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HomeMy WebLinkAbout2011-04-20 PACKET 04.I.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 4/20/11 a PREPARED BY Community Development Jennifer Levitt ORIGINATING DEPARTMENT STAFF AUTHOR COUNCIL ACTION REQUEST Consider approving the final plat for Pinecliff 4th Addition, consisting of 14 single - family homes to be located along the easterly extension of 60th Street and west of Ideal Avenue. Consider approving the development agreement with U.S. Home Corporation for the construction of the public improvements. STAFF RECOMMENDATION 1. Adopt the resolution approving the final plat for Pinecliff 4th Addition. 2. Approve the development agreement. ADVISORY COMMISSION ACTION DATE REVIEWED APPROVED DENIED ❑ PLANNING ❑ ❑ ❑ ❑ PUBLIC SAFETY ❑ ❑ ❑ ❑ PUBLIC WORKS ❑ ❑ ❑ ❑ PARKS AND RECREATION ❑ ❑ ❑ ❑ HUMAN SERVICES /RIGHTS ❑ ❑ ❑ ❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑ ❑ - ❑ ❑ ❑ SUPPORTING DOCUMENTS ® MEMO /LETTER: Memo from John McCool dated 4/14/11 ❑ RESOLUTION: Draft ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: 1) Final Plat 2) Development Agreement ADMINISTRATORS COMMENTS y� �lrc City Administrator Date COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER CITY OF J MINNESOTA COTTAGE GROVE TO: Honorable Mayor and City Council Ryan Schroeder, City Administrator FROM: John McCool, Senior Planner DATE: April 14, 2011 RE: Pinecliff 4th Addition — Final Plat and Development Agreement Approval Introduction U. S. Home Corporation has filed a final plat application to develop the fourth phase of the Pinecliff neighborhood. The plat name is Pinecliff 4th Addition and consists of 14 single - family lots. This project is located along the easterly extension of 60th Street and west of Ideal Avenue. A copy of the Pinecliff 4th Addition plat is attached. Location Map Background Pinecliff 4th Addition is the third phase to the Pinecliff 2nd Addition that the City Council ap- proved on April 20, 2005. The street and lot layout for Pinecliff 4th Addition is consistent with the preliminary plat. This final plat was distributed to other city departments and utility companies for review and comment. No comments were received. F PINECUFF 4- ADpITION 14 Single family tots -6138 6W3 � ' i 616D 6155 4 y r� ho li � n1 r 6244 6 .L52 z '� 6249 Z2� 8255r� 1 0. 8391 Q 6201 feaz6. 6384 fiGQ 6ca &4 }1 6312 4 909 �9 ' ' 5g X993 5903 84.6 I04, 6141 66pZ6L 63i9�- 5 09 ° r e sb49- c�6� w E sups d e641 1 1 W1 3a �63s 7939 ST Location Map Background Pinecliff 4th Addition is the third phase to the Pinecliff 2nd Addition that the City Council ap- proved on April 20, 2005. The street and lot layout for Pinecliff 4th Addition is consistent with the preliminary plat. This final plat was distributed to other city departments and utility companies for review and comment. No comments were received. Honorable Mayor, City Council, and Ryan Schroeder Pinecliff 4th Addition — Final Plat Approval April 14, 2011 Page 2 of 2 Discussion U. S. Home Corporation will construct the public improvements. City staff prepared the Devel- opment Agreement and the developer has signed it. This agreement requires the developer to provide to the City a letter of credit in the amount of $328,905.00 as a surety for the construction of the public improvements; an irrevocable letter of credit or cash deposit in the amount of $17,311.00 for the on -site improvements like erosion control, street sweeping, yard sod, etc.; and a cash escrow deposit in the amount of $24,235.00for engineering, legal, and administrative expenses the City might incur. The developer is required to make a cash payment totaling $133,382.90 for area charge fees, park fees, sealcoating, street light utility fees, boundary markers, and street light fixtures. The construction plans for the public improvements are being reviewed by the City Engineer. During the construction process, the City will perform inspections of the improvements. Once all the public improvements have been constructed, a report and recommendation from the City Engineer will be presented to the City Council to accept the public improvements. A copy of the agreement and resolution approving the final plat are attached. Recommendation That the City Council adopts: 1. The resolution approving the final plat for Pinecliff 4th Addition, subject to conditions; and The development agreement with U. S. Home Corporation for the construction of the public improvements. a — h 3 6b 6b OON 99041 - r.mry V &ry 9 3 3 I ab ee tG 91 L J J gm OL 3� r4 a � M.64.6b.W5 San V"' ryf 5 E 5 l � i z F f s t' P s y �a 3 Z � 4e 1 5 � E I E V¢ x z F F € e e Z O_ 1 M 64 64 OOS 19 YSb ryf 5 E 5 l � i z F f s t' P s y �a 3 Z � 4e 1 5 � E I E V¢ �a 3 Z � 4e 1 5 � E I E V¢ e� ---- - - - - -- I A I •I. x I . .. a, � � g m Z O r) LL Ll.. J U W ^ z W ro l� P � a I m. i d I5-I $� i z a i ry ro iN o N n o a c L qm I I[ M tlrt x o Pul I \o N � s a'A M, 4 -- — -- . 6. I I � w � I f- a l� P i. e $� i z i ro o N I[ g l k H Pul I \o N � s ase. n N a l I I m �x I ax I wa 00'09 - �- M „ZZ,0.0055£Obl -� �I W z RESOLUTION NO. 2011 -XXX RESOLUTION APPROVING THE FINAL PLAT NAMED PINECLIFF 4TH ADDITION WHEREAS, U.S. Home Corporation has applied for final plat approval of a residential subdivision named "Pinecliff 4th Addition." This plat consists of 14 lots for detached single - family homes and two outlots, all of which are located on property legally described as: Outlot B, PINECLIFF 3RD ADDITION, according to the recorded plat thereof, Washington County, Minnesota. WHEREAS, the Planning Commission held a public hearing on March 28, 2005, to re- view the preliminary plat application filed by U.S. Home Corporation. The Planning Commission unanimously recommended approval of this application, subject to certain conditions; and WHEREAS, the City Council subsequently accepted the Planning Commission's recom- mendation and approved the preliminary plat (Res. No. 05 -065) on April 20, 2005; and WHEREAS, City staff found the final plat substantially consistent with the approved prelimi- nary plat. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Cottage Grove, Washington County, Minnesota, hereby approves the final plat application filed by U.S. Home Corporation for development of a residential subdivision named Pinecliff 4th Addition consisting of 14 lots for detached single - family homes and two outlots, subject to the following conditions: 1. The developer must abide by the 15 conditions stipulated in Resolution No. 05 -065, approving the preliminary plat. 2. The developer must enter into a development agreement with the City of Cottage Grove, pursuant to Title 10 -3 -3 of the City's Subdivision Ordinance. 3. All utility, drainage, and development plans with specifications must conform to the intent of the plans prepared by James R. Hill, Inc. and dated March 18, 2010. These plans shall be approved by the City Engineer prior to issuance of any building per- mit. The Developer may start rough grading of the lots before the plat is filed if all fees have been paid, a MPCA Construction Storm Water Permit has been issued, and the City has been furnished the required securities. 4. The development of this project must comply with the grading and erosion control plans as approved by the City Engineer. 5. All emergency overflow swales must be identified on the Grading and Erosion Control Plan. Resolution No. 11 -XXX Page 2 6. Erosion control must be performed in accordance with the recommended prac- tices of the "Minnesota Construction Site Erosion and Sediment Control Planning Handbook" and the conditions stipulated in Title 10 -5 -8, Erosion Control During Construction, of the City's Subdivision Ordinance. 7. Upon completing site grading, four copies and one pdf format of the "As- Built" survey for the site grade elevations must be submitted to the City. 8. It is the developer's responsibility to keep active and up to date the developer's con- tract and financial surety (e.g. Letter of Credit, etc.). These documents must remain active until the developer has been released from any further obligation by City Council motion received in writing from the City Engineer. 9. The developer must furnish an irrevocable letter of credit in the amount of $328,905.00 (for off -site improvements) to ensure that the developer will construct or install and pay for the following: a. Pave streets b. Concrete curb and gutter c. Hard surface driveways d. Street lights e. Mailboxes f. Water system (trunk and lateral) and water house service stubs g. Sanitary sewer system (trunk and lateral) and sanitary house service stubs h. Storm sewer system i. Street and traffic control signs /signals j. Shaping and sodding drainage ways and berms in accordance with the drainage development plan approved by the City Engineer k. Adjust and repair new and existing utilities I. Sidewalks and trails m. Erosion control, site grading and ponding n. Surveying and staking o. Park and storm water basin boundary markers These Improvements are all in conformance with City approved plans and specifi- cations and will be installed at the sole expense of the developer in conformance with Title 10, Chapter 5 of the City Code; or if in lieu of the developer making said improvements, the City proceeds to install any or all of said improvements, under the provisions of Chapter 429 of the Minnesota Statutes, the City Council may re- duce said Letter of Credit by the amounts provided, upon the ordering, for those public improvements so undertaken. The Letter of Credit must have the same expi- ration date as the Developer's contract. The bank and form of the security is subject to the reasonable approval of the City. The security shall be automatically renewing. The term of the security may be ex- tended from time to time if the extension is furnished to the City at least forty -five (45) days prior to the stated expiration date of the security. If the required public im- Resolution No. 11 -XXX Page 3 provements are not completed, or terms of the Development Agreement are not satisfied, at least thirty (30) days prior to the expiration of a letter of credit, the city may draw down the letter of credit. The City may draw down the security without prior notice for any default of the Development Agreement. 10. A Developer's cash escrow in the amount of $17,311.00 posted with the City's Finance Director in a non - interest bearing account to cover engineering, legal and administrative costs incurred by the City. If this account becomes deficient it shall be the developer's responsibility to deposit additional funds. This must be done before final bonding obligations are complete. 11. An engineering cash escrow in the amount of $24,235.00 posted with the City's Finance Director in a non - interest bearing account to cover costs of City services, expenses, and materials provided in reviewing and processing of the final plat, in- cluding but not limited to staff time, legal expenses, office and field inspections, general inspections, and all other city staff services performed. 12. Payment of park dedication fees in the amount of $28,576.80 is based on 14 lots and 48.6 percent of the $4,200 per lot park fee because park land dedication was only partially satisfied. The park fee is due and payable at the time of executing this agreement. Park fees for subsequent phases shall be calculated and paid based upon requirements in effect at the time the Development Contracts for those phases are entered into. 13. The Homeowner's Association for this phase of development must be part of the Homeowner's Association for the entire Pinecliff neighborhood. The Homeowner's Association is responsible for the maintenance of all vegetation and landscaping lying within the stormwater basins within the Pinecliff neighborhood. The City will rough cut the vegetation within the stormwater basins twice per year if the Home- owner's Association does not maintain these areas. 14. The Developer shall pay a storm water area charge of $33,553.26. This fee is due and payable at the time of executing this Development Agreement. Storm water area charge for subsequent phases shall be calculated and paid based upon re- quirements in effect at the time the development agreements for those phases are entered into. 15. The Developer shall pay a waterworks area charge of $8,173.89. This fee is due and payable at the time of executing this Development Agreement. Waterworks area charge for subsequent phases shall be calculated and paid based upon re- quirements in effect at the time the development agreements for those phases are entered into. A 12- diameter inch water main was be constructed along Hinton Ave- nue within the Pinecliff 3rd Addition. The oversizing of this water main is estimated to cost $7,680.00 and was not credited in the Pinecliff 3rd Addition phase. This amount was subtracted from the waterworks area charge calculation for the Pinecliff 4th Addition and the $7,680.00 will be paid from the City's waterworks trunk fund. Resolution No. 11 -XXX Page 4 16. The Developer shall pay a sanitary sewer area charge of $8,340.15. This fee is due and payable at the time of executing this Development Agreement. Sanitary sewer area charge for subsequent phases shall be calculated and paid based upon re- quirements in effect at the time the development agreements for those phases are entered into. 17. The City will supply the street light poles and luminaries. The Developer will pay the City $2,496.00 for street light poles and $2,788.00 for street light luminaries. This fee is due and payable at the time of executing this Development Agreement. 18. The Developer shall pay the City $1,108.80 for street light utility and surcharge fee. This fee is due and payable at the time of executing this Development Agreement. 19. The Developer agrees to pay a fee of $2,600.00 for initial sealcoating of streets in the subdivision. This fee shall be deposited in the City's street sealcoating fund upon execution of the Development Agreement. The City agrees to sealcoat the streets in the subdivision no later than two years after 13 houses within the subdivi- sion have been constructed. 20. The Developer is responsible for establishing the final grades, topsoil, and seed- ing of all the residential lots within Pinecliff 4th Addition. The City is responsible for planting 15 deciduous trees within the Pinecliff 4th Addition. The City will plant these trees as a yard tree shown in Exhibit A of the July 2, 2008 Settlement Agreement between the City and U.S. Home Corporation. The developer is re- sponsible for site restoration and seeding after the City completes the landscaping. 21. After the site is rough graded, but before any utility construction commences or building permits are issued, the erosion control plan shall be implemented by the Developer and inspected and approved by the City. The City may impose additional erosion control requirements if it is determined that the methods implemented are insufficient to properly control erosion. 22. All areas disturbed by the excavation and back - filling operations shall be fertilized, mulched and disc anchored as necessary for seed retention. Time is of the essence in controlling erosion. If the Developer does not comply with the erosion control plan and schedule, or supplementary instructions received from the City, or in an emer- gency determined at the sole discretion of the City, the City may take such action as it deems appropriate to control erosion immediately. The City will notify the Devel- oper in advance of any proposed action, but failure of the City to do so will not affect the Developer's and the City's rights or obligations. If the Developer does not reim- burse the City for any costs of the City incurred for such work within thirty (30) days, the City may draw down the letter of credit to pay such costs. 23. The Developer is responsible for Erosion Control inspection fees at the current rates. If the Developer does not reimburse the City for the costs the City incurred for Resolution No. 11 -XXX Page 5 such work within thirty (30) days, the City may draw down the letter of credit to pay such costs. 24. Burying construction debris, trees, shrubs, and other vegetation is prohibited on the site. 25. Dust control measures must be in place to prevent dust and erosion, including, but not limited to daily watering, silt fences, and seeding. The City Engineer may impose reasonable measures to reduce dust at the site. 26. During construction, streets must be passable at all times, free of debris, materials, soils, snow, and other obstructions. 27. The Developer shall comply with the 1991 Wetlands Conservation Act, as amended. 28. Approval of Title by the City Attorney. 29. No building permit will be issued until such time as adequate public utilities, in- cluding street lights, and streets have been installed and determined to be available to use. The City will require that the utilities, lighting, and street system have been constructed and considered operational prior to issuance of any building permits in the development. Also, the City must have all the necessary right -of -way and /or easements needed for the property to be serviced. 30. The applicant shall agree to perform a comprehensive search to locate any existing wells on the property. All located and unused wells are to be properly abandoned and sealed, in accordance with applicable County and State law. 31. A final plat showing the correct square footage for each lot area must be submitted prior to recording the final plat with the Washington County Recorder's office. 32. All drainage and utility easements as recommended by the City Engineer must be shown on the final plat and dedicated to the City for public purposes. 33. The final plat and declaration of private covenants must be recorded with the Washington County Recorder's Office before any building permit can be issued. 34. Before final financial guarantees are released, a certificate signed by a registered engineer must be provided. This certificate will state that all final lot and building grades are in conformance to drainage development plan(s) approved by the City Engineer. 35. Adequate dumpsters must be on site during construction of streets, utilities, and houses. When the dumpsters are full, they must be emptied immediately or re- placed with an empty dumpster. The developer is responsible to require each Resolution No. 11 -XXX Page 6 builder to provide an on -site dumpster to contain all construction debris, thereby preventing it from being blown off -site. 36. Adequate portable toilets must be on -site at all times during construction of utilities, roadways, and houses. At no time shall any house under construction be more than 250 feet away from any portable toilet. Toilets must be regularly emptied. 37. The Developer is responsible for completing the final grade on all lots and ensuring all boulevards and yards have a minimum of four inches of organic topsoil or black dirt on them. Placement of organic topsoil or black dirt, sod, and shrubs must not be transferred to homeowners. 38. Irrigation systems installed within City right of way are solely the developers, home- owners association or individual homeowner's responsibility and risk. The City is not responsible or liable for any damage or relocation as a result of City use of or future changes in the right of way. 39. Retaining walls with 1) a height that exceeds four feet or 2) a combination of tiers that exceed four feet or 3) a three -foot wall with a back slope greater than four -to- one shall be constructed in accordance with plans and specifications prepared by a structural or geotechnical engineer licensed by the State of Minnesota. Following construction, a certification signed by the design engineer shall be filed with the City Engineer as evidence that the retaining wall was constructed in accordance with the approved plans and specifications. 40. Upon completion of the work, the Developer shall provide the City with a full set of as -built plans for City records and transmitted to the City in a DWG Autocad format and pdf format. Developer must also furnish the City with a pdf format of the final plat and four prints of the recorded plat. If the Developer does not provide as- builts, the City will produce them at the Developer's expense. 41. The City will not have any responsibility with respect to any street or other public im- provement unless the street or other public improvement has been formally ac- cepted by the City. Upon completion of the improvements, the developer may request, in writing, their acceptance by the City. This request must be accompanied by proof that there are no outstanding judgments or liens against the land upon which the public improvements are located. Upon the City's receipt of a written re- quest for acceptance from the developer, the City Engineer will conduct a final in- spection of the public improvements and will furnish a written list of any deficiencies noted. The City Engineer will base the inspection on compliance with the approved construction plans, profiles and specifications, as required by the city ordinance. Upon satisfactory completion of all construction in accordance with the approved plans, profiles, and specifications, as certified by a registered engineer in the State of Minnesota, and receipt of reproducible record drawings and satisfactory test re- sults, the City Engineer will notify the developer in writing of the City's approval of the public improvements and schedule the request for acceptance for review by the City Council. Resolution No. 11 -XXX Page 7 42. Upon acceptance by the City Council, all responsibility for the improvements must be assumed by the City, except that the developer is subject to a one year warranty on the construction of the improvements from the time of acceptance by the City of all public improvements. 41 The plat shall be developed in one phase. No earth moving shall be done in any subsequent phase until the necessary security has been furnished to the City. No construction of public improvements or other development shall be done in any subsequent phase until a final plat for the phase has been filed in the County Re- corder's office and the necessary security has been furnished to the City. The City may refuse to approve final plats of subsequent phases until public improvements for all prior phases have been satisfactorily completed. 44. All sidewalks to be constructed as part of the development must be completed be- fore building permits will be issued. If a sidewalk exists on or next to a parcel that is to be built upon and if any part of that sidewalk is damaged; the builder must repair the damaged walkway before a Certificate of Occupancy is issued for that particular parcel. 45. The Developer grants the City, its agents, employees, officers, and contractors permission to enter the site to perform all necessary work and /or inspections during the installation of public improvements by the City. 46. The Developer shall weekly, or more often if required by the City Engineer, clear from the public streets and property any soil, earth or debris resulting from con- struction work by the Developer or its agents or assigns. All debris, including brush, vegetation, trees and demolition materials shall be properly disposed of off - site. Burning of trees and structures is prohibited, except for fire training only. 47. The Developer will be required to conduct all major activities to construct the public improvements during the following hours of operation: Monday through Friday Saturday Sunday 7:00 A.M. to 7:00 P.M. 8:00 A.M. to 5:00 P.M. Not Allowed This does not apply to activities that are required on a 24 -hour basis such as dewatering, etc. Any deviations from the above hours are subject to approval of the City Engineer. Violations of the working hours will result in a $500 fine per occurrence. 48. The Developer is responsible to require each builder within the development to provide a Class 5 aggregate entrance for every house that is to be constructed in the development. This entrance is required to be installed upon initial construction of the home, but a paved driveway must be completed before the City will issue a certificate of occupancy for that property. See City Standard Plate ERO -7 for con- Resolution No. 11 -XXX Page 8 struction requirements. The water service line and shut -off valve shall not be located in the driveway. 49. The Developer is responsible for the control of grass and weeds in excess of eight inches on vacant lots or boulevards within their development. Failure to control grass and weeds will be considered a Developer's default and the City may, at its option, perform the work and the Developer shall promptly reimburse the City for any expense incurred by the City. 50. The Developer agrees to furnish to the City a list of contractors being considered for retention by the Developer for the performance of the work by this Develop- ment Agreement. 51. Developer will provide to the City copies of bids, change orders, suppliers, subcontractors, etc., relating to the work to be performed by the Developer. 52. Developer is responsible for all street maintenance, upkeep and repair of curbs, boulevards, sod, and street sweeping until the project is complete. All streets must be maintained free of debris and soil until the subdivision is completed. Warning signs shall be placed when hazards develop in streets to prevent the public from traveling on said street(s) and directing them to detour routes. If and when the street becomes impassible, such streets shall be barricaded and closed. In the event residences are occupied prior to completing streets, the Developer must maintain a smooth driving surface and adequate drainage on all streets until they are completed and accepted by the City. Developer hereby agrees to indemnify and hold the City harmless from any and all claims for damages of any nature whatsoever arising out of Developer's acts or omissions in performing the obliga- tions imposed upon Developer by this paragraph. 53. The Developer shall contact the electric, telephone, gas and cable companies that are authorized to provide service to the property for the purpose of ascertaining whether any of those utility providers intend to install underground lines within the development. The Developer agrees to comply with applicable requirements of franchise ordinances in effect in the City, copies of which are available from the city administrator. 54. Lots 1, Block 1 is prohibited from accessing Ideal Avenue. 55. The Developer must place iron monuments at all lot and block corners and at all other angle points on property lines. Iron monuments must be placed after all site and right -of -way grading has been completed in order to preserve the lot markers for future property owners. 56. The Developer must make all necessary adjustments to the curb stops, gate valves, and metal castings to bring them flush with the topsoil (after grading). Resolution No. 11 -XXX Page 9 57. The Homeowner's Association(s) or the homeowner that has a sidewalk on their property is responsible for maintaining the sidewalks. Such maintenance includes, but is not limited to, sweeping and promptly removing ice and snow or other obstruction to ensure the safe passage of pedestrians. 58. The Developer must remove all dead and diseased trees, all other debris, and fencing materials that serve no practical use. This work must be completed prior to the issuance of a building permit. 59. The City will provide to the Developer the street name plates and poles. The De- veloper must pay the City for the costs of labor and materials for these street name signs before any building permit is issued. 60. The City's curb replacement policy must be complied with. 61. The Special Provisions — Divisions 1, 2, and 16 of Pinecliff 2nd Addition will have precedence when specifying applicable products or materials for the Pinecliff 4th project to ensure that the Approved Plans meet City expectations when conflicts exist with the CEAM specifications, plan sheets, etc. Passed this 20th day of April, 2011. Myron Bailey, Mayor Attest: Caron M. Stransky, City Clerk DEVELOPMENT AGREEMENT PINECLIFF 4TH ADDITION THIS DEVELOPMENT AGREEMENT ( "Agreement ") is entered into on the 16th day of March, 2011 by and between U. S. Home Corporation, a Delaware corporation, referred to as "Developer" and the City of Cottage Grove, a municipal corporation, situated in the County of Washington, State of Minnesota, hereinafter referred to as the "City." RECITALS A. Developer is the fee owner and developer of parcels of land described in Exhibit "A ", which is to be developed as a subdivision in the City bearing the name "Pinecliff 4th Addition" and may sometimes hereinafter be referred to as the "Subject Property." B. City has approved the preliminary plat (Resolution No.05 -065) and final plat named Pinecliff 4th Addition, a single- family development on 13.81 acres that is subdivided into 14 single- family lots; contingent upon compliance with certain City requirements including, but not limited to, matters set forth herein. C. City requires that certain public improvements, which are herein referred to as the "Public Improvements" including, but not limited to storm drainage systems, sanitary sewer, water, grading, driveway aprons, street lighting, trails, sidewalks, curb and gutters, and streets, be installed to serve the Subject Property and other properties affected by the development of the Subject Property, all at the expense of the Developer. D. Developer will perform other work and install certain improvements within the Subject Property, which work and improvements typically consist of boulevard sod, drainage swales, erosion control, street cleaning, and trees and the likes thereof and which improvements to the Subject Property shall be referred to herein as "On -Site Improvements ". Public Improvements and On -Site Improvements are collectively referred to as the "Improvements." E. Developer shall develop the Subject Property and install the Improvements in conformance with the plans and specifications once they have been and approved by the City. NOW, THEREFORE, IT IS HEREBY AND HEREIN MUTUALLY AGREED, in consideration of each party's promises and considerations herein set forth, as follows: 1. Request for Plat Approval. Developer has asked the City to approve the final plat for Pinecliff 4th Addition. The land comprising the Plat in the City of Cottage, Grove, County of Washington, State of Minnesota, and is legally described in Exhibit A. 2. Conditions of Approval. The City hereby approves the Plat on the conditions that: a. The Developer enter into this Agreement; and b. The Developer provide to the City upon execution of this Agreement: An irrevocable letter of credit in the amount of $328,905.00 for all Public Improvements; and ii. A Developer's cash escrow deposit in the amount $17,311.00 for On -Site Improvements; and iii. A Developer's cash escrow deposit in the amount of $24,235.00 for engineering /administrative security in accordance with the terms of this Agreement; and iv. A minimum one (1) year 100% Warranty Maintenance Bond. Said bond shall run from date of the City Council's final acceptance of all Public Improvements and shall be provided by the contractor performing the Public Improvement work for Developer. At the time of final acceptance of the Public Improvements, if it is determined by the City that the Approved Plans were not adhered to, or that the Public Improvement work was done without City inspections, the Developer agrees to increase the length of the 100% Warranty Maintenance Bond up to a maximum of five (5) years as reasonably determined by the City Engineer. The Warranty period for streets commences after the final placement of the wear course and final acceptance by the City Council; and V. Proof of public liability and property damage insurance covering personal injury, including death and claims for property damage which may be caused by reason of the operation of the Developer's equipment and laborers, or caused by Developer's completion of the Public Improvements. Limits for bodily injury or death shall not be less than $1,000,000 for one person and a $2,000,000 for each occurrence; limits for property damage shall not be less than $500,000 for each occurrence. The Developer must keep the insurance in force at all times that construction for the development is in progress. The City must be named as an additional insured on the policy and must provide that the insurer must give the City ten days' written notice prior to cancellation or termination of the insurance policy; and 2- vi. Cash payment to the City totaling $133,382.90 for the following: Park dedication fees. $28,576.80 Sanitay sewer area charge. $8,340.15 Water trunk area char el. $15,853.89 Stormwater assessment area charge. $33,553.26 Street sealcoating. $2,600.00 Street light utility and surcharge. $1,108.80 Street light oles. $2,496.00 Street light luminaires. $2,788.00 Curb Stop Inspections $4,200.00, 5% Cash Escrow (On -site Impr. ) $17,311.00 7% Cash Escrow (Eng/Admin) $24,235.00, Sub -Total $141,062.90' Less Water Area Charge Credit from Pinecliff 3` Addition $7,680.00' Total $133,382.90' c. The Developer record the Plat with the County Recorder within six months after City Council approval of the final Plat. d. The Developer agrees to furnish all labor, materials and equipment per Resolutions No. 05 -065 (Preliminary Plat) and the city resolution approving the final plat for Pinecliff 4rh Addition and perform street and utility repair and adjustment in conformance with the approved drainage /development plans. A copy of the approved plans must be filed with the City engineer prior to commencement of construction of the Improvements. 3. Development Plans and Right to Proceed. The Developer may not construct any Improvements until all the following conditions have been satisfied: a. 'Phis Agreement has been frilly executed by both parties and filed with the City Clerk b. The necessary securities, warranties, and escrows as required by this Agreement have been received by the City. c. The Plat has been submitted for recording with the Washington County Recorder's Office, and d. The City Clerk has issued a letter stating that all conditions of this Agreement have been satisfied and that the Developer may proceed. The Developer agrees that the Improvement work shall be done and performed in a workmanlike manner and all materials and labor shall be in strict conformity with the Approved Plans and City ordinances. Any material or labor supplied rejected by the City or City engineer as defective or unsuitable per the Approved Plans shall be removed and replaced with approved 3- material to the reasonable satisfaction or approval of the City or the City engineer at the cost and expense of Developer. The Developer shall submit a written schedule indicating the progress schedule and order of completion of the Improvements. It is further agreed that upon receipt of written notice from the Developer of the existence of causes over which the Developer has no control which will delay the completion of the Improvements, the City Council, in its discretion, may extend the date herein for completion and that any bond required shall be continued to cover the Improvement work during this extension of time. It is distinctly understood and agreed that all Improvement work covered by this Agreement shall be done at no expense to the City. The Developer agrees to commence the Public Improvement work required by this Agreement on or before July 15, 2011, and will have all Improvements done and significantly completed to the reasonable satisfaction and approval of the City Engineer on or before October 30, 2011, except the wear course /final lift of all streets in the subdivision, which must be completed within three years from the date all other Improvements are accepted by the City or when 13 of the 14 houses have been constructed, whichever is sooner. 4. The Developer shall not do any work or furnish any materials not covered by the Approved Plans or this Agreement, for which reimbursement is expected from the City, unless such work is first ordered in writing by the City as provided in the Approved Plans. Any such work or materials which may be done or furnished by the Developer's contractor without such written order first being given shall be at the Developer's own risk, cost and expense and the Developer hereby agrees that without such written order the Developer will make no claim for compensation for work or materials so done or furnished. It is further agreed, anything to the contrary herein notwithstanding, that the City, City Council and its agents or employees shall not be personally liable or responsible in any manner to the Developer, the Developer's contractor or subcontractors, material men, laborers or to any other person or persons whomsoever, for any claim, demand, damages, actions or cause of any 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 Improvement work and the Improvements and that the Developer will save the City harmless from all such claims, demands, damages, actions or causes of action or the costs, disbursements and expenses of defending the same, except for any such claims, demands, damages, actions or causes of action caused by the misconduct or negligence of the City or someone acting on its behalf. 5. Stakine, SurveyinI4 and Inspections Developer must provide all staking and surveying for the Improvements in order to ensure that the completed Improvements conform to the Approved Plans. The City will provide for construction inspection at the Developer's expense. In addition, the City may, at the Developer's expense, have one or more City Inspector(s) and a soil engineer inspect the work on a frill or part-time basis. Developer must notify the City engineer at least 48 hours in advance, not including weekend days or holidays, for inspection service or scheduling of tests to be performed. 4- 6. Final Inspection /Acceptance Upon completion of the Improvements, the City engineer and representatives of the Developer's contractor and/or engineer will promptly make a'final inspection of the Improvements. Before final payment is made to the contractor by the Developer, the City engineer shall be satisfied that all work is satisfactorily completed in accordance with the Approved Plans, and the Developer's engineer shall submit a written statement attesting to the same. The final approval and acceptance of the Improvements by the City engineer shall constitute final approval and acceptance by the City without further action on the part of any party hereto. 7. Default by Developer In the event of default by the Developer as to any of the Improvement work to be performed hereunder by the Developer, its successors or assigns, the City is granted the right to declare any sums provided by this Agreement due and payable in full, and the City may draw upon any financial guaranty(ies) posted in conformance with this Agreement. In the event the City draws from any financial guaranty(ies) sums that exceed the costs or damages to the City, the City will promptly return such excess amounts to the Developer. Notwithstanding anything to the contrary contained in this Agreement, if the City determines that the Developer is in default of any of the terms of this Agreement, the City shall promptly notify Developer of the default and /or non - compliance ( "Cure Period "). The City agrees to provide the Developer a reasonable and appropriate amount of time for the Developer to correct any noted defaults, based on the measures that will need to be taken by the Developer to correct the default. In the event Developer fails to correct said non - compliance within the designated Cure Period, the City may take any other remedy or action available to the City under the terms of this Agreement. 8. Denial of Permits Breach of any term of this Agreement by the Developer or failure to comply with City ordinances shall be grounds for denial of building or occupancy permits for buildings within the subdivision until such breach is corrected by the Developer. 9. Attorneys' Fees The Developer will pay the City's reasonable attorney's fees to be fixed by the Court in the event a suit or action is brought to enforce the terms of this Agreement, or in the event an action is brought upon a bond or letter of credit furnished by the Developer as provided herein. 10. Assignment The Developer may not transfer or assign any of its obligations wider this Agreement without the prior written consent of the City, which shall not be unreasonably withheld, conditioned or delayed. 11. Agreement to Run with Land The Developer agrees to record this Agreement among the land records of Washington County, Minnesota simultaneously with recording of the Plat of "Pineeliff 4th Addition." The provisions of this Agreement shall run with the land and be binding upon the Developer and its successors in interest. Notwithstanding the foregoing, no conveyance of the Property or any part thereof shall relieve the Developer of its liability for full performance of this Agreement unless the City expressly so releases the Developer in writing. - 5 - 12. Release Upon completion and approval of all Improvements required herein, including completion and acceptance of the Improvements and satisfaction of all of the Developer's obligations under this Agreement, the City agrees to execute an instrument (in form sufficient to remove this Agreement as a further encumbrance against the Property) releasing all Property from the terms of this Agreement. 13. Severability The provisions of this Agreement are severable, and in the event that any provision of this Agreement is found invalid, the remaining provisions shall remain in full force and effect. 14. Consent The Developer represents and warrants that there are no other persons or entities with interests in the Property. 15. Applicable Law This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. IN WITNESS OF THE ABOVE, the parties have caused this Agreement to be executed on the date and year written above. U. S. HOME CORPORATION CITY OF COTTAGE GROVE: By By ona Aune Myron Bailey, Mayor Its: tce- President By Caron M. Stransky, City Clerk ACKNOWLEDGEMENT FOR CITY STATE OF MINNESOTA ) )ss. COUNTY OF WASHINGTON ) The foregoing instrument was acknowledged before me this __ day of _ 2011, by Myron Bailey, Mayor and Caron. M. Stransky, City Clerk of the City of Cottage Grove, a Minnesota municipal corporation, on behalf of the corporation. Notary Public (Notary Seal) -6- ACKNOWLEDGEMENT FOR DEVELOPER STATE OF MINNESOTA ) � ) , n )ss. COUNTY OF~ . N } On this ` y of- p 'rr� 2011, before me, a notary public within and for said County, personally appeared Jonathan Anne, Vice - President of U.S. Home Corporation, a Delaware corporation, on behalf of said corporation, did say that he is respectively the Vice- President of U.S. Home Corporation, and he did acknowledge and execute said instrument to be his free act and deed on behalf of said Corporation. _ Notary ublic (Notary Seal) ' r :_, .;; CAROLE L. TOOHEY RSu -fik� .. NOTARY PUBLIC - MINNESOTA MY COMMISSION EXPIRES 0"1 -2012 THIS DOCUMENT DRAFTED BY: Community Development Department City of Cottage Grove 7516 - 80` Street South Cottage Grove, MN 55016 7- EXHIBIT "A" LEGAL DESCRIPTION OF THE SUBJECT PROPERTY Outlot B, PINECLIFF 3RD ADDITION, according to the recorded plat thereof, Washington County, Minnesota. -8-