Land,
iii. Establish regulations for vehicle parking and storage that are consistent with the applicable
sections of the Orono City Code;
iv. Provide for the protection of the private septic system management facilities on the
Property, and the maintenance and protection of such facilities as directed by the City; and
V. Include ownership and perpetual maintenance responsibilities of the Association for any
proposed permanent subdivision identification monument signage to be installed within the Land.
18. Construction and Maintenance of Improvements: Shared Private Road Construction
and Maintenance.
A. Construction and Maintenance of Improvements. Developer shall construct the
Improvements as enumerated in Section 8 of this Contract. Upon completion of the Improvements, the
City shall inspect the Improvements and notify Developer if any of the Improvements do not conform to the
requirements of this Contract. At the request of Developer, upon expiration of all warranties and completion
of the Improvements in conformance to the requirements of the Contract, as determined by the City, the City
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will execute a recordable certificate of completion confirming such completion and release of the Land from
provisions of this Contract relating to such Improvements.
B. Shared Private Road Construction and Maintenance. Vehicular access to the Lots shall
be individual driveways onto the Private Shared Road to provide access to 01' Avenue North (CSAH 6)
(the "Shared Private Road"), with final driveway locations subject to City Engineer approval at the time
of building permit issuance. The Shared Private Road shall be constructed according to the standard road,
drainage, and utility easements as required by Orono City Code. Developer shall implement and adhere
to the Hennepin County permit 2024-A108, UID# 87601 for access from CSAH 6, dated 08/21/2024.
19. City Engineering Administration and Construction Observation. Developer shall pay
all fees and costs incurred by the City in connection with the development of the Land as such fees and
costs are incurred. The City shall invoice Developer monthly for accrued fees and costs, and Developer
shall pay such invoices within thirty (30) days of receipt of the same. Contemporaneously with the
execution of this Contract, Developer shall deposit a cash escrow with the City in the amount of
$10,000.00 ("Escrow Account"). All accrued interest, if any, shall be paid to the City to reimburse the
City for its cost in administering the Escrow Account. The purpose of the Escrow Account is to guarantee
reimbursement to the City for all out-of-pocket costs that the City has incurred or will incur related to the
development of the Land, including, but not limited to, engineering fees and construction observation,
legal fees, planning fees, administrative expenses, and other costs related to the development of the Land,
including costs to ensure that the work is completed in accordance with the Erosion Control & Restoration
Plan (Plan D), the MCWD Permit 24-310, NPDES Permit #C00070554 and the provisions of Orono City
Code Chapter 79. City engineering administration will include monitoring of construction observation,
consultation with Developer and its engineer on the status or problems regarding the project, coordination
for final inspection and acceptance, and, if any, project monitoring during the warranty period, as such is
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defined in Section 28 of this Contract. Fees for these services shall be at standard monthly rates, and shall
be billed monthly. Developer shall remit payment for all costs and fees within thirty (30) days of receipt
of a billing invoice from the City. All fees and costs incurred by the City in connection with the
development of the Land shall be charged against the Escrow Account, which shall remain in effect until
the development of the Land is complete. Any funds remaining in the Escrow Account after the
completion of the development of the Land shall be refunded to Developer. In the event that the Escrow
Account is depleted to $1,000.00, upon request from the City, Developer shall deposit additional funds to
replenish the Escrow Account to its original balance to cover projected City costs as determined by the
City. Developer agrees that the Escrow Account shall always have a balance of no less than $1,000.00.
Developer shall be entitled, upon request to the City, to an itemized statement of costs and fees charged
against the Escrow Account.
20. Claims. In the event that the City receives claims from laborers, material suppliers, or
others that perform work required by this Contract and has been performed, the sums due them have not
been paid, and the laborers, material suppliers, or others are seeking payment from the City, Developer
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 Security in an amount up to 125 percent of the claim(s)
and deposit the funds in compliance with the Rule, and upon such deposit, Developer shall release,
discharge, and dismiss the City from any further proceedings as it pertains to the funds deposited with the
District Court, except that the Court shall retain jurisdiction to determine attorneys' fees pursuant to this
Contract.
21. Storm Water and Drainage Trunk Fee. The Plat is subject to a Storm Water and
Drainage Trunk Fee of $24,180.00.
22. Park Dedication Fee. The Plat is subject to a Park Dedication Fee of $22,481.74.
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23. Final Plat Fee. The Plat is subject to a Final Plat fee of $550.00, based on the 2024 Orono
Fee Schedule.
24. Landscaping/Septic Protection. All landscaping shall be installed in accordance with the
approved landscape plan. Any amendments to or deviations from the approved landscape plan must be
approved by the Community Development Director. The construction limits shall be clearly marked with
adequate fencing and signage around trees and vegetation outside of the construction area.
Land:
25. Special Provisions. The following special provisions shall apply to the development of the
A. Implementation of and adherence to the findings and conditions listed in Resolution No.
7490 Approving a Preliminary Plat for Honey Hill on Lake Classen (File No. LA24-000030) dated July 8,
2024, and in Resolution No. -161 M Approving a Final Plat for Honey Hill on Lake Classen (File No. LA
24-000042) dated OGj'D%Y17(2
2024.
B. Implementation of and adherence to the City Engineer's comments, conditions, and
recommendations dated June 19, 2024, and any updated City Engineer requirements.
C. Developer shall execute the Association Declaration as set forth in Section 17 of this
Contract, and record the same in the Office of the Hennepin County Registrar of Titles and in the Office of
the Hennepin County Recorder.
D. Developer shall execute a Stormwater Utility Maintenance Agreement, in a form provided
by the City, and record the same in the Office of the Hennepin County Registrar of Titles and in the Office
of the Hennepin County Recorder.
E. Final Plat approval is subject to Minnehaha Creek Watershed District ("MCWD") approval
and permits as required. The City will not release the Plat for recording until the MCWD has approved
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the stormwater management plans and Developer has provided evidence that all required MCVWD permits
have been obtained.
F. Final Plat approval is subject to suitable documentation for two (2) septic sites for each
Parcel, Lots 1-6. The septic sites must be clearly marked with adequate fencing to prevent damage or
disturbance to the sites.
G. Developer must obtain a permit from the City Building Official prior to installation of any
temporary or permanent subdivision identification signs or monuments for the Land. Such signs shall
comply with setback requirements and shall be located outside the sight visibility triangle in compliance
with City sign ordinance. Developer shall submit a $1,000.00 per sign security guaranteeing removal of
any temporary sign when the subdivision is fully developed.
H. Prior to City Council approval of the Final Plat, Developer shall furnish a boundary survey
of the Land with all property corner monumentation of the Land in place and marked with lath and a flag.
Any encroachments on or adjacent to the Land shall be noted on the survey. The certificate of survey must
also include a certification that all irons for a specific lot have either been found or set prior to the issuance
of a building permit for that lot.
I. Developer shall submit the Final Plat in electronic format. The Plat shall be created using
Hennepin County Coordinates. The electronic format shall be Auto CAD file. The Developer shall also
submit two complete sets of the Plat on Mylar (one copy for the City's records and one copy for recording
with Hennepin County). Developer shall also provide one copy printed to fit on 11"x17" Mylar.
26. Summary of Security Requirements. To guarantee compliance with the terms of this
Contract, payment of the costs of all Improvements and construction of all Improvements, Developer shall
furnish the City with a letter of credit, in the form attached hereto as Exhibit C (the "Security"), from a
bank, approved by the City Administrator, for 125% of the cost of the Improvements, including any
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required landscaping. The amount of the Security shall be $379.934.10. The amount of the Security
includes all of the security requirements set forth in this Contract, and was calculated as follows:
CONSTRUCTION COSTS:
Erosion Control and site stabilization
$
20 177.50
Improvements
$
281,269.80
Lot Corners/Iron Monuments
$
2,500.00
Total Costs
$
303,947.30
Total Security Total Costs x 125%
$
379,934.10
The bank shall be authorized to do business in the State of Minnesota, and shall provide a Minnesota
office for presentment of the Letter of Credit or other alternative acceptable to the City. The Security shall
extend through completion and acceptance (including the expected warranty period) by the City of the
Development Work. The City may draw down the Security, upon five (5) business days' prior written
notice to Developer, for any violation of the terms of this Contract. Amounts drawn shall not exceed the
amounts necessary to cure the default. If the 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
proceeds shall be used to cure the default. Upon receipt of proof satisfactory to the City that work has
been completed and financial obligations to the City have been satisfied, with City approval the Security
may be reduced from time to time by ninety percent (90%) of the financial obligations that have been
satisfied. Ten percent (10%) of the amounts certified by Developer's engineer, and approved by City's
Engineer, shall be retained as Security until all Improvements have been completed, all financial
obligations to the City satisfied, the required "as constructed" Plans have been received by the City, a
warranty security is provided, and the public Improvements are accepted by the City Council. The City
standard specifications for utilities and street construction outline procedures for Security reductions.
27. Summary of Cash Requirements. The following is a summary of the cash requirements
and fees due under this Contract, which must be paid in cash at the time of Final Plat approval:
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Storm Water and Drainage Trunk Fee
$24 180.00
Park Dedication Fee
$22,481.74
City Engineering Administration & Construction Observation Escrow
$10 000.00*
Final Plat Fee
$550.00
Total:
$57,211.74
*inn —Win r»al plat application 2SCYRWi
28. Warranty. Developer warrants all Improvements against poor material and faulty
workmanship. The warranty period for streets is one (1) year. The one-year warranty period on streets shall
commence after the final wear course has been installed and accepted by the City Council as documented in
official City minutes. The City standard specifications for utilities and street construction identify the
procedures for final acceptance of streets and utilities.
29. Responsibility for Costs.
A. Except as otherwise specified in this Contract, Developer shall pay all costs incurred by it or
the City in conjunction with the development of the Land, including but not limited to Minnehaha Creek
Watershed District charges, legal, planning, engineering and inspection expenses incurred in connection
with approval and acceptance of the Plat, the preparation of this Contract, review of construction plans and
documents, and all costs and expenses incurred by the City in monitoring and inspecting development of the
Land.
B. Developer shall hold the City and its officers, employees, and agents harmless from claims
made by itself and third parties for damages sustained or costs incurred resulting from Plat approval and
development of the Land. Developer shall defend and indemnify the City and its officers, employees, and
agents against any claims arising out of or related to the Plat, including all approvals and permits issued as
a result of the Plat, and 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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C. Developer shall reimburse the City for reasonable costs incurred in the enforcement of this
Contract, including engineering and attorneys' fees.
D. Developer shall pay, or cause to be paid when due, and in any event before any penalty is
attached, all special assessments referred to in this Contract. This is an obligation of Developer and shall
continue in full force and effect even if Developer sells one or more lots, the Land, or any part of it.
E. 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
development and construction of the Project until the bills are paid in full. Bills not paid within thirty (30)
days shall accrue interest at the rate of eight percent (8%) per year.
F. In addition to the charges and special assessments referred to herein, other charges as
required by the City ordinance or via other agencies for which the City acts as agent may be imposed such
as, but not limited to, connection charges and building permit fees.
30. Developer's Default. In the event of default by Developer as to any of the work to be
performed by it under this Contract, the City may, at its option, perform the work and Developer shall
promptly reimburse the City for any expense incurred by the City, provided Developer, except in an
emergency as determined by the City, is first given notice of the work in default, not less than forty-eight
(48) hours 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 against any portion of the Land owned by
Developer or any successor in interest to Developer.
31, Miscellaneous.
A. Developer represents to the City that the Plat complies with all city, county, state, and federal
laws and regulations, including but not limited to: subdivision ordinances, zoning ordinances, and
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environmental regulations. If the City determines that the Plat does not comply, the City may, at its option,
refuse to allow construction or development work on the Project until Developer does comply. Upon the
City's demand, Developer shall cease work until there is compliance.
B. Third parties shall have no recourse against the City or Developer under this Contract.
C. Breach of the terms of this Contract by Developer shall be grounds for denial of building
permits, including those for lots sold to third parties.
D. 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 portions of this
Contract.
E. Grading and one lift of asphalt shall be installed on the private street prior to issuance of any
building permits for homes accessing via said street.
F. If building permits are issued prior to the completion of all Improvements, Developer
assumes all liability and costs resulting in delays in completion of Improvements and damage to
Improvements caused by the City, Developer, its contractors, subcontractors, material suppliers, employees,
agents, or third parties.
G. In addition to the charges referred to in this Contract, other charges may be imposed such
as, but not limited to, building permit fees.
H. The action or inaction of the City shall not constitute a waiver or amendment to the provisions
of this Contract, including the Plans. Except as provided in Section 24 of this Contract, to be binding,
amendments or waivers to the provisions of this Contract shall be in writing, signed by the parries 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.
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I. This Contract shall run with the Land and may be recorded against the Land. Developer
covenants with the City, its successors and assigns, that Developer is well seized in fee title of the Land
and/or has obtained consents to this Contract, in the form attached hereto, from all parties who have an
interest in the Land; that there are no unrecorded interests in the Land; and that Developer will indemnify
and hold the City harmless for any breach of the foregoing covenants.
I Each right, power or remedy herein conferred upon the City is cumulative and in addition to
every other right, power or remedy, express or implied, now or hereafter arising, available to the 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. Developer may not assign this Contract without the written permission of the City Council.
Developer's obligations hereunder shall continue in full force and effect even if Developer sells one or
more lots in the Plat, the Land, or any part of it. Upon request, the City shall provide, in recordable form,
a release of any lot in the Plat from this Development Contract if the City determines that the terms and
conditions of this Contract have been satisfied.
L. Developer shall be responsible for all snow removal from vacant lots to the extent that City
Ordinance requires snow removal. Developer shall be responsible for ensuring that all vacant lots comply
with the City's Code regarding nuisances.
M. Should Developer convey any lot or lots in the Plat to a third party, the City and the owner
of that lot or those lots may amend this Development Contract or other city approvals or agreements for
development or use of those lots without the approval or consent of Developer or other lot owners in the
Plat. Private agreements between the owners of lots within the Plat for shared service or access and related
17
232402v15
matters necessary for the efficient use of the Land shall be the responsibility of the lot owners and shall
not bind or restrict City authority to approve applications from any lot owner in the Plat.
32. Notices. Required notices to Developer shall be in writing, and shall be either hand delivered
to Developer, its employees or agents, or mailed to Developer by certified mail at the following address:
Aspect Design Build, L.L.C., ATTN: _TOM , 422 Second Street, Excelsior, MN 55331. Notices to
the City shall be in writing and shall be either hand delivered to the City Administrator, or mailed to the City
by certified mail in care of the City Administrator at the following address: Orono City Hall, 2750 Kelley
Parkway, Orono, Minnesota 55356. Either party may change the address to which notices to such parry
thereafter shall be given, by providing to the other parry notice of such change.
33. Partial Release of Contract. At the request of Developer, upon expiration of warranties,
completion and satisfaction of requirements of the Contract, as determined by the City, the City will execute
a recordable certificate of completion confirming such completion and release of the Land from provisions
of this Contract as applicable. Developer may request partial release of the Contract. The City, when
Developer requests such a release, may require as a condition thereof that Developer memorialize any
remaining unsatisfied obligations hereunder pursuant to a recorded declaration or an amendment to a
previously recorded declaration.
34. Incorporation of Exhibits. The Exhibits attached to this Contract are true and correct, and
are incorporated into and made part of this Contract.
[Signature pages follow]
18
23240205
CITY:
CITY OF ORONO
By:
Dennis Walsh, or
(SEAL)
By
•
Adam Edwards, City Administrator
STATE OF MINNESOTA )
ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this 2�;7 day of 0 ,
2024, by Dennis Walsh and by Adam Edwards, respectively, the Mayor and City Administrator of the
City of Orono, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the
authority granted by its City Council.
Is
CHRISTINE S. LUSIANNotary PublicState of MinnesotaMy Commission ExpiresJanuary 31, 2027
19
232402v15
DEVELOPER:
ASPECT DESIGN BUILD, L.L.C.,
a Minnesota limited liability company
-------------
By
Its: V 1 CC_ 17GL C ri[printed titlel
STATE OF /"! 1011e5o4A, )
ss.
COUNTY OF r710 )
The foregoing instrument was acknowledged before me this ail day of , 2024,
bylhona,S Pfei rioted name , the via (10 C�� rioted title of Aspect Design Build,
L.L.C., a Minnesota imited liability company, on ehalf of the limited liability company.
N tary Pu is
NOLA J DICKHAUSEN
k' !
NOTARY PUBLIC
MINNESOTA
My Commission Expires Jan. 31, 2027
DRAFTED BY:
CAMPBrmL KNUTSON
Professional Association
Grand Oak Office Center I
860 Blue Gentian Road, Suite 290
Eagan, MN 55121
Telephone: (651) 452-5000
SMM/AKLS
20
232402v15
MORTGAGE CONSENT
TO
DEVELOPMENT CONTRACT
Tradition Capital Bank, 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 I _S day of Oc+ b be f , 2024.
Tradition Capital Bank
By:
Lorri Borgelt
Its: EVP
STATE OF MINNESOTA )
) SS.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this 15 day of Q C4 G 6 e C , 2024,
by Lorri Borgelt, the EVP of Tradition Capital Bank, a Minnesota Banking Corporation, on its behalf.
State of Minnesota
Notary Public
John P Borawski
My Commission Expires 1/3112029
DRAFTED BY:
Tom PREISSING, VP
ASPECT DESIGN BUILD
422 SECOND ST
EXCELSIOR, NIN 55331
612-300-0025
otary Public
232402v6
21
Exhibit A
Legal Description of the Subject Property
Parcel 1:
Lot 2, Block 1, and Outlot C, Craddock Ledstrom Estates, Hennepin County, Minnesota;
And
That part of the West Half of the Southeast Quarter of Section 29, Township 118 North, Range 23 West
of the 5th Principal Meridian, Hennepin County, Minnesota, lying South of the South line of Lot 3,
Block 1, Craddock Ledstrom Estates, East of the West line of said Lot 3, Block 1, Craddock Ledstrom
Estates, extended Southerly, and West of the East line of said Lot 3, Block 1, Craddock Ledstrom
Estates, extended Southerly, Hennepin County, Minnesota.
Abstract Property
And
Parcel 2:
Lot 3, Block 1;
That part of Outlot A, embraced within the plat of Rocky Knoll, Craddock Ledstrom Estates,
Hennepin County, Minnesota.
Torrens Certificate No. 1579133
Torrens property.
Parcel 3 (Easement):
The West 20 rods of that part of the West 1/2 of the Southeast 1/4 of Section 29, Township 118
North, Range 23, West of the Fifth Principal Meridian, Hennepin County, Minnesota, described as
follows: Commencing at a point 29 rods East of center of said Section 29, Township 118, Range 23;
thence at right angles South 160 rods to Section line; thence at right angles East 40 rods; thence at right
angles North 160 rods to East and West line through center of said section; thence at right angles West
40 rods to point of beginning lying Southerly of the center line of County Road. EXCEPT, Parcels 98A
and Parcel 99 on Minnesota Department of Transportation Right of Way Plat Numbered 27-162.
Abstract Property
22
232402v15
EXHIBIT C
IRREVOCABLE LETTER Or CREDIT
No.
Date:
TO: City of Orono
2750 Kelley Parkway
Orono, Minnesota 55356
Dear Sir or Madam:
We hereby issue, for the account of and in your favor, our Irrevocable Letter
of Credit in the amount of S , 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 , 2027, of
(Name of Bank) ',
b) Be accompanied by an affidavit signed by the Mayor or City Administrator of the City of Orono certifying that
is in default of the Development Contract with the City of Orono and that five (5)
business days prior written notice has been given by the City to Developer with respect to the existence of such default, and such
default has not been cured.
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 Orono City
Administrator 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: Orono City Administrator, Orono City Hall, 2750 Kelley Parkway, Orono, Minnesota 55356, and is actually received
by the City Administrator 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. This agreement shall he construed and interpreted under
Minnesota Law.
We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored upon
presentation.
BY:
Its
23
232402vt4
CERTIFICATE OF INSURANCE
LIABILITY & WORKERS' COMPENSATION
This certificate is issued as a matter of information only and confers no rights upon the certificate holder. This certificate
does not amend, extend or alter the coverage afforded by the policies listed below.
PROJECT: T O ylsl Q1 O✓1
CERTIFICATE HOLDER & ADDITIONAL INSURED: City of Orono
ADDRESS:
ARCII/ENGR:
INSURED: Aspect Design Build
AGENT:
Brandon Perkins
ADDRESS: 422 2nd St
Excelsior, MN 55331
ADDRESS: 9855 W 78th St #100
Eden Prairie, MN 55344
WORKERS' COMPENSATION COVERAGE
POLICY # EFFECTIVE DATE / / EXPIRATION DATE / /
INSURANCE COMPANY:
COVERAGE -Workers' Compensation, Statutory. Employer' Liability Limit
$ Each Accident $ Disease Policy Limit $ Disease Employee Limit
($500,000 Policy limit applies to both accident and disease)
GENERAL LIABILITY
EPP 0488723 05 19 24 0519 25
POLICY # EFFECTIVE DATE / / EXPIRATION DATE / /
INSURANC.T COMPANY: Cincinnati Insurance Company
( )Claims Made ()5Occurrence ( )Owners & Contractors Protective O Other
LIMITS:
General Aggregate Limit (Other Than Products -Completed Operations) $
Products -Completed Operations Aggregate Limit $
Personal & Advertising Injury Limit $
Each Occurrence $
24
232402v6
2,000,000
2,000,000
1,000,000
1,000,000
COVERAGE PROVIDED
Operations of Contractor:
Operations of Sub -Contractor (Contingent):
Does Personal Injury Include
Claims Related to Employment:
Completed Operations/T'roducts:
Contractual Liability (Broad Form):
EXCEPTIONS:
Yes X No Government Immunity is Waived
Yes No X- Property Damage Liability Includes
Damage Due to Blasting
Yes No X Damage Due to Collapse
Yes-K- No Damage To Underground Facilities
Yes _ Now Broad Form Property Damage
Yes No X
Yes NoX
Yes NoX—
Yes-X—No
Yes X No
AUTOMOBILE LIABILITY
POLICY # EPP 0488723 EFFECTIVE DATE: 05 / 19V 24 EXPIRATION DATE: 05/ 19/ 25
INSURANCE COMPANY: Cincinnati Insurance Company
( )Any Auto ( )All Owned Autos ( )Scheduled Autos
(Hired Autos (melon -Owned Autos
LIMITS: 1,000,000
Bodily Injury $ Each Person / $ Each Occurrence OR Combined Sing le Limit $
Property Damage $ Each Occurrence
UMBRELLA EXCESS LIABILITY
POLICY # EPP0488723 EFFECTIVE DATE:05 / 19 / 24 EXPIRATION DATE: 05 / 19 / 25
INSURANCE COMPANY Cincinnati Insurance Company
LIMITS: Single Limit Bodily Injury and Property Damage
$ 1,000,000 Each Occurrence $ 1,000,000 Aggregate
COVERAGE PROVIDED:
Applies in excess of the coverages listed above for Employers' Liability, General Liability, and Automobile Liability:
Yes No X General Liability and Auto Liability
Are any deductibles applicable to bodily injury or property damage on any of the above coverages?
Yes No X
If So, List Amount $
AGENT CARRIES ERRORS AND OMISSIONS INSURANCE: Yes X No
Should any of the above described policies be cancelled before the expiration date thereof, the issuing company will mail 30
days notice to the parties to whom this certificate is issued.
Dated at: 9:08am On: 10/04/2024 By.
MN License # 20363284
Authorized Insurance Representative
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232402v6