HomeMy WebLinkAbout2016-06-15 PACKET 07.E. Cottage
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��er� Pride and Qro�P�rity Me�t
Clt�/ COUI'1CII CONSENTAGENDA
Acfion Request Form �'E'
Meeting Date
6/15/2016
Department
Finance
Title of Request
Approve First Amendment to Third Party Agreement - Oak Cove
Staff Recommendation
Approve First Amendment to Third Party Agreement - Oak Cove
ATTACH MENTS:
Description Type Upload Date
Council memo - Roland Cover Memo 6/10/2016
First Amendment to Third Party Agreement Oak Resolution 6/10/2016
Cove
Cottage
� Grove
�here Pride and PCOSPerity Meet
To: Mayor and City Council Members
Charlene Stevens, City Administrator
From: Robin Roland, Finance Director
Date: June 10, 2016
Subject: Approve First Amendment to Third Party Agreement— Oak Cove
Introduction
In 2014, the City of Cottage Grove entered into a Third Party Escrow agreement with Meridian
Land Company to finance the expenses of construction of public improvements to the Oak
Cove development and the construction of Camels Hump Park.
Discussion
Since 2014, construction on the Oak Cove development and Camels Hump Park has taken
place and the agreement has fulfilled its purpose of securing construction of the improvements
and timely payment of the contractors. The City's portion of the escrow is now estimated to fall
short of the final expenses for the City's portion of the construction costs for Camels Hump.
The City's engineer estimates that an additional $86,000 is necessary to complete the project
this spring.
The original Third Party Escrow agreement allowed for amendments if change orders or
additional costs became apparent. The amendment will need to be signed by all parties who
signed the original agreement and the City would then submit its addition to the escrow held by
the title company.
Action Requested
Approve the First Amendment to the Third Party Agreement — Oak Cove.
FIRST AMDENDMENT TO
THE THIRD PARTY ESCROW AGREEMENT
OAK COVE— SITE AND PARK IMPROVEMENTS
THIS AMENDED AGREEMENT is entered into on June 15, 2016, by Land Title Inc. (hereafter
"Escrow Agent"), City of Cottage Grove, a municipal corporation (hereafter"City"), and Meridian Land
Holdings, LLC, a Delaware Limited Liability Corporation company (hereafter"Developer").
RECITALS
WHEREAS, on June 18, 2014 the City approved a final plat named Oak Cove Addition
(hereafter"Subdivision"); and
WHEREAS, City and Developer entered into a development agreement dated June 18, 2014,
(hereafter"Development Agreement"); and
WHEREAS, Developer agreed to privately construct public improvements serving the property
and the public park improvements which were described in Exhibits A and B of the original
Development Agreement; and
WHEREAS, the City and Developer agreed to and did deposit escrowed funds with Land Title
for the payment of their respective portion of the improvements previously described; $416,556 from the
Developer and $378,618 from the City; and
WHEREAS, the original Third Party escrow agreement made provision for potential
amendments/modifications by the parties if additional funding was determined to be required to address
change orders or unanticipated Improvement costs, which costs will be reasonably agreed upon by the
City and Developer; and
WHEREAS, the agreement can be amended or modified only by a written Amendment, written
and signed by all of the parties hereto.
NOW THEREFORE, in consideration of the foregoing recitals and other good and valuable
consideration, it is agreed between the parties as follows:
1. The City will deposit additional escrowed funds in the amount of$86,000 with the Escrow Agent
for completion of the public park improvements outlined in the original Development agreement.
These additional funds are necessary due to unanticipated improvement costs which the City
(and/or its representative) has agreed to.
2. All other portions of the original Third Party Escrow Agreement remain unchanged and in force.
(SIGNATURES ON NEXT PAGE)
Page 1
LAND TITLE
ESCROW AGENT
BY:
Larry Mountain
Its: Vice President
STATE OF )
) ss
COUNTY OF )
On this of , 2016, before me, a Notary Public, in and for said County and
State, appeared Larry Mountain, to me personally known, who being by me first duly sworn, did say that
he/she is the Vice President for Land Title Inc., and acknowledged said instrument to be the free act and
deed of Land Title Inc., who then executed the foregoing document by authority of Land Title Inc., and
acknowledging said instrument to be the free act and deed of said company.
NOTARY PUBLIC
Page 2
CITY OF COTTAGE GROVE
BY:
Myron Bailey, Mayor
(SEAL)
AND
BY:
Joe Fischbach, City Clerk
STATE OF MINNESOTA )
) ss
COUNTY OF WASHINGTON )
On this of , 2016, before me, a Notary Public, in and for said County and
State, appeared Myron Bailey and Joe Fischbach, to me personally known, who being by me first duly
sworn, did say that they are respectively the Mayor and City Clerk for the City of Cottage Grove, who
executed the foregoing document by authority of the City Council of the City of Cottage Grove, and said
Mayor and City Clerk acknowledge said instrument to be the free act and deed of said City of Cottage
Grove.
NOTARY PUBLIC
Page 3
MERIDIAN LAND HOLDINGS, LLC, A DELAWARE
LIMITED LIABILITY COMPANY
BY:
Christian M. Wold
Its: Vice President
STATE OF )
) ss
COUNTY OF )
On this of , 2016, before me, a Notary Public, in and for said County and
State, appeared Christian M. Wold, to me personally known, who being by me first duly sworn, did say
that he is the Vice President for Meridian Land Holdings, a Delaware limited liability company, and
acknowledged said instrument to be the free act and deed of Meridian Land Holdings who then executed
the foregoing document by authority of Meridian Land Holdings company, LLC and acknowledging
said instrument to be the free act and deed of said partnership.
NOTARY PUBLIC
THIS DOCUMENT DRAFTED BY:
Community Development Department
City of Cottage Grove
12800 Ravine Parkway South
Cottage Grove,MN 55016
Page 4