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Home My WebLink About2012-07-18 PACKET 04.K.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 7/18/12 • PREPARED BY Community Development John McCool ORIGINATING DEPARTMENT STAFF AUTHOR COUNCIL ACTION REQUEST Consider approving the Development Agreement Addendum with U.S. Home Corporation for Pinecliff 5th Addition and authorize the Mayor and City Clerk to sign the agreement. STAFF RECOMMENDATION Approve the Development Agreement Addendum with U.S. Home Corporation for Pinecliff 5th Addition and authorize the Mayor and City Clerk to sign the agreement. BUDGET IMPLICATION $N /A BUDGETED AMOUNT ADVISORY COMMISSION ACTION ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES /RIGHTS ❑ ECONOMIC DEV. AUTHORITY SUPPORTING DOCUMENTS 9 $N /A N/A ACTUAL AMOUNT FUNDING SOURCE REVIEWED APPROVED DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ® MEMO /LETTER: Memo from John McCool dated 7/12/12 ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: Pinecliff 5th Addition Development Agreement Addendum COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER CITY OF COTTAGE GROVE J MINNESOTA TO: Honorable Mayor and City Council Ryan Schroeder, City Administrator FROM: John McCool, Senior Planner DATE: July 12, 2012 RE: Development Agreement Addendum with U. S. Home Corporation for Pinecliff 5th Addition Introduction An addendum to the Development Agreement between U.S. Home Corporation and the City of Cottage Grove for the Pinecliff 5th Addition has been prepared. This addendum requires the Developer to reimburse the City for their share of the costs to relocate and /or remove private utilities within that portion of Ideal Avenue South located between 60th and 63rd Streets South. The City Council approved the final plat for Pinecliff 5th Addition on May 16, 2012, The Development Agreement was fully executed on June 20, 2012. The Developer has been grading the site for the past several weeks and the private utility companies are in the process of developing plans to relocate and /or remove existing private utilities within the vacated portion Ideal Avenue lying between 60th Street and 63rd Street. Discussion U.S. Home Corporation's share to relocate or remove private utilities within that segment of vacated Ideal Avenue South is 14 percent of the total costs. Private utility companies will bill the City for the cost to relocate or remove these private utilities. City staff prepared an addendum to the Development Agreement stipulating that the Developer must reimburse the City for their share to relocate or remove these private utilities. Upon receiving the bill from private utility companies for this work, the City will give written notice to U.S. Home Corporation of the amount that needs to be reimbursed to the City. Payment is required to be within 30 -days. A copy of the Development Agreement Addendum is attached. Recommendation That the City Council approve the Development Agreement Addendum with U.S. Home Corporation for the Pinecliff 5th Addition and authorize the Mayor and City Clerk to sign the agreement. DEVELOPMENT AGREEMENT ADDENDUM PINECLIFF 5` ADDITION THIS DEVELOPMENT AGREEMENT Addenda n ( "Agreement ") is entered into on the 18th day of July, 2012 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 5th Addition" and may sometimes hereinafter be referred to as the "Subject Property ". B. Development of the Pinecliff 5 Addition required that a portion of existing Ideal Avenue located between 60 Street South and 63` Street South be vacated and discontinued. C. On July 18, 2012, the City Council adopted a resolution that vacated and discontinued this segment of Ideal Avenue South. D. The City provided notice to private utility companies that any private utilities within this vacated right -of -way must be relocated or removed pursuant to Section 7 -6 -27 of the City Code which provides "if the City vacates the right -of -way that contains the facilities of a registrant, the registrant's right in the vacated right -of -way are governed by Minnesota Rides 7819.3200 ". The applicable Franchise incorporates City ordinances regarding street vacation. E. The right -of -way vacation occurring in this project will replace a portion of the street with a public park area and platted residential lots. The City has determined that 14 percent of the benefit of this right -of -way vacation inures to U.S. Home Corporation, a private developer. The balance of this public improvement project is in the interest of the public through the creation of a new public park area. F. The Developer is responsible for the costs associated with relocating and/or removal of private utilities that exist within the west one -half of the Ideal Avenue South right -of -way that abuts Blockl of Pinecliff 5 Addition. NOW, THEREFORE, IT IS HEREBY AND HEREIN MUTUALLY AGREED, in consideration of each party's promises and considerations herein set forth, as follows: 1. Private Utility Relocation and /or Removal Fees. The Developer agrees to reimburse the City of Cottage Grove for all costs bill to the City by private utility companies for the relocation and /or removal of private utilities within that portion of Ideal Avenue South vacated by the City of Cottage Grove on July 18, 2012. u 2. Billing and Payment. The Developer will remit payment to the City within 30 -days of written notice to the Developer. IN WITNESS OF THE ABOVE, the parties have caused this Agreement Addendum to be executed on the date and year written above. U. S. HOME CORPORATION By: Jonathan Anne Its : Vice- President STATE OF MINNESOTA COUNTY OF WASHINGTON CITY OF COTTAGE GROVE: Myron Bailey, Mayor Caron M. Stransky, City Clerk -32 ACKNOWLEDGEMENT FOR CITY )ss. The foregoing instrument was acknowledged before me this day of 2012, 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) 2- ACKNOWLEDGEMENT FOR DEVELOPER STATE OF MINNESOTA ) )ss. COUNTY OF WASHINGTON ) On this day of , 2012, 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 Public (Notary Seal) THIS DOCUMENT DRAFTED BY: Community Development Department City of Cottage Grove 7516 — 80`" Street South Cottage Grove, MN 55016 -3- EXHIBIT "A" LEGAL DESCRIPTION OF THE SUBJECT PROPERTY Outlet D, PINECLIFF 2ND ADDITION, according to the recorded plat thereof, Washington County, Minnesota And Outlet A, PINECLIFF 4 TH ADDITION, according to the recorded plat thereof, Washington County, Minnesota am The East 507.30 feet of the North 214.64 feet of the South 1,976.36 feet of the East Half of the Northeast Quarter of Section 5, Township 27, Range 21, Washington County, Minnesota NW41 The East 494.94 feet of the South 220.00 feet of the North 660.51 feet of the South 1,761.72 feet of the East half of the Northeast Quarter of Section 5, Township 27, Range 21, Washington County, Minnesota And That part of the west half of vacated Ideal Avenue lying southerly of the easterly extension of the northerly line of Outlot A, PINECLIFF 4 TH ADDITION, according to the recorded plat thereof, Washington County, Minnesota and lying northerly of the easterly extension of the northerly line of Outlet D, PINECLIFF 2 ND ADDITION, according to the recorded plat thereof, Washington County, Minnesota. 4-