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Home My WebLink About1998-04-01 PACKET 09.B.RE�E�EST OF CITI° COUtdCIL AC°fION COU�ICIL AG�NDA PdIEETING I�Enh # DATE 4/1/9� ` a P�Ef'AREf3 €3Y: Cornmurity Development 6Cim Lirdq�i_st ORlGItVP,TIM� �EPAE2TMENT STAFF AUTHOR �a�.�:4ffi4�ffi�«a�s�a,�a..«.��.��<�.��¢.��«�.��.*.. � • - �' Consider the development of Pine Forest 3rd Addition: '!. Approve the Subdivision ,0.greement with U.S. F9ome - Thompson Land Division 2. Adopt a resolution ordering improvement and preparation of plans and specifications for Pine Forest 3rd Addition. � • : r � . • �t r- � , �' • ■ ' ■ � •r ■ i � ■ ' ■ � � • •' ■ -•t� �• 17ti�� REVIEWED ❑ ❑ ❑ ❑ ❑ ❑ ❑ . �. „ •i APPROVED ❑ ❑ ❑ ❑ ❑ ❑ ❑ DEPVIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ �� • . • . .� •_ -, •: • _ • .. -. •; ►�1' • •. >... .. . . . ...... . . .. . . .. , , � #-t � ■ * �� • ■ • + •. . ��1 � ,f f �. ` '.. ' • : ' �� y • �!• �'.. % �� Y l ) > �/ � �� e,ea�««��<aa��eo�n��.�«��«o=.w�.4R$.�*�.«� ��u�ciL ��ri�� : ❑ ��ov�� C1 c�r�� ., , . , ..: �. . .. �. � „�4 �' � � i TO: Honorable Mayor & City Council Members Ryan Schroeder, Ciiy Administrator FROM: John McCool, Senior Planner DATE: March 24, 1998 SUBJECT: Pine Forest 3rd Addition — Subdivision Agreement Approval INTRODUCTION The subdivision agreement has been prepared for the development of a residential subdivision named Pine Forest 3' Addition. The developer is U.S. Nome -Thompson Land Development, whereby the terms and provisions contained in the agreement have been accepted. The developer plans to begin grading the site in about two weeks and is requesting that the pubiic improvements be compieted this summer. City Councii is also requested to approve the subdivision agreement and adopt a resolution authorizing the preparation of pians and specifications for the public improvements. 1=-7��3:(r7cZ�ll7. G7 The preliminary platting of this property was originally submitted by Good Value Homes and approved by the City in June 1993 (Res. No. 93-101). The first phase was platted as Almar Farms Addition and consisted of 43 lots. Phase II was constructed this year as Pine Forest 1 Addition and it consisted of 49 lots. Phase III was constructed last year and consisted of 29 lots for unattached single family homes. Ali the pubiic improvements for both phases have been constructed and new home canstruction has started. DISCUSSION Subdivision Agreement The terms of the agreement are consistent with the policy of the City Councii and the requirements of the City's Subdivision Ordinance. The agreement does include a provision that the street light utility cost for a three-year period and the estimated cost to seaicoat the pubiic roadways will be assessed equaily to the 56-lots. It is estimated that the street light utility cost wiil be $88.20 per lot and sealcoating wili be $96.93 per Bot. Memo to City Council and City Administrator March 24, 1998 Page 2 Mr. William Pritchard of Orrin Thompson Homes is going to sign the subdivision agreement even though the estimated street light utility costs for a three-year period wiil be assessed. He has some concerns for this utility cost to be billed to a new homeowner during the three-year assessment period. Pritchard suggests that the City biil the developer the streetiight utility cost for each vacant lot untii such time a new home is built and ownership is conveyed to the new owner. In Pritchard's letter, he states that they wouid not even object to paying this utility cost for each vacant lot until such time the parcel is soid. A copy of his letter is attached. The subdivision agreement was prepared with the idea that street lignt utility costs be assessed for a three —year period. This approach is an effective way to reduce administrative costs, versus the City preparing, printing and mailing and receipting payment of $7.35 per lot into the system four times per year. If a home is buiit within the three-year assessment period, the City's utility bill will include streetlight-operating costs. If a vacant lot exists beyond the three-year assessment period, then the City will not receive any payment to cover the street light utility charge for that vacant lot. The number of vacant lots that exist beyond the three-year period is relatively low when compared to the number of lots and new homes built. A copy of this summary is aiso attached. Payments received through the assessment process and from new accounts as new homes are built will begin to help defray the City's costs in providing lighted streets. This new City policy wili be applied to all new development in the community and the utility rate wili be adjusted as needed. .< • Staff recommends that the City Council take the following actions relative to the development of Pine Forest 3rd Addition: 1. Approve the subdivision agreement between the City of Cottage Grove and US Home - Thompson �and Development. 2. Adopt a resolution authorizing the City Engineer to prepare plans and specifications for ail the pubiic improvements. VACANT �OT SURVEY OFSELECTED SINGLE FAMILY HOME SUBDIVISIONS City of Cottage Grove SUBDIVISION NAME YEAR NUMBER OF NUMBER OF DEVELOPED LOTS VACANT�OTS Pinehili Acres 4th 1986 36 1 Roiling Hilis 4 1987 36 2 Hidden Valley 2 1987 36 1 Ridgewood 3� 1989 50 2 80 Place Hidden Valley 3` Va�tage Point 5th Hidden Vailey 4in East Meadow Cliff 2" Ridgewood 61n Meadow Acres 2nd Hidden Valley 5cn Hidden Valley 6tn Eagle Ridge 1989 1991 1992 1993 1993 1993 1993 1994 1994 1996 54 24 28 22 29 39 54 8 14 21 2 5 1 6 1 5 9 19 Total 451 56 C)IZR�N TI�CJMPSON Ht�MES Minnesota's Endurin�Standard o�Vc�lue M,arch 25, 1999 Mr. John McCool Senior Plsnner City of Cott��e Grova 7516 SOth Street So Cot!age Grove, MN. 55016 Re', Pinc Forest 3rd AddifiCn Co[t�age Grove„ MN. Deaz Sohn: �Ve have rcceived the claange� for tha Developer Agreemcnt regarding Condition kA.4 Street Seal coafing. We still believe that if'the City requires that the cosc of the Street Lights must be paid for fhree yeara and rhe City is still going co require the homeowner co pay the street lighte when they inove-in therc is an over lap for some individuu(s beins bitled twice. We believe a more equitable solution is f'or A3 Street Lights to read as follows: The Dovaloper agzeee to provide a public xtrcct ligfiting system plannnd in accordanee with the appliaable Ciry ordinance, pursuant to the "Petition Iteuis" The Developer shall pay the street light utility cost' of $2.45/]ovmonth fur rhree year period, oncc a lot has been transfcrrcd or alosed the cost of thc street lights shall be reduced 6y ihe number of :otx tihat has been transfe�cd or elosed." We would raot evcn bc opposed to the three yeaze being eliminated and the cosi of the street lights being billed untSl atl lots have been closed or transferred. Please revicw the changes Intemally and leC u6 know if thic is aceeptable. � Sin atel,v, i[�a.,�w� rRiu�" W illiavn Pritchutd Division Seniar V[em President 'Chompson Land Development �'� iiD. ,. ... ,� � � 8421 Wayzata Boulevard, Suite 300 � Golden Valley, Minnesota 55426 612/544-7333 phone 612/544-9086fax RESOLUTION NO. 98-XXX RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS FOR PINE FORES7 3RD ADDITION WHEREAS, pursuant to a resolution passed by the council on the 1st day of April, 1998, the city engineer was authorized to prepare plans and specifications for the improvements of Pine Forest 3rd Addition Utility and Street Improvement project; NOW THEREFORE BE IT RESOLVED, BY THE CITY COUNCIL OF COTTAGE GROVE, COUNTY OF WASHINGTON, STATE OF MINNESOTA; 1. Such improvements are necessary, cost effective, and feasible as detailed in the feasibility report. 2. Such improvements are hereby ordered as proposed in the council resolution adopted the 1 st day of April, 1998. 3. The engineering firm of Bonestroo, Rosene, Anderlik, & Associates is hereby designated as the engineer for this improvement. The engineer shaii prepare plans and specifications for the making of such improvement. Passed this 1 st day of April, 1998. Attest: Caron M. Stransky, City Glerk John D. Denzer, Mayor G:N9981RESOLUTI�PF3rd Imp 8 Prep ResWution.doc [Reserved for recording data] DEVELOPMENT AGREEMENT FOR PINE FOREST 3r ADDITION This Agreement is made and entered into on the day of , 1998, by and between Thompson Land Division of U. S. Home Corporation, hereinafter 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". WHEREAS, the DEVELOPER is the owner and developer of a subdivision known as Pine Forest 3rd Addition consisting of fifiy-six (56) lots situated in the City of Cottage Grove, County of Washington, State of Minnesota, and described in Exhibit "A", which is attached hereto and made a part hereof by reference, and WI-IEREAS, Chapter 23 of the City Code of the City of Cottage Grove, requires DEVELOPER to make certain improvements in the subdivision, and the parties hereto aze desirous of entering into an agreement with respect to such improvements, a list of which unprovements is set forth, together with the esrimated cost thereof, in Exhibit "B" atCached hereto and made a part hereof by reference, hereinafter referred to as the "Improvements". 1 NOW, THEREFORE, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: I. DEFIIQITIONS. 11 Terms. The following terms shall have the meanings as set forth below. 1.2 C�. "City" means the City of Cottage Grove, a Minnesota municipal corporation. 13 Develooer. "Developer" means Thompson Land Division of U. S. Home Corporation. II. DEVELOPER WARRANTIES. 2.1 Warranty of Title. The DEVELOPER represents and warrants that it owns fee title to the property which is the subject of this subdivision, free and cleaz of any mortgages, liens, and other encumbrances. 2.2 Clear Title to the CITY. Prior to the dedication, transfer, or conveyance of any real properiy or interest therein to the CITY, the DEVELOPER shall deliver Co tkie CITY evidence in the form of a title opinion or a title insurance policy evidencing good ritle in the DEVELOPER. The condition of the title of any real properry or interest therein to be dedicated, transferred or conveyed to the CITY as provided for herein shall vest good and mazketable title in the CITY, free and cleaz of any mortgages, liens, encumbrances, taxes or assessments. III. PLAT APPROVAL. 3.1 Plat Name/Recordine of Plat. Subject to the terms and conditions of this Development Agreement, the recitals above, and a11 other applicable ordinances of the City of Cottage Grove, including the zoning and subdivision ordinances, the preliminary and final plat resolutions, and the CITY's Development Policy the CITY hereby approves the recording of the plat known as "Pine Forest 3rd Addition". DEVELOPER shall record the plat prior to the CITY awazding bids for the Improvements which aze listed as "Perition Items" in Eathibit "B". In the � event that the plat is not recorded prior to the award of the bids, the CITY shall delay the award of the bid untii the DEVELOPER records the plat, or until the DEVELOPER transfers to the CITY the right-of-way and easements where the Improvements are to be installed. 3.2 Easements. DEVELOPER shall grant all easements required by the CITY on the final plat or DEVELOPER shall provide the easements in otherwise recordable form, without cost to the CITY. li��7 I� GI'iiu �.ZU�I�1�1_�]��C.� 4.1 CITY Improvements. The DEVELOPER has petitioned the CITY to construct and install Improvernents listed as"Petition Items" in Exhibit "B". The CITY shall construct the Improvements in accordance with its regular methods of making public improvements. The estimated costs in E�ibit "B" "Petition Items" include engineering, legal, administrative and finance and bonding costs. The CITY shall assess the costs for the Improvements, including engineering, legal, administrative and finance and bonding costs against the lots located within the subdivision in accordance with Minnesota Statutes, Chapter 429. 4.1.1 The amount of the assessment shall be computed by taking the total costs of the Improvements, including engineering, legal, administrative and finance and bonding costs less any deposits or payments made by the DEVELOPER, according to the terms of this Agreement. 4.1.2 The Improvements assessed pursuant to Minnesota Statutes, Chapter 429 shall be assessed with a pay back over a period of three (3) yeazs. 4.2 Waiver a) The DEVELOPER hereby waives the requirement of hearings and nofice of any hearings necessary for installarion of said Improvements, or Improvements installed at the request of the DEVELOPER as provided herein; the DEVELOPER further waives objec6on to any and all defects in the proceedings for the ordering of the Improvements, the letting of the contracts for the 3 Improvements and the assessment of the cost of said Improvements. b) DEVELOPER fwther waives any objection to the assessments for said Improvements levied by the CITY pursuant to Minnesota Statutes, Chapter 429, specifically including the right to appeal the levy of assessments for the Improvements to District Court, and further including change orders necessary for the completion of the Improvements, if such objection is not made in writing and delivered to CITY between the time of the opening of the bids for the installation of said Improvements and prior to the CITY Council approval or award thereof, or within Thirty (30} days of the opening of the bids, whichever shall occur first If the DEVELOPER's objection is received, the CITY Council sha11 have the option of relettin� the bids, continuing with the Improvements or deleting the Improvements from the contract. 43 Street Li�htin�. The DEVELOPER agrees to provide a public street lighting system planned in accordance with the applicable CITY ordinance, pursuant to the "Petition Items". The street light utility cost which amounts to $29.40 per lot per yeaz for a three-year period shall be assessed equally to the fifiy-six (56) lots in the subdivision. The total amount is $4,939.20 and equates to $88.20 per lot. 4.4 Street Sealcoatine. The DEVELOPER agrees to pay the cost of the first sealcoating application of all public streets in the subdivision. The cost of sealcoating is based on the rate of $0.65 per square yazd muitiplied by the total square yazds of roadway. The sealcoating cost, which amounts to a total of $5,428.00 shall be assessed equally to the fifty-six lots in the subdivision. V. DEVELOPER IMPROVEMENTS. 5.1 CITY Conformance. All work and improvements required by trus Agreement to be performed by the DEVELOPER shall be built and constructed by the DEVELOPER in accordance with the plans and specifications approved by the CITY and the CITY Council, and all ordinances and preliminary and final plat resolutions of the CITY or any amendments thereto and CITY C� Development Policy. 5.2 Gradine and Drainase Plans. The DEVELOPER shall provide the CITY with grading and drainage plans to be approved by the CITY. The grading and drainage plans shall include lot and house elevations, drainage swales which shall be sodded in the same manner as boulevazds, storm sewer, catch basins, erosion control structures and pending azeas to conform with the overall CITY storm sewer plan, and said plans shall be approved by the CITY. Except for individual house sites, property with slopes of Fifteen percent (15%) or greater shall not be rough graded. The plan shall contain holddown elevations that will allow for the spreading of excavation material in order to achieve compliance with the grading plan. The grading of the site shall be performed by the DEVELOPER and completed in conformance with the approved grading and drainage plan. Grading shall he coordinated with the CITY to coincide with the schedule for the installation of CITY Improvements. The DEVELOPER shall cons�uct drainage facilities adequate to serve the subdivision in accordance with the approved plans. The DEVELOPER agrees to grant to the CITY, without cost to CITY, all easements reasonably necessary for the preservation and maintenance of said drainage system, for drainage basins, for utility service and for utility looping. Prior to issuance of a Certificate of Occupancy for any home conshvcted on a lot within the subdivision, a Cer[ificate of Compliance by a surveyor shall be submitted reflecting conformance with the approved grading plan, and that the lot pin corners aze installed. 53 Public Streets. The DEVELOPER shall grade, in accordance with the grading plan provided to and approved by the CITY, all public streets, boulevazds, driveways and other public lands, if any, and other lands shown in the approved grading plan. The DEVELOPER shall perform the grading prior to the awazd of the CITI"s contract for the Improvements. If the DEVELOPER does not perform the work required by this paragraph, the CITY shall complete all work required of 5 the DEVELOPER under the CITY contract. The DEVELOPER shall be fmancially responsible for payments for this extra work, which shall be assessed as provided above. The CITY shall have the right to demand an increased financial guazatitee in accordance with paragraph 8.1 hereof, if applicable. 5.4 Public Street Maintenance. DEVELOPER shall be responsible for all maintenance, upkeep and repair (including snow plowing and grading) of all public streets contained within the subdivision until said streets are completed and accepted by the CITY, and DEVELOPER hereby agrees to indemnify and hold the CITY hannless from any and all claims for damages of any nature whatsoever arising out of the establishment of this plat and the streets within the plat until those streets have been accepted by the CITY. 5.5 Street Siens. The DEVELOPER shail be financially responsible for the of street identification signs. Street signs sha11 be in conformance with the names as indicated on the CITY street naming system. The actual number and location of signs will be determined and installed by the CITY. 5.6 Restoration. The DEVELOPER shall cleaz any soil, earth or debris from the street Improvements within the subdivision, which is placed thereon as a result of construction on the land within the addition by the DEVELOPER or its agents, successors or assigns. The DEVELOPER shall restore any gravel base for the street Improvements if said gravel base is containinated by mixing construction or excavation debris or earth in the gravel base and repair any damage to bituminous surfacing and/or concrete curbing of the street Improvements resulting from the authorized or unauthorized use of construction equipment. Completion of the work described in this paragraph shall be completed within Fifteen (15) days of notice by the CITY to the DEVELOPER that repair or restoration is required pursuant to this paragraph. 5.7 Erosion Control. Prior to the commencement of grading, the DEVELOFER shall � obtain and pay for a General Storm Water Pernut far Construction Activity from the Minnesota Pollution Control Agency and a grading permit from the City of Cottage Grove. The DEVELOPER, its contractors and subcontractors, must perform all grading in accordance with the said Permits. Erosion control shall comply with the terms of the Pernuts, and the Minnesota Pollution Control Agency and Environmental Protection Agency Guidelines for erosion and sediment control plans. After the site is rough graded, the DEVELOPER shall provide for erosion control, and provide necessary erosion control devices that aze reasonably required by the CITY. The parties recognize that time is of the essence in controlling erosion. If the DEVELOPER does not provide erosion control, the CITY may, without notice, take such action as it deems appropriate to control erosion. The CITY may, without notice, draw upon any posted financial guarantee to pay costs incurred by the CITY in controlling erosion within the subdivision, or, at the CITY's option, assess the additional costs incurred as part of the Improvements, which additional costs shall be assessed as provided above. 5.8 Sod. The DEVELOPER shall pay for and install cultured sod in from the street curb to the reaz wall of the dwelling and major drainage swales as determined by the CITY in the entire subdivision. Corner lots shall be sodded to the sideyard setback. For a lot where the Certificate of Occupancy is issued between August 1 and May 1 of the following yeaz, completion of the work described in this pazagraph sha11 be completed by the DEVELOPER by the 15th of June; for a lot where the Certificate of Occupancy is issued between May 1 and July 31, completion of the work described in this pazagraph shall be completed by the DEVELOPER by the 15th day of September. Notwithstanding anydiing to the contrary in pazagraph 5.8, it is agreed that, in lieu of the DEVELOPER installing sod on the lot, the DEVELOPER may provide to the lot owners certificates which enfitle the lot owners to have the sod delivered to the properiy at the owner's 7 request for instaliarion by the lot owner. 5.9 Lot Trees. DEVELOPER agrees to pay the CITY to install one (1) 1 3/4° caliper boulevard tree per lot, except for comer lots which shall have one boulevazd tree on each street side of the property, in acwrdance with CITY's ordinance specifications. For a lot where the Certificate of Occupancy is issued between August 1 and May 1 of the following yeaz, completion of the work described in tivs pazagraph shall be completed by the City by the 15th of June; for a lot where the Certificate of Occupancy is issued between May 1 and July 31, completion of the work described in this pazagraph shall be completed by the City by the 15th day of September. S.10 Drivewav A_prons. The DEVELOPER shall pay for and construct hazd-surface driveway surfaces from the street curb to the front of the gazage or front yard setback line for each lot in accordance with the CITY approved standazds and ordinance requirementa For a lot where the Certificate of Occupancy is issued between August 1 and May 1 of the following yeaz, completion of the work described in this pazagraph shall be completed by the DEVELOPER by the I Sth of June; for a lot where the Certificate of Occupancy is issued between May 1 and July 31, completion of the work described in this paragraph shall be completed by DEVELOPER by the 15th day of September. 511 Prohibition on Transfer of Resoonsibilitv. The DEVELOPER shail not transfer or assign its responsibility to perform the requirements of paragraphs 5.6, 5.7, 5.9 and 5.10 to any lot purchaser or builder of home on any lot within the subdivision. Notwithstanding anything to the contrary in paragraph 5.11, it is agreed that the DEVELOPER may transfer its responsibiliTy to install sod in accordance with pazagraph 5.8, provided that the DEVELOPER shall remain liable for the performance thereof. VI. PARK DEDICATION. 6.1 Pazk Dedication. The DEVELOPER sha11 pay to the CITY a park fee in lieu of land 0 dedication the sum of Fifty—six Thousand and OOI100 Dollazs ($56,000.00). Payment shall be made to the CITY upon execution of this agreement. VII. OTHER REQtTIREMENTS. 7.1 Occupancv and Access. No occupancy of any building in said plat shall occur until water and sanitary sewer Improvements aze available for use and Class V gravel base for streets is in place. Furthermore, the DEVELOPER shall maintain reasonable access to any occupied house or houses within said addition, including necessary street maintenance such as grading and graveling and snow removal prior to permanent street surfacing and acceptance of said streets by the CITY. 7.2 Other A eg ncies. IC is fiurther agreed by the CITY that if the DEVELOPER requires any evidence of this Agreement for Yhe purpose of escrow requirements of the Federal Housing Administration, Veterans Administration, or any other United States Govemmental Agency, the CITY will furnish al] required guarantees to the effect that the listed improvements will be or have been made, and that the particulaz lot will not be assessed therefore, or if assessed, that all assessments have been paid if payment therefore has previously been made in the amount of One Hundred Twenty-Five percent (125%) of the estimated assessment for said lot. It is acknowledged that this Agreement does not apply to sewer availability charges imposed by the Metropolitan Waste Control Commission, and the CITY will not be required to fumish any guarantees with respecCthereto. 7.3 Weed/Grass Maintenance. DEVELOPER shall not a11ow or permit within the subdivision any weeds, grass, brush or other rank vegetation to a height greater than 8", or permit any accumulation of dead weeds, grass or brush. In the event the DEVELOPER fails to comply with this provision, the Director of Public Works may give the DEVELOPER notice to cut or remove material in violafion of this paragraph. All costs of cutting or removing incurred by the 0 CITY shall be paid by the DEVELOPER, or assessed against the Properiy. VIII. FINANCIAL GUARANTEE REQUIREMENTS. 8.1 Financiai Gi.iarantee Requirements. The DEVELOPER shall provide to the CITY cash and/or a non-expiring or automa6cally renewable irrevocable Letter(s) of Credit in a total amount of Four hundred thirry-seven thousand seven hundred eighty-five and 08/100ths Dollazs ($437,785.08) to assure the completion and payment of the following items: Petition Items (40% of estimate) Sireet Grading (150% of estimate) Offsite improvements (boulevard trees, yazd sod, street signs and swale sod)(150% of estimate) Erosion Conffol (150% of estimate) Street Sweeping (150% of estimate) Grading Compliance and Lot Pin Corner Certificate TOTAL $224,723.08 $ 13,752.00 $100,725.00 $ 41,610.00 $ 975.00 $ 56.000.00 $437,785.08 The financial guarantees shail provide a guarantee of the payment of the "Petition Items" and completion of "Escrow Items" set forth in Exhibit "B°. The letter of credit must provide that it will be automatically extended at its expiration date on an annual basis unless siacty (60) days prior to the expiration date the Director of Community Development is notified by certified mail that said letter of credit will not be extended and therefore will expire. The urevocable Letter(s) of Credit shall be subject to the approval of the CITY Attomey, prior to acceptance by the CITY. It is mutually acknowledged that the protection/cleaning existing utilities, erosion control, street sweeping, street signs, landscaping and private infrastructure constitute One Hundred Fifiy 10 percent (150%) of the estimated costs, "Petition Items" are Forty percent (40%) of the estimated costs, and the grading compliance and lot pin corner certificate constitute One Hundred percent (100%) of the estimated cosu. Except as provided in pazagraph 5.7, the CITY may draw upon the Letter(s) of Credit with ten (10) business day's notice to the DEVELOPER, if any one or more of the following conditions exist: a) Nonpayment of the special assessments or installments thereof. b) The DEVELOPER fails to pay CITY invoices for boulevard trees within thirty (30) days of the invoice date. c) The DEVELOPER fails to complete the 'Bscrow Items" by Che deadlines specified in this Agreement. d) DEVELOPER fails to provide appropriate erosion control pursuant to pazagraph 8.2. e) Notwithstanding the time requirements contained in this Agreement for completion of any improvement by the DEVELOPER, if any of the required "Escrow Items" aze not completed at least Thiriy (30) days prior to the expuation of the Letter(s) of Credit, the CITY is authorized to draw upon the remaining balance of the Letter(s) of Credit. After assessments for the public improvements have been paid in full on Sixty percent (60%) of the lots within the subdivision, the irrevocable Letter(s) of Credit for the "Petition Items" may be reduced as assessments, or installments thereof, are paid on the remaining lots. The reduction sha11 be made two times a year on February 15 and September 15 upon the request of the DEVELOPER. With approval of the CITY, a Letter(s) of Credit (except for amounts posted to guarantee payment of assessments) may be reduced from rime to time as work required by this il Agreement is completed, or CITY invoices aze paid for work required to be done by the CITY, provided that the Letter(s) of Credit shall not be reduced in an amount less than Ten percent (10%) of the financial guarantees for offsite improvements and erosion control. The irrevocable Letter(s) of Credit shall be reduced upon certification by the CITY that the items have been satisfactorily completed and CITY invoices are paid. IX. DEFAULT AND REMEDIES. 9.1 Default bv DEVELOPER. In the event of default by the DEVELOPER as to any of the work to be performed hereunder by itself, or its heirs, successors, or assigns, the CITY is hereby granted the right to declaze the entire sum set forth in this Agreement due and payable in full, with all real estate taxes due and payable in the year following the breach of any provision of this Agreement, and the CITY may immediately bring legal action against the DEVELOPER to collect the sums covered by this Agreement andlor draw upon the financial guazantees posted in conformance with paragraph 81. The DEVELOPER shall be responsible for the payment of the sum set forth in this Agreement, including any special assessments levied. 9.2 Terms of Breach. Breach of any term of this Agreement by the DEVELOPER or failure to comply with the CITY ordinances, resolutions or the CITY Development Policy shali be grounds for denial of buiiding or occupancy permits for buildings within the subdivision until such breach is corrected by the DEVELOPER. 9.3 Validi . If any portion, section, subsection, sentence, clause, paragraph or phrase of this Agreement is for any reason held to be invalid, such decision shall not affect the validity of remaining portions of the Agreement. 9.4 Rights Cumulative. No remedy conferred in this Agreement is intended to be exclusive and each shall be cumulative and shall be in addition to every other remedy. The election of any one or more remedies shall not constitute a waiver of any other remedy. 12 9.5 Attorney's Fees. DEVELOPER agrees to pay the CITY its reasonably necessary attorney's fees and costs, in the event that any suit or action is commenced to enforce the terms of this Development Agreement or in the event that action is brought upon the Letter(s) of Credit fmnished by DEVELOPER as provided for herein. 9.6 Indemnification. The DEVELOPER agrees to indemnify and hold the CITY harmless against any and all liability, loss, damages, costs and expenses, including reasonable attomey's fees, which the CITY may hereafter sustain, incur or be required to pay by reason of any negligent act or omission or intentional act of the DEVELOPER, its agents, officers, empioyees, contractors or subeontractors, which is incurred in connection with or is of any nature whatsoever arising out of the establishment of the plat, or the installation of the Improvements or work which the DEVELOPER is required to perform under the terms of this Agreement. 9.7 Payment of Citv Costs. Upon execution of this conCract, the DEVELOPBR shall pay to the CITY a deposit in the amount of $2,500.00, to be used by the CITY to pay its out-of- pocket costs in preparing this contract. T"he out-of-pocket costs to be paid shall include, but not be limited to, attorneys' fees, engineering fees, and other technical or professional assistance, including the work of the CITY staff and employees. The $2,500.00 shall be credited to the final costs that aze assessed to the project. X. MISCELLANEOUS. 101 Notices. All notices, certificates or other communications required to be given to the CITY and DEVELOPER hereunder shall be sufficiently given and shall be deemed given when delivered, or when deposited in the United States mail, fast ciass, with postage fully prepaid and addressed as follows: If to the CITY: City of Cottage Crrove Director of Community Development 7516 - 80th Street South 13 Cottage Grove, MN 55016 If to the DEVELOPER: . Orrin Thompson Homes Division of U.S. Home Corporation 8421 Wayzata Boulevard, Suite 300 Golden Valley, MN 55426 The CITY and the DEVELOPER, by notice given hereunder, may designate different addresses to which subsequent notice, certificate or other communications will be sent. 10.2 No Third Partv Beneficiary. This Agzeement and any financial guazantees required pursuant to its ternis aze not intended for the benefit of any third party. 103 Amendments, Chanees and Modifications. This Agreement may be amended or any of its tenns modified only by written amendment authorized and executed by the CITY and the � �. . 10.4 Apolicable Law. This Agreement shall be govemed by and construed in accordance with the laws of the State of Minnesota. 10.5 Successors and Assiens. This Agreement shall be binding upon and eatend to the heirs,representatives, assigns and successors ofthe parties. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day and yeaz first written above. THOMPSON LAND DIVISION OF U.S. HOME CORPORATION CITY OF COTTAGE GROVE By Its $y Its By Its: John D. Denzer. Mavor Attest: By Its: Cazon M. Stransky, Citv Clerk 14 STATE OF MINNESOTA COUNTY OF WASHINGTON On the _ day of ) ) ss ) ACKNOWI,EDGMENT BY CITY 1998, before me a notary pubiic within and for said County, personally appeazed John D. Denzer and Caron M. Stransky to me personally known, each by me duly sworn, each did say that they are respectively the Mayor and Clerk of the City of Cottage Grove, a municipality named in the foregoing instrument and that the seal affixed to said instrwnent was signed and sealed on behalf of said municipality by authority of its City Council and said Mayor and Clerk acknowledged said instnunent to be the free act and deed of said municipality. STATE OF MINNESOTA CK�1�1��Y�7� On the _ day of ) ) ss Notary Public DEVELOPER ACKNOWLEDGM�NT 1998, before me a notary public within and for said County, personally appeazed and to me personally known, each by me duly swom, each did say that they aze respectively the � of Thompson Land Division of U. S. Home Corporation, a corporation named herein, and each did execute the foregoing instrument as their free act and deed on behalf of the corporation. Notary Public THIS INSTRUMENT DRAFTED BY: Community Development Department City of Cottage Grove 7516 — 80�' Street South Cottage Grove, MN. 55016 � 15 EXHIBIT A (Legal Deseription) PINE FOREST 3rd ADDITION Outiot A, Pine Forest 2nd Addition, according to plat thereof on file and of record in the office of the County Recorder, Washington County, Minnesota � � PINE FOREST 3rd ADDITION ESCROW ITEMS Street Grading Off-site improvements (boulevazd trees, yazd sod, street signs and swale sod Erosion Control Street Sweeping Grading Compiiance and Corner Lot Pin Certificate TOTAL PETITION ITEMS Sanitary Sewer Water Main House Services Storm Sewer Street ImprovemenCs Street Sealcoating Street Light Improvements Street Light Utility Chazge Street Light Poles & Luminaires Waterworks Area Chazge Storm Sewer Area Charge Sanitary Sewer Area Charge $ 9,168.00 $ 6'7,150.00 $ 27,740.00 $ 650.00 $ 56,000.00 $ 160,708.00 $ 86,507.00 $ 60,251.00 $ 43,598.00 $ 96,560.00 $ 163,617.00 $ 5,428.00 $ 15,080.00 $ 4,939.20 $ 8,000.00 $ 27,249.00 $ 35,072.94 $ 15,505.56 TOTAL $ 561,807.70