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HomeMy WebLinkAbout1994-04-07 Petition to Ammend Developer AgreementREQUEST FOR COUNCIL ACTION DATE: April 7, 1994 ITEM NO.: Department Approval: Administrator Reviewed: Agenda Section: Name Jeanne A. Mabusth Zoning Title Building & Zoning Administrator Item Descrip, )n: Richard R. Hansen - Petition to Amend Developer's Agreement for Foxwood Second Addition List of Exhibits A - Petition B - Developer's Agreement C - Plat Resolution D - Foxwood Second Addition Plat E - Site Plan -Lot 2, 75' Setback for Septic System from Adjacent Wetland (26' Setback for Structures) F - Site Plan -Lot 2, 150' Setback for Septic System and Structures from Natural Environment Lake G - Plat Map Review of Foxwood Second Addition The plat of Foxwood Second Addition was approved by the City on December 19, 1989. Dennis Kumlin, the developer, executed the required Developer's Agreement but failed to post acceptable security to the City. The Developer's Agreement was then filed against the Chain of Title of Lots 1, 2 and Outlot A. This would alert any future buyer that the developer was responsible for constructing private roadway within Outlot A before building permits would be issued for new construction on either lot. Developer's Agreements are filed with plat when development is to be delayed and Letters of Credit not posted at time of final plat approval. The subdivision was purchased in 1992 by Richard Hansen. At the time of subdivision approval, Lot 2 could be developed as a residential lot without the need of setback variances. Review Exhibit E, note the setback from the defined wetlands for the septic system was 75' and a structure could be located 26' from the edge of the wetland. In 1992 the new Shoreland Regulations rendered the lot unbuildable for the wetland is now the upper basin of French Lake classified as a Natural Environment lake. Both septic and structure must meet 150' setback from the 930.5' of the OHWL. Review Exhibit F. Request for Council Action continued page 2 of 2 April 7, 1994 Richard R. Hansen -Petition to Amend Developer's Agreement The property owner is aware that the City is seeking a reclassification of the Natural Environment lake which he understands will take at least six months in time. It is the desire of the new owner to sell Lot 1 and to allow the new owner to build on Lot 1 without constructing the private road. Based on the directives of the final plat resolution, Exhibit C, the City cannot issue building permits until the private road is constructed. This petitioner asks that until the buildability of Lot 2 is resolved that the City allow a building permit to be issued for new residential construction for Lot 1 and that private road construction would only commence if a building permit is issued to Lot 2 and at that time the developer or owner would provide a Letter of Credit and engineered road plans for construction of private road. The private road would then be completed one year from the time the City issues the building permit for Lot 2. The owner of Lot 2 would then assume the payment of all fees to the City at the time the building permit would be issued for Lot 2. Review Exhibit G, the private road of Foxwood Second Addition was to connect to Outlot C of Trees To Be plat providing a loop from Old Crystal Bay Road or County Road 84 to Fox Street. No matter what the resolve of the buildability of Lot 2, the City will still retain the underlying easements over Outlot A within Foxwood Second Addition plat. Options of Action To approve the petition of RRH and Company, a Minnesota general partnership, as proposed requiring the construction of the private road only at the time a building permit is issued to Lot 2 and at that time a Letter of Credit will be provided to the City along with engineered plans for private road and direct attorney for petitioner to prepare the amendment to the Developer's Agreement in a form suitable for filing against the Chain of Titles of the property. The amendment shall be reviewed by City staff and City Attorney prior to scheduling Agreement for action by the City Council. X19 To require the posting of a Letter of Credit. The amount of the Letter of Credit to be determined by the City Engineer and to proceed with an amendment of the Developer's Agreement that would allow a building permit to be issued for Lot 1 before the bu; ldability of Lot 2 is resolved. COUNCIL ACTION REQUESTED: To provide conceptual direction to petitioner. Isv PETITION TO AMEND DEVELOPER'S AGREEMENT RECITALS A. On December 19, 1989 the City and Dennis F. Kumlin entered into a developer's agreement for Foxwood Second Addition (the "Developer's Agreement"). The Developer's Agreement was recorded as an exhibit to a Notice of Adverse Claim recorded by the City on September 23, 1991 as Document No. 2204996 in the office of the County Recorder of Hennepin County, Minnesota. A copy of the Developer's Agreement is attached as Exhibit A. B. RRH & Co., a Minnesota general partnership ("RRH") acquired title to Lot 1 and Lot 2, Block 1, Foxwood Second Addition (hereinafter respectively referred to as "Lot 1" and "Lot 2"), Hennepin County, Minnesota in 1992. As such, RRH succeeded to the obligations of Dennis F. Kumlin under the Developer's Agreement, including the obligation to construct a paved road over Outlot A, Foxwood Second Addition. C. There presently exists some uncertainty regarding the set -backs applicable to Lot 2. Until this uncertainty is resolved, it may not be possible to construct a home on Lot 2. Under the existing guidelines of the City, if Lot 2 could not be developed for residential purposes, Lots 1 and 3, Block 1, Foxwood Second Addition could be served by a driveway rather than the road contemplated by the Developer's Agreement. D. Petitioner therefore requests the City of Orono to amend the Developer's Agreement as follows: PETITION 1. Amend paragraph 2 of the Developer's Agreement to provide that the improvements required under paragraph 2 need only be constructed in connection with the construction of a home on Lot 2. 2. Amend the Developer's Agreement so that the obligation of the Developer tr construct a road on Outlot A shall be the exclusive responsibility of the owner of Lot and to make it clear that the responsibility to construct the improvements described in paragraph 2 of the Developer's Agreement do not encumber Lot 1. 3. Amend paragraph 4 of the Developer's Agreement to provide that the completion date of all such improvements shall be no later than (1) one year from the time the City of Orono issues a building permit for Lot 2. 4. Amend paragraph S of the Developer's Agreement so that the performance deposit be provided only when the City of Orono issues a building permit for Lot 2. 5. Amend paragraph 6 of the Developer's Agreement to provide that the owner of Lot 2 shall pay all City fees at such time as a building permit is issued for Lot 2. 6. Amend paragraph 9 of the Developer's Agreement so that all notices to Developer shall be directed to Richard R. Hansen in c/o Fredrikson & Byron, 1100 International Centre, 900 Second Avenue South, Minneapolis, Minnesota 55402. RRH & CO. Dated: Marc'i 29, 1994 By: Its: Partner VN*7. SITE PLAN FOR DENNIS KUMLIN OF PROPOSED LOT 2 23C.2S 2,00 ' r Date : 8-8-86 Scale: 1" = 50' TlllS ITEM ficii;AfrAs B�' I v y r y rAl VL 9y-o3