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Home My WebLink About2015-10-21 PACKET 04.B. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 10/21/15 • . PREPARED BY: Community Development Jennifer Levitt ORIGINATING DEPARTMENT STAFF AUTHOR � * * * * * � * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * � * � * * * * * * COUNCIL ACTION REQUEST: Consider approving the Amendment to the Cayden Glen Development Agreement and Escrow Agreement to confirm that the City of Cottage Grove will be responsible for paving the final lift of asphalt on the streets in the Cayden Glen subdivision. STAFF RECOMMENDATION: Approve the request. BUDGET IMPLICATION: $ $ BUDGETED AMOUNT ACTUAL AMOUNT FUNDING SOURCE 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 Jennifer Levitt dated 10/14/15 ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: � OTHER: Cayden Glen - First Amendment to Development Agreement ADMINISTRATOR'S COMMENTS: ,,,,� � � �� . � City Administrator Date * * * * * * * * * * � * * * * * * * * * * � * * * * * * * * * * * * * * * * � * * * * * * * � * COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER Cottage � Grove �here Pride anaPrOSPerity Meet TO: Honorable Mayor and City Council Charlene Stevens, City Administrator FROM: Jennifer Levitt, Community Development Director/City Engineer DATE: October 14, 2015 RE: Cayden Glen Development Agreement Amendment Introduction NNP-Jamaica, LLC has requested the City's approval to amend the Cayden Glen Development Agreement and Escrow Agreement. This amendment would confirm that the City will be responsible for paving the final lift of asphalt on the streets in the Cayden Glen subdivision. The Developer has completed the construction of all public improvements in the Cayden Glen plat with the exception of paving the final lift of asphalt. This amendment acknowledges that the City is solely responsible for constructing the final street improvements and the Developer does not have any further responsibility for those street improvements. The agreement also states that the City and Developer agree that the remaining funds held in escrow pursuant to the Escrow Agreement shall be disbursed to the City to pay for the actual costs of constructing the final street improvements. If the actual costs of construction are less than the escrowed funds, the remainder of those funds would be disbursed to the Developer. In the event that the actual costs are more than the escrowed funds and the improvements are completed on or before December 1, 2018, the City will invoice the Developer for the outstanding balance. If the final street improvements are not completed by December 1, 2018, the Developer would have no further obligation to pay any further amounts to the City for those costs. A copy of the Development Agreement Amendment is attached. Recommendation The City Council approve the Cayden Glen First Amendment to Development Agreement and Escrow Agreement to confirm that the City will be responsible for paving the final lift of asphalt on the streets in the Cayden Glen subdivision. All other sections of the Cayden Glen Development Agreement remain in place and in force as originally approved. FIRST AMENDMENT TO DEVELOPMENT AGREEMENT CAYDEN GLEN ADDITION THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT CAYDEN GLEN ADDITION (this "Amendment") is made as of October , 2015 (the "Effective Date"), between the CITY OF COTTAGE GROVE, MINNESOTA, a Minnesota municipal corporation (the "City") and NNP-JAMAICA, LLC, a Delaware limited liability company("Developer"). STATEMENT OF FACTS A. The City and Developer have executed that certain Development Agreement Cayden Glen Addition with an effective date of December 4, 2013 (the "Agreement"), pursuant to which Developer is developing certain real property located in the City of Cottage Grove, Washington County, State of Minnesota into a residential subdivision pursuant to a final plat named "Cayden Glen" as further described in the Agreement(the "Plat"). B. Additionally, pursuant to the Development Agreement, the City, Custom Home Builders Title, LLC ("Escrow Agent") and Developer have executed that certain Third Pai-ty Escrow Agreement Cayden Glen- Public Improvements dated December 12, 2013, pursuant to which Developer escrowed funds to pay for the completion of certain Public Improvements in the Plat (the "Escrow Agreement") in an amount equal to One Hundred Twenty Five Percent(125%) of the City's estimate of the cost for completing the Final Street Improvements. C. Developer and the City wish to amend the Agreement and the Escrow Agreement in order to confii�rn that the City will be responsible for paving the final lift of asphalt on the streets in the Plat, as fut�ther provided below. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and confessed, the City and Buyer hereby agree as follows: l.) Capitalized Tei-ms. Except as otherwise defined herein, all capitalized terms shall have the meaning given them in the Agreement. 2.) Construction of Final Street Improvements. The City acknowledges and agrees that Developer has completed the construction of all of the Public Improvements with respect to the Plat, with the exception of paving the final lift of asphalt on the streets in the Plat (the "Final Street Improvements"). Notwithstanding anything to the contrary in the Agreement, the City acknowledges and agrees that it shall be solely responsible for constructing the Final Street Improvements and that Developer shall have no further responsibility to construct the Final Street Improvements. The City and Developer agree, however, that the remaining funds held in escrow pursuant to the Escrow Agreement, in the amount of $228,377.76 (the "Escrowed Funds"), shall be disbursed to the City in order to pay for the City's actual costs of constructing the Final Street Improvements, in accordance with the requirements of the Escrow Agreement. 1 (a) In the event that the actual costs of construction of the Final Street Improvements are less than the Escrowed Funds, the remaining Escrowed Funds shall be promptly disbursed to Developer. (b) In the event that the actual costs of construction of the Final Street Improvements are completed on or before December l, 2018 and are more than the Escrowed Funds, Developer shall be invoiced for the outstanding balance. If the Final Street Improvements are not completed by December 1, 2018, then the Developer shall have no further obligation to the City to pay any further amounts for the Final Street Improvements. Other than as stated above, the Developer shall have no fui-ther obligation to the City to pay any further amounts for the Final Street Improvements. 3.) Ratification. Except as expressly amended or otherwise modified by this Amendment, all terms, covenants, conditions and provisions set forth in the Agreement and the Escrow Agreement shall remain in full force and effect. 4.) Bindin� Effect. This Amendment amends and supplements the Agreement and the Escrow Agreement. If there is a conflict between the provisions of the Agreement, the Escrow Agreement and this Amendment, the provisions of this Amendment shall control. This Amendment shall be binding upon and inure to the benefit of the City, Developer and their respective successors and permitted assigns. 5.) Countei�pat�ts. This Amendment may be executed simultaneously in one or more countetpai-ts, each of which shall be deemed an original, but all of which together shall canstitute one and the same instrument. [REMAINDER OF PAGE HAS BEEN 1NTENTIONALLY LEFT BLANK] 2 IN WITNESS OF THE FOREGOING, the pai�ties hereto have caused this Amendment to be executed as of the above date. CITY OF COTTAGE GROVE, MINNESOTA By: Myron Bailey,Mayor By: Joe Fischbach, City Clerk NNP-JAMAICA, LLC By , Walter F.Nelson, President 3 ACI�NOWLEDGEMENT OF ESCROW AGENT The Escrow Agent acicnowledges and agrees to the terms set forth above. CUSTOM HOME BUILDERS TITLE, LLC By Its: 4826-3697-9496,V. 1 4